Las Vegas resorts make cutbacks amid stalled recovery

Weekday hotel bookings at the Palazzo have been suspended. Photo Credit: Bucchi Francesco/Shutterstock
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Less than two months after reopening, three Las Vegas luxury hotels are cutting back on midweek operations.

The Wynn Las Vegas is closing some casual restaurants on select weekdays, including Charlie’s Bar + Grill and The Buffet. Some fine-dining venues also will operate on a limited basis throughout the week.

At Wynn’s Encore resort, the spa and salon will be closed during weekdays.

Meanwhile, the Venetian Resort has suspended weekday hotel bookings at its Palazzo tower. The Venetian will offer suite reservations exclusively in the Venetian tower on weekdays, while utilizing both towers on weekends.

Most public areas in the Palazzo will be open all week, said parent company Las Vegas Sands.

Along with cutting back operations, Wynn is placing an unspecified number of employees on furlough.

“Although we retained all our people while we were closed, we now know how challenged business volumes in Las Vegas are. We are staffing to the significantly reduced demand,” Wynn Resorts said in a statement.

Wynn employees impacted by the furloughs will continue to receive health benefits through October 31.

The downsizing efforts come as Covid-19 cases climb in the state of Nevada. Hotel occupancy levels in Las Vegas remain low.

Las Vegas Sands president and COO Rob Goldstein said during the company’s Q2 earnings call that its hotels “cannot make money with limited hotel occupancy or a negligible occupancy midweek, with maybe a 50% capacity weekend.” 

“In essence, we’re running a regional casino predicated on drive-in business,” Goldstein added. “We have airlift somewhere around 40% of what it was. We need more customers, and we need lots more. You’re not getting by with 30%, 40% occupancy. If you’re making money on a weekend, which we can, you’re losing it back midweek.”

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