Downturn in visitation is ‘normal economic cycle activity’ and will ‘play out’
Having secured its third or fourth best results on The Las Vegas Strip of all time, Caesars Entertainment’s CEO Tom Reeg has rallied that there is ‘no crisis’ on the infamous boulevard.
Caesars’ Las Vegas segment delivered a quarterly sequential improvement in occupancy and rate trends, leading to a six per cent EBITDA decline in Q4, but an improvement versus Q3. But this masked a 7.5 per cent decline in visitation in 2025 with drive-in traffic from California falling, along with tourism fromCanada.
Reeg said: “I think this is normal economic cycle activity in leisure for us. If you look back over the history of Caesars in Vegas, this was probably the third or fourth best fourth quarter of all time. So there is really no crisis happening in Vegas. It is normal cyclicality, and it will play itself out. Center Strip is holding up quite well. The mix of what is available in Vegas between the Sphere and the Raiders and all of the entertainment and the food and beverage and all of the options you have here, they are unsurpassed. We are 92 per cent occupied instead of 96 per cent, but we are going to get back to 96. There is nothing unusual happening here. I would expect it to recover as time goes by, and we are already seeing that happen over the fourth quarter and into the first quarter.”
Segment results were driven by 92 per cent occupancy, versus 96.5 per cent last year, and an Average Daily Room rate decrease of five per cent. During the fourth quarter, Caesars benefited from a strong event calendar which produced a record F1 event for Caesars, a strong New Year’s Eve, and 17 per cent group and convention room night mix during the quarter.
“We continued to elevate the customer experience in Las Vegas during the quarter with the addition of two new presidential villas at the top of the Colosseum Tower, as well as 29 new sky villas at the top of the Octavius Tower, both at Caesars Palace,” Reeg explained. “I am excited to say feedback from our VIP guests on this product has been very strong. These recent investments into our flagship Caesars Palace asset, including a fully remodelled Palace Court slots area, helped the property set the all-time record for slot volume in 2025. We also remain excited about additional upcoming CapEx projects in Las Vegas, including a new Omnia Day Club by Tao at Caesars Palace, a complete remodel of the Augustus Tower at Caesars Palace, a full renovation of Palace Court, our high limit table games area and salons, the rebrand of the Cromwell to the Vanderpump Hotel, and the recently announced Project 10 by Luke Combs that will occupy the vacant Margaritaville space at the Flamingo, just to name a few.
“These projects continue our commitment to reinvest in our assets while providing our guests with unique experiences. As we look ahead to the outlook for Las Vegas, we continue to see trends improving sequentially throughout the year, driven by stabilizing leisure trends and a strong group and convention calendar.”
“In Vegas, I would characterise the business as peak events, peak weekends and big conferences. The city and all of our properties are doing quite well.”
The CEO’s comments came as Caesars delivered fourth-quarter results of revenues of $2.9bn versus $2.8bn for the comparable prior-year period and full-year results of $11.5bn versus $11.2bn. The company’s regional revenues were up four per cent year over year, driven by continued strong returns in Danville and New Orleans. Digital for the year was up to $236m versus $117m.
Reeg added: “Fourth quarter consolidated same-store Adjusted EBITDA grew year over year, driven by Caesars Digital, which set a new quarterly record of $85m, stable results in our Regional segment and a quarterly sequential improvement in operating trends in Las Vegas. As we look ahead to 2026, the brick-and-mortar operating environment remains stable, and we are expecting another year of strong Net Revenue and Adjusted EBITDA growth in our Caesars Digital segment. When combined with lower capex and cash interest expense, 2026 is forecasted to deliver strong free cash flow that we expect to use to pay down debt and opportunistically repurchase our common stock.”
The post Caesars CEO hails ‘third or fourth best fourth quarter of all time’ and says there is ‘no crisis’ on The Strip appeared first on G3 Newswire.
Downturn in visitation is ‘normal economic cycle activity’ and will ‘play out’ Having secured its third or fourth best results on The Las Vegas Strip of all time, Caesars Entertainment’s CEO Tom Reeg has rallied that there is ‘no crisis’ on the infamous boulevard. Caesars’ Las Vegas segment delivered a quarterly sequential improvement in occupancy…
The post Caesars CEO hails ‘third or fourth best fourth quarter of all time’ and says there is ‘no crisis’ on The Strip appeared first on G3 Newswire.