Formula 1 Event Drives Surge in Las Vegas Hotel Room Rates

In November, Las Vegas experienced increased hotel room rates driven by the Formula 1 event, while maintaining steady visitation at 3.3 million tourists and seeing a 23% surge in gaming revenues on the Strip.

Formula 1 Event Drives Surge in Las Vegas Hotel Room Rates

In November, Las Vegas hotels experienced a significant spike in room rates, with the average daily rate exceeding $249, marking a 34% increase from November 2022, according to the latest numbers released by tourism officials.

The surge in rates was largely credited to the Formula 1 racing event, specifically the Las Vegas Grand Prix held in mid-November, which drew in tens of thousands of visitors from around the world. This influx of international visitors contributed to the heightened demand for accommodations and subsequently drove up the room rates across various hotels in the city.

Despite the substantial increase in room rates, the overall visitation to Las Vegas remained relatively stable, with a modest 1% increase from November 2022, resulting in just under 3.3 million tourists visiting the city last month. This indicates that while the surge in room rates may have been driven by a specific event, it did not deter visitors from traveling to Las Vegas during the period.

Furthermore, gaming revenues on the Strip in November reported a notable 23% rise compared to the same month the previous year, according to the Las Vegas Convention and Visitors Authority. This suggests that the increase in visitation and the corresponding rise in gaming revenues point to a positive outcome for the city's tourism and hospitality industries during this period.