Las Vegas hotel and casino operator Mandalay Resorts Group reported on Tuesday that average overnight hotel room rates rose to an all-time high in the second quarter, exceeding the average rates just before the Sept. 11, 2001, attacks.
"We operate record room rates at five resorts regardless of the summer season. We beat the record we received in August 2001 and broke our previous record," Chief Financial Officer Glenn Schaefer said in a conference call after reporting the company's second-quarter earnings.
Schaffer said rising demand for hotel rooms, successful price increases, continued recovery in Las Vegas tourism and the opening of a convention center at the company's flagship Mandalay Bay resort in Streep, Las Vegas, helped raise room rates.
"Mandalay is one of the few companies in the consumer sector that is achieving organic revenue growth with price increases well above the U.S. economy's own growth rate," Schafer said.
The most dramatic increase in revenue per available room was at the Mandalay Resort in Streep, Las Vegas, which operates Mandalay Bay, Luxor and Excalibur hotels.
Mandalay Bay Resort Up 18% In Leppa And 14% In Luxor
In Excalibur, repairs are up 11%. 파워볼실시간
However, improvements were typically included in Las Vegas. "Our Nevada experience has definitely improved off-the-strip," said Shaffer
He explained that revenues at the company's Neve Circus Reno, Neve Hotel, and Silver Legacy Hotels, which are 50% owned by the company's Neve Legacy hotels in Reno, were slightly lower.
Shaffer expects the company's real estate average to rise by about 6% to 7% in August and a "double-digit" percentage point increase in September.
Mandalay's new 1,122 room towers are expected to cost an average of $220 a night, he added, but "if you look at how things are going, it could turn out to be a low number."
