Summary
- More rooms will be upgraded at The Strat, with renovations costing an extra $30 million in 2023
- The renovations are in preparation for F1, Super Bowl, and upcoming conventions
- Occupancy at The Strat is expected to return to 2019 levels by the end of 2023
Golden Entertainment will renovate more rooms at The Strat (formerly the Stratosphere) in preparation for upcoming big sporting betting events in the US , including F1 in November this year and the Super Bowl which bettors will be able to bet on in February 2024. The gaming company revealed its renovation plans for the Las Vegas property during a conference call this week where it also reported a record $1.1 billion in revenue for the entire 2022.
Golden Entertainment CEO and Chairman Blake Sartini said their latest results are encouraging and going forward, they’re banking on the strength of their Las Vegas properties, including The Strat.
More Rooms Up for Renovation at The Strat
Golden Entertainment President and CFO Charles Protell said they’re aiming to bring The Strat’s revenue into line with pre-pandemic levels, though the casino-hotel performed well in the past year, reporting a 3% increase in revenue for Q4, with an occupancy rate of 77%.
Protell said they’re still seeing a lot of potential for improvement at The Strat, citing 2019 results wherein the property’s occupancy was stable at almost 90%. If the Las Vegas venue manages to reach the same occupancy rate this year, it would generate an additional $30 million in revenue, and nearly $20 million in adjusted earnings, based on current room rates, guest spend, and margin flow through, Protell said.
Golden Entertainment already spent $10 million on renovations at The Strat in 2022 and the company is looking to invest an additional $30 million in 2023 to renovate 537 more rooms and other amenities at the property, with improvement works expected to be completed in the first half of the year.
The Strat is now focused on attracting a more diverse customer base, especially higher-paying clients. One way to do that is to build a “competitive product”, Protell said, and they’re doing exactly that by making huge improvements to the property’s hotel accommodation. The plan seems to be working, as the renovated rooms have so far generated a $15 to $20 premium for The Strat, according to Protell.
Golden Entertainment is sticking to that strategy for The Strat as the property prepares for upcoming major events, such as F1, Super Bowl, March Madness and plenty of conventions.
Occupancy to Return to 2019 Levels by December 2023
Golden Entertainment is confident occupancy at The Strat will return to pre-pandemic levels by the second half of 2023, as the meetings and events industry continues to recover, with international travel fully returning as well. The F1 race in November will also be a huge contributing factor.
About the Author
