A new project by for MGM Mirage is set to open in December. The new almost 6,000 room facility threatens to influence the already low rates in Las Vegas hotels, as this article from Reuters explains.
The reports showed that room rates fell by 25% in Las Vegas in August and right now a night in December in one of the CityCenter’s rooms can be booked for $129 per night.
Built like a mini-metropolis, CityCenter comprises condominium towers and a shopping center. Visitors still come to Vegas but they are very careful when choosing what to spend money on. And while its creators hope that the new rooms will spark competition and bargains, so far CityCenter seems to bring only problems.
Despite the financial problems which threatened the project from the beginning and even construction problems, CityCenter will open on schedule in December.
Rivals applaud the new arrival and fear that if it would prove to be unsuccessful, the end result would have to be cutting the rates even lower. And the future of Las Vegas travel doesn’t look too promising. The airline flight cutbacks along with an increase in gas prices and the current economy resulted in a 6% drop in visitors so far this year.
But even with the problems looming above, CityCenter is a success in Las Vegas. Several projects have remind either a partially built skeleton or stalled by bankruptcy. And even those which planned to redesign their properties have had second thoughts lately and choose to wait before they embark in such an adventure.
New resort just opened in Orlando
Despite the economy, hoteliers are brave enough to open new resorts in the States. According to this article from Hospitality.net , the Bonnet Creek Resort opened on Nov 12. It features 500-room Waldorf=Astoria, a 1,000-room Hilton Hotel and a Rees Jones signature golf course. The huge project also features a 249,000-square-foot conference center, a pool area, a family water recreational area and a 25,000-square-foot Guerlain spa.
Possible signs of improvement in the industry
We’ve recently written about the occupancy rates in Anaheim rising during the first two weeks of October and it wasn’t the only good news. In Italy, the hotels started performing better since August, while Dubai saw a big increase in occupancy rates in September. However, the future of the industry is not yet very clear. Hoteliers expect the rates to stay low for the next year or so.
Related posts: