Wynn Raising Room Rates, Less People Stay at Wynn, That’s Good

Wynn reported excellent earnings from the first quarter of 2011 and while profits were up a lot there was something that stood out as a good example of why profits rose.

Room revenue in Las Vegas was up 13.4 percent to $88 million during the quarter. The average daily room rate at Wynn and Encore was up 18 percent to $240, but occupancy dipped to 87.9 percent from 89.4 percent during the year-over-year period.

So, while a few less people are staying at the hotel (-1.5%) the people staying at Wynn are paying more (13.4%).  That’s not much of a decrease in occupancy and is a good example of why profits are increasing.  It will be interesting to see if other casino companies show similar results.

The following two tabs change content below.
Las Vegas Writer, Marketer, Consultant. I love Vegas and everything about it. When in Vegas do 3 things: eat, drink & gamble.