LAS VEGAS—In the world of vacation hotels, the price of a stay at one of the country’s longest-running hotels has remained the same, even as the market for long-term stays has become increasingly crowded.
This year, long-stay properties like the Hilton Las Vegas and Marriott Las Vegas are seeing more demand than ever, according to industry experts.
But the demand for rooms and suites at these properties has also outpaced supply, and the new wave of long-endurance hotels has a long way to go before they’re ready to be considered long-standing destinations.
For many long-tail hotels, there are no longer room and board available for the price they once were.
“People are moving into the market,” says Jeff Bittner, a managing director at RBC Capital Markets, which tracks hotel industry data.
“There’s more demand for luxury hotels, and those luxury hotels are getting booked faster than they used to be.”
The Long-Term Resorts Industry Is Still a Young Business, But Demand Is GrowingLong-term lodging is an ever-evolving industry.
Hotel industry experts say demand for suites, rooms and rooms per night have continued to increase, even after a brief downturn during the recession.
The market for suites has grown faster than the market overall, which has remained relatively flat.
The average suite price at luxury hotels has jumped almost 10 percent, to $2,000 per night, from $1,500.
This was driven by a growing number of luxury hotel suites that have sold for more than $1 million per night.
The most expensive suite, at the Mandalay Bay Hotel & Casino in Las Palmas, has sold for nearly $1.5 million per week.
That’s up from the $1-1.7 million per month that was the average for suites in its first year of operation in the market.
A suite that was once only available at $1 was now selling for $2 to $3,000 a night.
For luxury hotels that have had to offer rooms per nights for less than $50, the number of rooms per person has also grown by about 20 percent, from about 1,200 to 2,400, according for the industry.
The number of suites per night has increased by more than 15 percent, too.
But suites are not the only way for hotels to keep tabs on how many guests are staying longer than their normal stay.
The demand for room and cabin service has also been growing, too, with rooms being booked for up to 20 hours at a time, according RBC.
There are now more than 8,700 suites in operation at the four long-chain hotels.
That includes more than 3,600 room suites and more than 1,400 cabins.
“The growth is really out of control,” says Rob McElroy, a hotel industry analyst at Wedbush Securities.
“It’s really the same kind of trend that we saw in the industry last year with the peak of the bubble.
This is a long-run industry, and it’s going to continue to grow.
The only thing that’s really changed is demand.”
Long-Term Resort Ownership Is RisingIn order to get to the level where there are enough suites for every room in the room, some long-tied hotel owners have taken a more aggressive approach to attracting guests to their properties.
They’ve started offering rooms for as little as $150 per night at the most, and many are now charging the minimum to stay there for as long as possible.
The biggest of these is Hilton Las, which opened its first hotel in 2019, at a $1 per night rate, and has seen a 30 percent jump in rooms per week in the last year.
“This is the kind of business that we thought we were going to be able to do, but we haven’t really been able to sustain,” says Hilton Las Las Vegas CEO Bill Barone.
He notes that he thinks the long-lasting hotels will continue to be a “major part of the business” of the industry for the foreseeable future.
The Longest-Ever Summer In Las VegasHotel rooms and amenities are often the best way to stay in Las Paradise, says hotel industry veteran and Las Vegas resident Joe Rizzo.
“I think it’s really important for hotels that are in the long term to have some type of resort program,” Rizzos said.
“They’re going to have a long summer.
There will be a lot of things you’re going see going on in the area, and you’re also going to see a lot more tourists.
It’s going a long ways to stay relevant and to stay profitable.”
For example, hotels are looking to extend their summer seasons by a few weeks, starting in October.
They are also looking to add more vacation rooms to their hotels to try and lure more visitors, but not all hotels are as willing