Dive Brief:
- Regional properties were a bright spot for Caesars Entertainment in the second quarter of 2025, as the operator posted decreased revenues in Las Vegas amid softer market demand there, CEO Tom Reeg detailed in an earnings report published Tuesday.
- The hotel operator opened properties in New Orleans and Danville, Virginia, in recent months, which primarily drove year-over-year regional segment net revenue growth of 3.6% in Q2, according to the report.
- In its Las Vegas segment, though, Caesars posted a 3.7% year-over-year decline in net revenues in the quarter. The disappointing results come on the heels of dampened demand in Caesars’ Las Vegas hospitality verticals, Reeg shared, though group demand appears strong going forward.
Dive Insight:
Caesars’ Las Vegas segment was “softer than last year” in the second quarter, as the market’s booking window contracted, Reeg said during an earnings call Tuesday. Caesars’ adjusted EBITDA declined 8% year over year in Las Vegas in the quarter.
“[The] booking window in Vegas is about as short as I’ve seen it at this point,” Reeg said. “Vegas started leaking as of May, [and] that leak accelerated into June.”
Caesars’ Las Vegas segment was down 27,000 room nights in the second quarter, Reeg stated on the call, noting a dip in international visitors.
“International business, particularly Canadian, is softer. If you look at our missing room nights this year, Canadians are a significant piece of that,” Reeg said.
The U.S. is on track to lose $12.5 billion in international visitor spending in 2025 following recent U.S. government actions, the World Travel & Tourism Council reported in May. Elevated macroeconomic concerns are also poised to impact hotel performance this year and next, CoStar and Tourism Economics forecasted last month.
At the NYU International Hospitality Investment Forum in New York City last month, STR President Amanda Hite said hotel demand nationwide for July and August was down compared to 2024 due partly to travelers’ now-shortened booking windows.
Reeg expects Caesars’ third-quarter results in Sin City to be soft as well, though he noted that group demand is promising beyond that.
There is a “very strong group calendar” for Caesars in the fourth quarter of this year as well as the first and second quarters of 2026, according to Reeg.
Meanwhile, in the regional segment, “New Orleans had another very strong quarter, and has picked up the pace in July,” Reeg said. Caesars’ recently opened resort in Virginia “continues to perform extraordinarily well,” he added.
Just after the close of the quarter, Caesars debuted the rebranded Caesars Republic Lake Tahoe Hotel & Casino in Nevada. So far, the operator has been “very pleased with the performance,” according to Reeg.
