Venetian Pacing Toward Record Year Amid Las Vegas Tourism Slump

• Another example of casinos that cater to high-end customers finding success as mid-tier venues struggle
• Venetian CEO Nichols says a “deep dive” on fees, costs is being conducted
• Property is operated by Apollo Global Management

The Venetian Resort Las Vegas is pacing toward its best year ever, even as mid- and lower-tier Strip casino hotels struggle amid an ongoing Sin City tourism slump.

Appearing before the Nevada Gaming Control Board (NGCB) for licensing purposes earlier this week, Venetian CEO Patrick Nichols acknowledged there’s a dichotomy playing out on the Strip. It boils down to casino resorts, such as the Venetian, that cater to affluent clientele continuing to thrive while venues with more price-sensitive customer bases struggling as visitation to the US casino hub dips.

We definitely saw some softness in June and July, but in August and September we had our best months from hotel revenue and occupancy in 26 years,” Nichols told the Board. “I think the visitation impact is much more on the mid- and low-end market, but the headlines are still bad for Las Vegas. They’re bad for everybody.”

In March 2021, Las Vegas Sands (NYSE: LVS) announced the sale of the Venetian, Palazzo, and Venetian Expo to Apollo and VICI Properties (NYSE: VICI) for $6.25 billion. Apollo paid $2.25 billion for the operating rights to the venues, while VICI shelled out $4 billion for the real estate.

Venetian Echoing Familiar Refrain

Nichols’ remarks regarding the Venetian’s strong 2025 showing are another example of operators with an emphasis on high-end consumers holding up well while rivals with larger portfolios struggle.

Like Wynn and Encore, Venetian and Palazzo qualify as high-end, luxury venues catering to customers who are less sensitive to macroeconomic headlines.

Since taking control of the Venetian, Apollo has bolstered the venue’s financial standing while taking steps to enhance its image in Las Vegas. The private equity firm has spent about $1 billion sprucing up the Venetian, updating dining options and guestrooms along the way. Nichols told the NGCB that focus will now shift to the Palazzo.

Venetian Conducting ‘Deep Dive’ on Fees

At a time when Las Vegas visitors, regardless of economic stature, are increasingly decrying operators’ attempts to nickel-and-dime them, Nichols said Venetian is conducting a “deep dive” on fee structures, parking costs, and things of that nature.

He added that consumers want value, but value and inexpensive aren’t the same thing.

“It goes back to the question of value and visitation. Value doesn’t necessarily mean cheap, but getting what you paid for. We’re investing in our product to make sure it hits that mark,” he told the Board. “People may come here and say that’s expensive, but say, ‘It was great. I enjoyed my stay and would pay that again for my experience at The Venetian.’”