Last week I posted about the sub-$100 hotel rooms at 4 and 5 star hotels in Las Vegas. With prices being compressed below $100 per night, it makes it difficult for older properties to compete for business with lower rates. Notably Riviera and Hooters are on the brink of bankruptcy while Binion’s has closed.
Globe St. now reports that the Sahara is closing down 2 of its 3 towers until such time as demand picks up.
A publicist for the property tells GlobeSt.com that the rooms in the two oldest towers are being darkened until demand picks back up, and its buffet also will close temporarily. The 1,100-room, 27-story Tangiers Tower, completed in 1988, will remain open along with the casino, she says.
While MGM is excited about the launch of its new City Center project, the huge supply of rooms coming online certainly puts pressure on hotel prices in Las Vegas. As the newer more luxurious hotels compete by lowering prices (and compressing them downward), it looks like the older properties may be squeezed out of business.
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