Colliers Gaming Group is a gambling analysis group that is known for accurately predicting the trends of the Las Vegas area. The company recently stated that they believed that $1.5 billion will be invested in the Las Vegas gaming market over the course of the next two years, allowing for strip revenue to continue to grow at a fast pace. The prediction specifically came from Mike Mixer, the head of a new national gaming group that was established last summer by Colliers International. The firm is known throughout the Las Vegas area as being a major company in the hotel, office, and retail sectors. Now, the company is looking to add gaming to that list, and get into the gaming industry as well.
The team includes executives that have been in the area for a long time, including executives Josh Smith, and Gabe Telles, both of whom work for competitor CBRE before coming over to the company. The investments that they are currently anticipating include the sale of a few new casinos as well as construction that will be fired for the updates, the renovation of the Sahara hotel and casino, which is being heavily invested into and renovated on its way to becoming the SLS Las Vegas.
Other huge investments in the coming years will be the transformation of the Imperial Palace, in the Quad, Caesar’s investment into the Linq entertainment promenade at the Flamingo, and the redevelopment of Bill’s Gamblin’ Hall.
With many of the largest casinos throughout the strip and Las Vegas areas seeing a huge increase in revenue this year over previous years, it is no surprise to see predictions of huge money flowing into the region in the coming months. Also, a number of companies that have been previously unable to sell during the downturn in economic times, have found new buyers were willing to invest in the properties. It will be interesting to see if the totals reached the number that was predicted by Mixer, whose predictions are much higher than some of the other analysts in the area. While most are predicting that huge amounts of money will be flowing into the region now that casinos and resorts in the area have once again become profitable for the first time since 2008, not many are willing to go as far as the $1.5 billion estimate that Mixer handed down.
When asked about why his prediction was so bold, Mixer stated that ” The light switch was off in 2009 and 2010. As our visitor volume has rebounded to peak levels or near-peak levels, it’s a strong catalyst that begins the discussion. Seeing our occupancy level at a number that’s the highest in the nation with 151,000 rooms, that’s impressive.”
It is clear that sources of investment from around the United States are once again becoming interested in investing in Las Vegas area properties. In 2008 and 2009, the area saw far less dollars from tourism, the main attraction the Las Vegas. These types of estimations from large, well-known companies have helped to show that the area is beginning their true recovery. Although Nevada still sees foreclosure rates and unemployment rates higher than the rest of the nation, a turnaround in the health of the casinos could greatly help the company.