July 4 Weekend Room Rates In Las Vegas Now 50% Above Pre-Pandemic Levels

It’s been a long road back for Las Vegas casinos since the pandemic hit last year, but one metric suggests next weekend could be a big weekend for Vegas.

The Numbers: Bank of America analyst Shaun Kelley said Vegas Strip room rates are more than 50% above 2019 levels heading into the holiday weekend. Las Vegas flight searches are also up 2% from two years ago, while last week’s Las Vegas Strip credit card spending was 18% above 2019 levels, Kelley said.

On June 1, the state of Nevada reported more than $1 billion in gross gaming revenue for the month of April, an 11% increase from 2019.

“Overall recovery trends mark new COVID-era highs as leisure travel continues to reign,” Kelley said of the U.S. leisure travel industry.

Macau reported $1.31 billion in GGR for the month of May, a 24.3% month-over-month gain. However, Macau GGR remains well below 2019 levels due in part to travel restrictions.

Hong Kong and Macau government officials recently discussed easing travel restrictions between the two cities, although those talks were derailed after a recent COVID case was confirmed.

Related Link: 4 Reasons Why JPMorgan Upgraded MGM Resorts

How To Play It: Bank of America has the following ratings and price targets on popular casino stocks:

Las Vegas Sands Corp. LVS, Neutral rating, $67 price target.

Wynn Resorts, Limited WYNN, Buy rating, $145 price target.

Caesars Entertainment Inc CZR, Neutral rating, $125 target.

MGM Resorts International MGM, Neutral rating, $46 target.

Benzinga’s Take: Investors will continue to monitor casino trends in Macau, Vegas and other regions of the U.S. to see if last year’s gambling bust turns into a rebound boom this summer. In addition, casino’s will continue to roll out their online sports and casino gambling apps on a state-by-state basis.