Analysts flag a possible second-quarter inflection point for the Las Vegas Strip, as room metrics strengthen following a slow start to the year.
Hotel performance indicators on theStrip showed measurable improvement in February, with revenue per room trending up 23% and average daily rates up 8%, according to survey data cited by Truist Securities.
Occupancy was tracking 13% higher for the month, following January gains in which revenue per available room rose 4.5% and average daily rates increased 7% for the first time in eight months. Convention attendance in January climbed 7%.
Those hospitality gains contrasted with gaming results released by the Nevada Gaming Control Board, which reported an 11% year-over-year decline in January Strip gaming revenue. Visitation data from the Las Vegas Convention and Visitors Authority showed a smaller contraction, with traffic down 2.2%, the narrowest decline recorded in a year.
Barry Jonas of Truist Securities said underlying gaming trends appeared mixed. January Strip revenue fell “on very soft baccarat,” though he noted that when normalized, the figure was up 4%. Excluding baccarat, total casino win rose 0.5%, a metric commonly used to assess broader gaming health.
Slot performance showed growth despite softer headline revenue. According to figures cited from the Nevada Gaming Control Board, slot gaming revenue increased 3% year over year in January, as handle expanded 7% while hold declined by 35 basis points.
Daniel Politizer of J.P. Morgan said the 7% increase in slot handle marked the strongest growth rate since September 2025. He added that a 9% rise in table drop represented the largest increase since January 2025.
Outside the Strip, local casinos also recorded a 3.5% year-over-year revenue decline in January. Jonas said that on a normalized basis, those properties were up 3.5%, indicating a stronger adjusted performance than the headline result suggests.
Regardless of the recent improvements in room rates, occupancy, and convention traffic, Jonas said earnings expectations remain restrained in the near term. “Despite these improvements, we still think most operators are not expecting Q1 EBITDAR growth, and we are looking closely at Q2 for a potential inflection,” Jonas said.
Original article: https://www.yogonet.com/international/news/2026/03/04/117867-analysts-flag-possible-secondquarter-inflection-for-las-vegas-strip-as-room-metrics-strengthen
