Caesars CEO Sees No Crisis in Las Vegas, Only Seasonal Patterns

Las Vegas has never stood still throughout its history. Resorts have come and gone, with business models constantly shifting to match hospitality trends. 2026 may mark another turning point for the Strip. Room rates have declined, guest numbers are lower, and international visitors are increasingly rare. However, Caesars Entertainment CEO Thomas Reeg insists that fears of a long-term slump are unfounded.

Quieter Periods Remain Challenging for Operators

In Q4 2025, Caesars’ hotel occupancy averaged 92%, down from 96.5% the previous year. Average daily room rates declined roughly 9%. The figures sparked fears of an economic downturn. However, Reeg believes these metrics are just signs of a market readjusting after several years of extraordinary demand.

There is nothing unusual happening here. I expect it to recover with time, and we are already seeing that happen over the fourth quarter and into the first quarter.

Tom Reeg, Caesars Entertainment CEO 

The Caesars CEO noted that Q4 was one of the most profitable in the company’s history, thanks to high-profile events like the F1 Grand Prix and the Super Bowl. He noted that the company achieved 20,000 room bookings during the quarter while maintaining 92% occupancy. He denied any concerns about an upcoming crisis, insisting that the figures reflected normal cyclicality.

There is really no crisis happening in Vegas. It is normal cyclicality, and it will play itself out. Center Strip is holding up quite well.

Tom Reeg, Caesars Entertainment CEO 

The Strip usually operates at full capacity during major sporting events or marquee concerts. Suites are booked months in advance, restaurants run at capacity, and premium packages command top dollar. The city generates most of its income through these peak periods. However, the periods between these surges are where the true challenge lies.

Vegas Remains Highly Adaptable

According to Reeg, demand during slower periods can dip to 80%, and then spike again during the next event, creating significant operational challenges. Resorts are experimenting with targeted promotions, bundled experiences, and selective rate adjustments to smooth the curve. These patterns are largely due to Vegas’s efforts to expand its appeal beyond gaming.

Sports franchises, music residencies, and immersive productions now share the spotlight with the Strip’s casino floors. The proposed Oakland Athletics ballpark on the former Tropicana site is a perfect example of this shift. Sportsbooks have also evolved into social spaces, especially during football season and March Madness. Chances are, if you are looking for a specific kind of entertainment, you will find it in Vegas.

While Reeg’s optimism is not unfounded, the Strip is facing some real challenges. International tourism remains uneven. Canadian visitors, once a common sight, are now dwindling. Critics also argue that Las Vegas has become too expensive, particularly compared with a decade ago. Reeg counters that the product is now much better. The next phase of growth will depend on whether visitors believe those offerings are worth the cost.