Caesars lift resort fees at three Vegas locations
Caesars Entertainment Corp are set to lift resort fees at three of its Vegas properties from today.
The resort fees at on-strip Caesars Palace and Nobu Hotel Caesars Palace will rise from $44.21 per night (incl. tax) to $51.02. Guests of Rio All-Suite Hotel & Casino, which located just off the Las Vegas Strip, will have to pay a resort fee of $39.68 per night (incl. tax), up from $36.28 per night.
Despite Caesars being in the process of selling Rio, it still is raising the resort fee of the property. The Rio is particularly known for hosting the World Series of Poker festival.
A company controlled by a principal of the New York-based Imperial Companies will purchase the Rio for $516.3 million. The Federal Trade Commission have signed off on the deal, which is expected to be finalised by the end of this year, according to Casino News Daily.
Resort fees have been on the up in Las Vegas recently, with MGM Resorts International raising resort fees at the Aria, Vdara and Bellagio to $45 per night in August. In May, Wynn Resorts raised fees at its Wynn and Encore properties by $10 to $45 from $35. However, it must be said that the Wynn did reduce self-parking fees at these resorts at the same time, which was a reversal of their July 2017 introduction.
Increased fees in line with competitors
Of the increased resort fees, Caesars spokeswoman Kristin Soo Hoo told the USA TODAY in an emailed statement that the company “will bring resort fees in line with relevant competitors.”
In August, the organisation said it had no plans to raise resort fees with the company’s CEO, Tony Rodio, repeating that in an August 5 earnings call with investors. He mentioned that he wanted Caesars “I want us to be very judicious and cautious about taking those rates any further. It’s certainly a revenue stream that’s hard to walk away from, and it’s been accepted at this point, but we’re getting pretty high.”
When asked on the seemingly change of tune with the resort fee price rise, the Caesars spokeswoman said that they don’t have anything further to share at this time..
Bipartisan legislation was introduced two weeks ago by Reps. Eddie Bernice Johnson, D-Texas, and Jeff Fortenberry, R-Neb, which seeks to make resort fees more transparent.
The Hotel Advertising Transparency Act of 2019 would make resort fees be more transparent by prohibiting hotels and other short-term lodging establishments from advertising a room rate that doesn’t include all required fees, not including taxes and fees imposed by a government.
The American Society of Travel Advisors (ASTA) sent a letter to two key members of Congress, expressing support for the Hotel Advertising Transparency Act of 2019 (H.R. 4489).
In a letter to Representatives Eddie Bernice Johnson and Jeff Fortenberry, Eben Peck, ASTA executive vice president, advocacy, said, “We believe hidden hotel resort fees” violate the principles of transparency, “and that public sentiment is with us (and with you) on this issue.”
Peck said that according to ASTA’s annual “How America Travels” consumer research study, in 2017, 61% of consumers opposed altogether the practice of hotels adding mandatory resort fees atop advertised rates. “As such, we strongly support H.R. 4489, which would ensure that consumers are shown the full pre-tax price of a hotel room while searching and comparing lodging options for their next trip.”
Caesars will soon become part of a larger casino resort group, where they have agreed to merge with Eldorado Resorts. It is expected that the deal will be finalised sometime in 2020.