Dive Brief:
- In the third quarter of 2025, Caesars Entertainment saw net revenues decline 9.8% year over year in its Las Vegas segment, where it operates several prominent resorts along the Strip. The operator also saw adjusted EBITDA drop 18.8% in Las Vegas, according to an earnings report published Tuesday.
- Caesars’ regional segment was a bright spot in Q3, posting year-over-year net revenue growth of 6.2%. The operator’s regional segment outperformed Las Vegas in the second quarter as well.
- Caesars CEO Tom Reeg attributed the poor Vegas results to lower citywide visitation. He and other company leadership remained optimistic, though, on the market’s intrinsic value during a Tuesday earnings call.
Dive Insight:
Caesars had a “difficult summer” amid “softness in leisure demand for Las Vegas,” Reeg said during the call. In the second quarter, Caesars reported visitor declines from Canadian tourists, specifically, though Reeg did not call out international tourism weakness for Q3.
At the Lodging Conference earlier this month, Hotel Association of Canada CEO Beth McMahon said Canadians opted to travel in-country this summer amid ongoing economic uncertainty and political tensions.
That changing traveler behavior may have impacted Las Vegas in the quarter, with the city’s visitor volume down 12% and 6.7% year over year in July and August, according to the Las Vegas Convention and Visitors Authority.
Caesars’ Las Vegas performance results were a result of 92% occupancy in Q3 compared to 97% for the same quarter last year, as well as a 5% year-over-year decrease in ADR “as a result of citywide visitation weakness during the quarter,” Caesars Chief Operating Officer Anthony Carano said on the call.
Despite the Q3 declines, Caesars is seeing “sequential improvement in operating trends in Las Vegas as we enter the fourth quarter,” Carano said.
There is nothing structurally wrong with Las Vegas, according to Reeg, who said the “breadth of what’s available” for travelers to do in the market does not compare to any other city in the world, “so we feel fantastic about Vegas, fundamentally.”
A return of group business to Las Vegas in the fourth quarter of 2025 and first quarter of 2026 is expected to “bring us back to a much healthier-looking market,” Reeg said.
