Las Vegas Sands is keeping its Palazzo hotel tower closed through the week, the company explaining that the decision is due to limited demand in wake of the COVID-19 pandemic.
Effective July 21, The Palazzo hotel will not be available for midweek occupancy. The Strip resort has more than 3,000 suites.
[The Palazzo will keep] most public areas open,” said Sands executive director of public relations Keith Salwoski. The property’s restaurants, casino, parking garage, and Grand Canal Shoppes will all remain open. Only the hotel rooms will be shuttered through the week.
Salowski added to the Las Vegas Review-Journal that keeping the Palazzo rooms dark during the week is a “response to travel demand for the summer.”
The Palazzo’s accompanying Venetian will remain open seven days a week. The Venetian is the older of the two sister properties, first welcoming guests back in 1999. It has more than 4,000 suites. The Palazzo opened in 2007.
Upward COVID Cases, Downward Demand
Nevada casinos were allowed to reopen June 4, but under strict health safety measures tailored at preventing an uptick in the number of coronavirus cases in the Silver State.
However, after the state has set several unwelcomed daily records regarding single-day new COVID-19 cases, Nevada Gov. Steve Sisolak (D) ordered last week all bars, pubs, and taverns in several counties that do not serve food to close. The directive impacts Nevada’s restricted gaming licensees, which include watering holes that are allowed to have up to 15 slot machines.
Nevada has 28,515 confirmed coronavirus cases, and 593 deaths. The state posted its highest one-day total number of cases of 1,004 on July 9. It’s the first time more than 1,000 Nevadans have tested positive in a 24-hour period.
Nevada’s concerning trend is leading to more convention business losses. Last week, G2E announced it was canceling the gaming industry tradeshow, meaning the typical 30,000 people who attend the exhibition each year won’t be convening in Southern Nevada.
G2E was scheduled for October 5-8 at the Sands Expo & Convention Center, which is connected to the Palazzo and Venetian towers. G2E is just one of several large conventions, often planned through the week, to call off its Las Vegas plans due to coronavirus.
Room Rate Discounts
With the number of overnight guests in Las Vegas down for the foreseeable future, Las Vegas Sands is offering those who do arrive in Southern Nevada deals for staying at its Strip complex.
Per Las Vegas Sands’ 2019 annual report, the average daily room rate for The Venetian and Palazzo properties last year was $251 — exclusive of taxes and resort fees. The average nightly rate in August for a Luxury King room at The Venetian is going for just $138.54 — a 45 percent discount.
In Sands’ “Risks Associated with Our US Operations” forecast issued to investors, the company explained, “If demand for hotel rooms does not keep up with the increase in the number of hotel rooms, competitive pressures may cause reductions in average room rates.”
Coronavirus has halted demand, and therefore cut room rates.
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