Las Vegas hotels are facing significant challenges this summer, as evidenced by notable year-over-year declines in performance compared to other major U.S. markets. Factors such as reduced international visitor numbers and ongoing economic uncertainty have intensified the situation.
According to preliminary data from STR, Las Vegas experienced a staggering 14.9% drop in occupancy in June, which is set to be the largest monthly decline of the year. This trend continued into July, where the week ending July 5 recorded an occupancy decline of 16.8%, bringing the rate down to 66.7%. Additionally, revenue per available room (RevPAR) plunged by 28.7%, down to $102.75. Without the impact of Las Vegas, the U.S. hotel industry would have shown relatively flat RevPAR performance, rather than this decline.
The troubling performance is part of a broader trend, as May figures from the Las Vegas Convention and Visitors Authority (LVCVA) reported a 6.5% decrease in visitor volume year-over-year, totaling 3.4 million. “We are witnessing a slowdown,” remarked Stephen Miller, director of research at the Center for Business and Economic Research at the University of Nevada, Las Vegas. He highlighted a marked increase in uncertainty compared to six months ago, emphasizing a notable decline in international visitors, particularly from Canada.
Data from the U.S. International Air Travel Statistics program reveals that Las Vegas has experienced consistent drops in overseas arrivals throughout 2025, with only January showing growth over the previous year. The situation worsened in June, with international visitor arrivals decreasing by 13.2%. John DeCree, head of institutional investor research at CBRE Capital Advisors, noted similar trends in international arrivals but suggests that these fluctuations are part of a natural market cycle. He added that Las Vegas typically sees slower business during the hotter months, allowing for a return to normal seasonal patterns following a few years of pent-up demand.
LVCVA CEO Steve Hill echoed these sentiments, stating that the current economic difficulties are a national issue rather than specific to Las Vegas. He attributed the drop in leisure demand to low consumer confidence, acknowledging that budget-conscious travelers are hesitant to spend. To combat these challenges, the LVCVA has increased its annual marketing budget by 30%, the largest percentage and dollar increase in its history. Hill indicated that this marketing push aims to promote the message that Las Vegas can cater to all budgets, emphasizing a tripling of collaboration with online travel agencies (OTAs).
### Las Vegas Hotels Promote Value Packages
In response to these declining metrics, several Las Vegas hotels are implementing promotional strategies. Resorts World Las Vegas recently introduced the “All Resort, No Fees” package, which waives resort fees until early September, offering complimentary self-parking and nightly resort credits of $50 for its Hilton and Conrad hotels, and $75 for the upscale Crockfords hotel.
“We realized early on that we needed to get creative when we noticed some softness in bookings,” said Shannon McCallum, vice president of hotel operations at Resorts World Las Vegas. She highlighted the effectiveness of the resort’s complimentary parking offer, which has particularly attracted local visitors, and suggested that it may be extended.
Additionally, the resort has launched daytime initiatives like a $45 prix fixe “power lunch” menu, happy hours, and pool day passes ranging from $30 to $40. Hill pointed out that Las Vegas properties are skilled at adapting their strategies during challenging periods, with different venues responding in various ways.
Other value-driven promotions include Sahara Las Vegas presenting guests with options to either eliminate resort fees or receive a $50 daily dining credit. Caesars Entertainment is offering a 15% discount on rooms and 20% off spa services and attraction tickets. The STR is providing a Summer of Value package with midweek rates starting at $49 and weekend rates at $99, which includes resort fees, taxes, and admission to the Tower Observation Deck for two. Meanwhile, Circa Resort & Casino’s $400 All-In Summer Package features a two-night stay, $200 in dining and beverage credits, along with a daybed reservation.
#### Looking Ahead: Optimism for Late 2025 and Beyond
Despite current challenges, industry analysts remain hopeful about the future. Hill indicated that Las Vegas has a robust schedule of meetings and trade shows from September through 2026, with May convention attendance increasing by 10.7% year-over-year, offering a bright spot amid waning leisure demand.
DeCree noted strong forward bookings for late 2025 and into 2026, particularly in events and groups, which represent a larger segment of profit margins in Las Vegas than short-term leisure travelers. “If we start to see a negative trend in group booking pace or room rates, that would raise concerns,” he cautioned.
For visitors considering a trip to Las Vegas, the city’s hotels and resorts are adapting with compelling offers and promotions, aiming to attract a diverse array of travelers while navigating an unpredictable economic landscape.
