Las Vegas grapple with steep occupancy decline

LAS VEGAS – Las Vegas hotels are posting some of the steepest year-over-year performance declines among major U.S. markets this summer as international visitor weakness and economic uncertainty take a toll.

Preliminary STR data indicates Las Vegas occupancy fell 14.9% in June, which, if actualized, would mark the city's deepest monthly decline so far this year.

The deterioration continued into July, with the week ending July 5 showing Vegas with the worst declines across the top 25 U.S. markets: Occupancy fell 16.8%, to 66.7%, and revenue per available room (RevPAR) plunged 28.7%, to $102.75, according to STR.

The market’s poor performance is so pronounced, it’s dragging down overall U.S. hotel metrics: Without Las Vegas, the U.S. would have seen roughly flat RevPAR performance rather than a decline for the week ending July 5, STR said.

The weakness builds on concerning trends from May, the most recent data available from the Las Vegas Convention and Visitors Authority (LVCVA), which showed visitor volume declined 6.5% year over year, to 3.4 million.

Las Vegas is typically seasonally slower in the hotter spring and summer months, and we continue to see the return of normal seasonality after several years of elevated pent-up-demand spending.

John DeCree

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“I would call it a slowdown,” said Stephen Miller, director of research at the Center for Business and Economic Research at the University of Nevada Las Vegas, who closely monitors the market’s performance indicators. “The level of uncertainty is dramatically higher today than it was six months ago.”

Miller said a drop in international visitors, particularly from Canada, was a primary culprit.

Based on data from the U.S. International Air Travel Statistics program, Las Vegas has seen consistent declines in overseas arrivals throughout 2025, with only January posting growth compared with the prior year. The drop-off accelerated in June, when international visitor arrivals fell by 13.2%.

John DeCree, head of institutional investor research at CBRE Capital Advisors, has observed similar patterns in international arrivals, though he sees the broader trends as part of a natural market cycle.

“Las Vegas is typically seasonally slower in the hotter spring and summer months, and we continue to see the return of normal seasonality after several years of elevated pent-up-demand spending,” he said.

LVCVA CEO Steve Hill echoed that sentiment, saying economic headwinds are “a national phenomenon” and not Vegas-specific, citing the low levels of consumer confidence dampening leisure demand.

“The uncertainty that’s been added lately has caused those who are budget conscious, which is most of us, to think twice,” he said, adding that the LVCVA had expected a “relatively soft summer” as early as a few months ago. The organization has responded with a 30% boost in annual marketing spend, approved in late May. According to Hill, that jump represents the biggest increase both in percentage and dollar terms the organization has ever implemented.

The marketing push emphasizes that “Las Vegas has an offering for every budget,” Hill said, while the organization has also tripled its investment with some OTAs.

Las Vegas hotels launch promotions

Some Las Vegas properties are rolling out their own promotional strategies.

Last month, Resorts World Las Vegas unveiled the All Resort, No Fees package, which eliminates resort fees through early September. The package includes complimentary self-parking and nightly resort credits of $50 at the 3,506-room property’s Hilton and Conrad hotels and $75 at its high-end Crockfords hotel.

“We knew very early on, when we started to see some softness, that we were going to need to get innovative,” said Shannon McCallum, vice president of hotel operations at Resorts World Las Vegas, adding that the resort’s complimentary parking offer has been especially effective at luring locals and will likely be extended.

If we started to see a negative trend in group booking pace or room rates, that would be more concerning.

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McCallum said the package has had “a very large impact,” citing positive feedback from guests and across social media.

Seeking to capture more daytime revenue, the resort expanded programming with “power lunch” offers featuring a $45 prix fixe menu at select restaurants, happy hours across multiple venues and day passes for pools priced at $30 to $40.

Hill said that Las Vegas properties are adept at adjusting strategies during softer periods.

“Our resort partners are pretty exceptional at understanding how to turn the knobs in order to achieve the outcome that’s possible in the current environment,” he said. “And different properties are reacting differently.”

Other value-focused strategies include the Sahara Las Vegas giving guests the choice to eliminate resort fees or receive a $50 daily dining credit and Caesars Entertainment tendering a 15% discount on rooms and 20% off spa services and attraction tickets.

The Strat introduced a Summer of Value package with $49 midweek rates and $99 weekend rates that include resort fees, taxes and Tower Observation Deck admission for two, while Circa Resort & Casino’s $400 All-In Summer Package includes a two-night stay, $200 in dining and beverage credits and a daybed reservation.

Looking ahead, industry insiders remained optimistic about the fall and winter. Hill said the city’s meetings and trade show schedule from September through 2026 is “very strong,” and in May convention attendance was up 10.7% year over year, offering a bright spot amid the leisure softness.

DeCree said that the city’s forward bookings look strong for the end of 2025 and into 2026, citing strength in events and groups, which he said is “a much bigger piece of the profit pool in Vegas than short-term leisure travelers.

“If we started to see a negative trend in group booking pace or room rates, that would be more concerning.”