Hotel resorts vs. casinos
Are hotel resorts and casino resorts different? In a single word, YES.
I know that Las Vegas casinos derive more than 50% of the revenue from rooms and food and beverage today, but that does not make them traditional hotels. I also realize that destination resorts are complex operations, with a tremendous amount of moving parts, but they don’t come close to the scale and complexity of casino resorts. Here are some things to consider:
- Casinos are about entertainment, not hospitality.
- Customers want to sleep in hotels; they want to stay up in casinos.
- Customers take their family to hotels; they want to go to a casino with their buds.
- Customers don’t usually want to dine in hotels; they can eat at the best restaurants in the world at casinos, sometimes for free.
- Most hotel lounges are depressing; most casino lounges have more “talent” than a Victoria’s Secret press party.
- Most casino properties produce more EBITDA than most hotel companies.
- You can tell what time it is in a hotel, but you almost never can in a casino.
- Most hotel pools are empty; most casino pools are party central.
- Hotel retail is an afterthought; casino retail is called a “mall.”
- Most exclusive resorts are about privacy; most casino resorts are about socializing.
- You rarely make new friends in a hotel. In casinos you can meet someone and getmarried the same day.
Clearly there are major differences. Why else would MGM and Caesars create non-gaming divisions?