The Streak Continues · Las Vegas Club Casino Aug 2015 410 $40,000,000 $98,000 Downtown Casino...
Transcript of The Streak Continues · Las Vegas Club Casino Aug 2015 410 $40,000,000 $98,000 Downtown Casino...
Summary StatisticsQ2 2016 Las Vegas Market Q2-2015 Q1-2016 Q2-2016
Room Inventory 146,750 146,340 146,340
Room Occupancy 90.1% 87.9% 89.7%
Average Daily Rate $121.06 $129.63 $130.64
Revenue Per Available Room $109.15 $113.70 $117.18
Revenue Per Available Room (RevPar)
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016
RevPAR
Market IndicatorsRelative to prior period Now Future
Room Inventory
Room Occupancy
Average Daily Rate
Revenue Per Available Room
*Projected
+3.9%
CONVENTIONAttendance
AIRPassengers
-1.2
RevPAR
-9.1%
Q22016
The Streak Continues
Research & Forecast Report
LAS VEGAS | HOTELQ2 2016
> Southern Nevada remains a popular destination; visitor volume continues to be strong
> Lower room inventory is translating into better performance for existing resorts
> Hospitality development may increase in 2017
At mid-year, 2016 is proving that Las Vegas is still on a winning streak. Visitor volume in the first five months of 2016 is an improvement over the first five months of 2015, and room occupancy, average daily room rate (ADR) and revenue per available room (RevPAR) are up as well, year-over-year.
While gaming revenue continues to lag behind its peak levels in 2006/2007, it has shown improvement since the Great Recession, though not as much as we would like to see. Gaming revenue has averaged year-over-year growth of negative 0.6 percent for Clark County and negative 1.5 percent growth on the Las Vegas “Strip” so far in 2016. In April 2016, Downtown gaming revenue decreased by 13.5 percent year-over-year, and the Boulder Strip, which primarily plays host to local casino patrons, posted negative 18.9 percent gaming revenue growth.
Economic Indicators
SalesVolume
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016
Sales Volume
Sales vs.Price Per Unit
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016
Sales vs. Price Per Unit
Sales (Units) Average Price Per Unit
Market HealthData Point 2016 YTD* 2015 2014 2013 2012
Visitor Volume (Millions) 18.0 42.3 41.6 39.9 39.7
Room Occupancy 88.3 87.7% 86.8% 84.3% 84.4%
ADR 128.45 $119.94 $116.48 $110.64 $108.02
RevPAR 113.26 $105.21 $101.05 $93.27 $91.17
Convention Attendance (Millions) 3.05 5.71 5.17 5.11 4.93
Passengers McCarran Int’l (Millions) 19.1 45.3 42.9 41.8 41.7
Gaming Revenue (Clark County, Billions) 4.1 $9.6 $9.6 $10.0 $9.4
Gaming Revenue (“Strip”, Billions) 2.6 $7.5 $6.4 $6.5 $6.2
Data from Las Vegas Convention & Visitors Authority
* Data from May
2 Las Vegas Research & Forecast Report | Q2 2016 | Hospitality | Colliers International
Room inventory remained static in the second quarter, and no additional closures are planned for 2016. The 201 room Lucky Dragon, under construction in the Resort Corridor, should be completed before the end of 2016, and the 124 room Residence Inn under construction in South Las Vegas as well. These two properties would represent very mild inventory growth for Southern Nevada. The much larger Resorts World Las Vegas property is currently under construction, with completion of the first phase planned for 2017.
Southern Nevada’s non-gaming construction boom has continued in 2016, with recent additions to Southern Nevada’s entertainment complex including Topgolf International’s four-story golf entertainment complex at the MGM Grand, a 415,085 square foot IKEA store along the I-215 Beltway, new retail fronting the Treasure Island, the Rock N Rio festival, and the 20,000 seat MGM Resorts International Arena behind New York-New York and Monte Carlo which will one day host Las Vegas’ NHL hockey franchise. Still to come are a $75 million renovation of Caesars Palace’s original Roman Tower, a new 5,000-seat theatre at the Monte Carlo and a $47 million renovation of the Thomas & Mack Center. The LVCVA is currently undertaking a major expansion of the convention center to keep Southern Nevada at the forefront of convention destinations in the United States. In all, we expect approximately $4.7 billion will have been spent on Southern Nevada’s hospitality market between 2014 and the end of 2016, before another $4 billion is spent developing the first phase of Resorts World Las Vegas in 2017.
Hospitality sales appeared to be cooling in 2016 compared to the past three years. A total of 1,261 rooms sold in Southern Nevada in the first half of 2016. Sales volume in the first half of 2016 was $90.2 million and the average sales price was $72,000 per room. Final sales volume in 2015 was $1.2 billion in 14 sales totaling 8,586 units with an average sales price of $143,000 per room. 2015 saw as many rooms selling as 2014, but at a lower sales volume.
While Southern Nevada’s hospitality market continues to perform well, the hospitality real estate market seems to be slowing down. 2015 saw some major sales in the hospitality market, including the Las Vegas Club in Downtown and such “Strip” properties as the Riviera and Tropicana.
3
Hospitality Sales*
Year Volume Units Sold Price/Unit
2016 YTD $90 MM 1,261 $72,000
2015 $854 MM 7,558 $113,000
2014 $1,864 MM 7,749 $241,000
2013 $55 MM 1,129 $49,000
2012 $121 MM 2,613 $46,000
2011 $3,009 MM 7,369 $408,000
2010 $858 MM 8,883 $97,000
2009 $1,226 MM 4,913 $249,000
* Only includes properties with 100 or more units, arm’s-length sales
“Hospitality sales appeared to be cooling in 2016 compared to the past three years.”- John Stater, Research & GIS Manager
3 Las Vegas Research & Forecast Report | Q2 2016 | Hospitality | Colliers International
From 2013 to 2015, Southern Nevada saw the sale of over 16,000 rooms, with a sales volume of almost $3 billion. The market now appears to be taking stock and preparing for the next phase, which may involve inventory expansion to go along with the entertainment venue expansion that has occurred since the end of the Great Recession.
NORTHLAS VEGASNORTHWEST
WESTCENTRAL
SOUTHWEST
SOUTHLAS VEGAS
EASTLAS VEGAS
HENDERSON
AIRPORT
SUMMERLINDOWNTOWN
THE“STRIP”
RESORTCORRIDOR
15
215
215
95
95
Significant Hotel Sale Activity
Renaissance Las Vegas HotelResort Corridor - $111,000,000
548 Units - $203,000/Unit
July 2015
Full Service
Westin - Las Vegas CasuarinaResort Corridor - $67,000,000
826 Units - $81,000/Unit
January 2016
Casino Hotel
Riviera Hotel*Strip - $182,500,000
2,100 Units - $87,000/Unit
February 2015
Casino Hotel
Tropicana Las VegasStrip - $360,000,000
1,497 Units - $240,000/Unit
December 2015
Casino Hotel
Hooters Casino HotelResort Corridor - $54,000,000
696 Units - $77,000/Unit
May 2015
Casino Hotel
4 Las Vegas Research & Forecast Report | Q2 2016 | Hospitality | Colliers International
Sale Activity Continued
Property Name Sale Date Units Price Price/Unit Submarket Property Type
Westin Lake Las Vegas Dec 2015 493 $25,000,000 $51,000 Henderson Full Service
Las Vegas Club Casino Aug 2015 410 $40,000,000 $98,000 Downtown Casino Hotel
Element Home Apr 2016 123 $17,100,000 $139,000 Summerlin Full Service
Holiday Home May 2016 211 $6,500,000 $31,000 South Vegas Full Service
Rodeway Inn Jan 2016 101 $6,100,000 $60,000 Resort Corridor Limited Service
* Indicates a redevelopment site
Market Comparisons - Las Vegas
Hospitality Market
TYPE TOTAL INVENTORY UNITS SOLD SALES VOLUME PRICE/UNIT COMPLETIONS THIS QUARTER COMPLETIONS YTD PLANNED
DOWNTOWN
CAS 7,589 - $0 n/a - - - FS - - $0 n/a - - - LS 938 - $0 n/a - - - Total 8,527 - $0 n/a - - -
LAS VEGAS “STRIP”
CAS 79,309 - $0 n/a - - 3,500 FS 7,543 - $0 n/a - - - LS 581 - $0 n/a - - -
Total 87,433 - $0 n/a - - 3,500
RESORT CORRIDOR
CAS 11,273 - $0 n/a - - 201 FS 5,091 - $0 n/a - - 211 LS 6,285 - $0 n/a - - - Total 22,649 - $0 n/a - - 412
AIRPORT
CAS - - $0 n/a - - - FS - - $0 n/a - - - LS 841 - $0 n/a - - 131 Total 841 - $0 n/a - - 131
EAST LAS VEGAS SUBMARKET
CAS 1,913 - $0 n/a - - - FS - - $0 n/a - - - LS 2,571 - $0 n/a - - - Total 4,484 - $0 n/a - - -
HENDERSON SUBMARKET
CAS 2,281 - $0 n/a - - - FS 868 - $0 n/a - - - LS 1,480 - $0 n/a - - - Total 4,629 - $0 n/a - - -
NORTH LAS VEGAS SUBMARKET
CAS 1,021 - $0 n/a - - - FS - - $0 n/a - - - LS 1,611 - $0 n/a - - - Total 2,632 - $0 n/a - - -
SOUTH LAS VEGAS SUBMARKET
CAS 2,853 - $0 n/a - - - FS 2,704 211 $6,500,000 $30,806 - - - LS 1,206 - $0 n/a - - 124 Total 6,763 211 $6,500,000 n/a - - 124
SUMMERLIN SUBMARKET
CAS 1,789 - $0 n/a - - - FS 123 123 $17,100,000 $139,024 - - - LS 857 - $0 n/a - - - Total 2,769 123 $17,100,000 n/a - - - WEST CENTRAL SUBMARKETCAS 3,425 - $0 n/a - - - FS - - $0 n/a - - - LS 2,188 - $0 n/a - - - Total 5,613 - $0 n/a - - - MARKET TOTALCAS 111,453 - $0 n/a - - 3,701 FS 16,329 334 $23,600,000 $70,659 - - 211 LS 18,558 - $0 n/a - - 255 Total 146,340 334 $23,600,000 $70,659 - - 4,167
QUARTERLY COMPARISON AND TOTALS
Q2-16 146,340 334 $23,600,000 $70,659 0 0 4,167 Q1-16 146,340 927 $66,590,396 $71,834 0 0 4,925 Q4-15 146,340 2,241 $392,913,841 $175,330 0 2,376 3,634 Q3-15 146,340 958 $151,000,000 $157,620 -410 2,376 3,634 Q2-15 146,750 2,499 $442,001,950 $176,872 -2,988 2,786 4,169 Q1-15 149,738 2,888 $243,075,470 $84,167 -202 -202 4,124 Q4-14 149,940 128 $5,375,000 $41,992 0 1,955 4,124
5 Las Vegas Research & Forecast Report | Q2 2016 | Hospitality | Colliers International
Copyright © 2016 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
About Colliers InternationalColliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.
For the latest news from Colliers, visit Colliers.com or follow us on Twitter (@Colliers) and LinkedIn.
502 offices in 66 countries on 6 continentsUnited States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112
$2.5billion in annual revenue*
2.0billion square feet under management
16,000professionals and staff
*All statistics are for 2015 and include affiliates.
COLLIERS INTERNATIONAL | LAS VEGAS3960 Howard Hughes ParkwaySuite 150Las Vegas, Nevada 89169 | USA+1 702 735 5700www.colliers.com/lasvegas
MARKET CONTACT:Mike MixerExecutive Managing Director | Las Vegas+1 702 735 [email protected]
John StaterResearch & GIS Manager | Las Vegas+1 702 836 [email protected]