This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Vegas Boom Sees No End

The normal laws of supply and demand don't appear to apply in Las Vegas.

One might expect the opening of new casinos and hotel expansions to dent overall occupancy or pull visitors away from existing properties. But in Las Vegas, flashy new projects tend to boost demand elsewhere, as visitors curious to see the latest entrant stroll down the street and into other casinos.

The next test of this phenomenon comes on April 28, when Wynn Resorts (WYNN) plans to open its ultra-luxurious Wynn Las Vegas resort, adding more than 2,500 new rooms to the Las Vegas Strip.

The resort is the latest project of casino impresario Steve Wynn -- renowned for developing the Mirage and the Bellagio -- and is expected to draw lots of high rollers.

So far, demand at Wynn looks strong, according to Goldman Sachs analyst Steven Kent, who met with Wynn management on a recent Las Vegas trip. Wynn Las Vegas has already booked 60% to 70% of its convention rooms for this year, while 2006 bookings are "ahead of schedule," Kent wrote in a research note. The analyst's own research suggests standard room reservations are going for about $300 a night, well above the company's original budget for around $200. (Goldman Sachs does and seeks to do business with companies covered in its research reports.)

Wynn Resorts did not respond to interview requests in time for this story.

One might expect other companies to be quaking in the face of a slick new resort. Instead, they're voicing optimism.

"Las Vegas thrives because of competition, not in spite of it," said Alan Feldman, spokesman for MGM Mirage (MGG), which expects to soon wrap up its $7.9 billion acquisition of Mandalay Resort Group (MBG). "Every time someone brings something really new into this marketplace, the market grows. When people come to Vegas, they're not isolated in one casino or one hotel. They come and here's this enormous a la carte menu of things to do," Feldman said.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs