Several weeks after Formula 1’s inaugural Las Vegas Grand Prix, hotel performance results are in, and it appears the $500 million weekend event paid off big time for Sin City accommodations.
Held on Nov. 18, the first edition of Formula 1’s Las Vegas Grand Prix weaved its way through the city, with a track passing MGM Resorts International, Caesars Entertainment and Wynn Resorts properties along the Strip.
All three Vegas hotel operators projected big results from the race in third-quarter earnings calls in the weeks preceding the event, with both MGM and Wynn forecasting record revenue.
MGM President and CEO Bill Hornbuckle predicted that the company — which had a rocky third quarter due to a portfolio-wide ransomware attack — would see $16 million in incremental hotel revenue from F1 weekend, 50% more than any other event, with the weekend driving Q4 performance growth.
Wynn Las Vegas President Brian Gullbrants similarly forecasted the hotel would “exceed [its] all-time hotel revenue record by about 50% for the three-day period.”
Wynn declined to release the financial impact of the event weekend, telling Hotel Dive “we generally do not release single-day or weekly financial results.”
However, the company did say, “Wynn Las Vegas was proud to partner with F1, a number of teams, manufacturers and drivers on numerous events during the week, and the reception from our patrons was exceptional. The [Las Vegas Grand Prix] achieved a level of spectacle that can only happen in Las Vegas.”
Citywide performance
Citywide, it’s estimated that hotel room revenue in Las Vegas hit approximately $220 million from Wednesday through Sunday during the week of the event, according to CoStar.
ADR was heightened during the week as well, at the highest from Thursday through Saturday, reaching $629 per night, CoStar data shows. Thursday saw the highest ADR increase, up 207% year over year.
Luxury hotels, which make up more than 40% of the Strip’s hotel room count, saw a more-than-$500 increase in room rates Friday and Saturday night compared to last year, according to CoStar.
The performance results solidify that demand for the event was, in fact, strong — despite some doubts leading up to the weekend.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, told the Clark County Commission earlier this week that F1 “went exceptionally well,” as reported by the Las Vegas Review-Journal. He also noted that hotel room tax revenue generated from the event, which has not been calculated yet, is expected to reach record levels.
A report detailing the full economic impact of F1’s Grand Prix on Las Vegas is in the works, LVCVA told Hotel Dive.
