Tom Reeg, CEO of Caesars Entertainment, told CNBC on Thursday that the return of business conventions to Las Vegas looks promising after a slowdown induced by a coronavirus pandemic.
“Our advance bookings for both the second half of this year and [2022] they are extremely strong, “Reeg said in an interview with CNBC’s Countess Brewer on” The Exchange. ” Business groups want to come back. We just have to make sure we can accommodate them, ”Reeg added.
Caesar approaches future events with more uncertainty than before the pandemic, according to Reeg. One on the short-term horizon is the world of concrete, which will be held at the Las Vegas Convention Center in early June. The event for the concrete and masonry industry has attracted more than 60,000 people in years prior to the covid.
“We presume more wear and tear than normal for any group that is booked. We just don’t know how quickly people will come back,” Reeg said.
Caesars shares rose nearly 4% in Thursday’s session, to about $ 96 a piece. Shares have risen 28% so far this year and 425% more in the last twelve months.
Las Vegas was hit hard by the pandemic, as health restrictions aimed at curbing the spread of the virus led to the mandatory closure of hotels, casinos and restaurants in the tourism-dependent city. After a relaxation, Nevada Gov. Steve Sisolak implemented stricter virus mitigation measures in November in response to rising coronavirus cases.
“The case rates here were pretty scary, to be frank. As the cases were withdrawn, we’ve seen the restrictions go down and we’ve seen business return,” Reeg said, adding that he expects continuous improvement. of the public health situation may lead to “loosening more that would allow us to offer full services to all our upcoming group businesses.”
“I’m sure … you’ll be wearing masks in the foreseeable future,” he added.
As vaccinations against Covid have accelerated this year, casino operators are seeing positive signs for their businesses. Last month, Penn National Gaming CEO Jay Snowden told CNBC he saw “revenue and volumes he hadn’t seen in years.”
Caesars, which he says is the largest casino and entertainment company in the country, began really strong demand starting in February, Reeg said. On its regional properties, located in numerous states, including Indiana, Iowa and Arizona, the recovery has been “extraordinary,” Reeg said. “There’s a lot of accumulated demand.”
U.S. public health officials have continued to stress to Americans that, despite advances in vaccines, the country’s Covid recovery still faces challenges, such as highly contagious variants. The trajectory of the pandemic in Michigan, in particular, is worrisome.
“This is a critical moment in our fight against the pandemic,” CDC director Dr. Rachelle Walensky said last week. “We can’t afford to lower our guard.”