Analyst Says Fontainebleau Las Vegas and Durango Casino & Resort to Be Last Major Developments in Las Vegas for Little While
The US gaming hub — Las Vegas — has no shortage of casinos, but can handle upcoming additions to the supply. However, CBRE analyst John DeCree in his recent report to clients said that the Fontainebleau Las Vegas and Red Rock Resorts’ Durango Casino & Resort, both slated to open later this year, are likely to be the last major projects to the Sin City casino scene for some time.
According to the analyst, the city can absorb the additions of those venues, but macroeconomic headwinds could put a lid on further new development for the foreseeable future. DeCree noted that given the rising cost of construction and tight credit markets, they suspected development activity would cool off, at least for then; that meant the projects slated to open that year could be the last wave of major developments in Las Vegas for a little while.
Fontainebleau will become the newest opening on the north end of the Strip, while Durango will be launched in an underserved area of Southwest Las Vegas. Later this year the opening of the $2.1 billion MSG Sphere is also expected, but this Las Vegas Strip venue is not a gaming one and may only drive more people to visit nearby properties, like Venetian.
Meanwhile, the development of the Dream Las Vegas on the south end of the Strip is suspended as the company behind the project needs to find finances to pay for work already completed at the venue. Another uncertainty regarding the Sin City is the future of 6.2 acres of land at Las Vegas Boulevard and Harmon Avenue. The site was acquired last year by billionaire businessman Tilman Fertitta, but now may be sold as the owner needs additional profit for potential acquisition of, as rumors say, the NFL’s Washington Commanders or Wynn Resorts.
DeCree is sure Durango will contribute much to the local gambling sector growth because of its favorable geography. The analyst said that although some local casinos may experience some cannibalization, Durango should grow the market.
In other news, NCPG adds new members to its advisory board.