What‘s the Entire Las Vegas Strip Worth in 2023? Let‘s Crunch the Numbers
As a longtime Vegas fanatic, I‘m constantly asked what the world-famous Las Vegas Strip is worth as a whole. It‘s the epicenter of gaming, with over $8 billion in revenue last year! Between the mega casinos, hotels, clubs and endless amenities, what does this iconic 4-mile stretch of real estate fetch on the market?
After digging into the recent sales figures, profit numbers and growth projections, I estimate the combined market value of the Las Vegas Strip at approximately $55-60 billion. Let‘s walk through how I arrived at that valuation…
Recent Land Deals Suggest $4 Million+ per Acre
The latest land deals on the Strip give us a solid baseline for pricing. In 2022, 17 acres across from the Cosmopolitan sold for $172 million, working out to over $10 million per acre!
But to be conservative, we can look to the $350M sale of the old 87-acre Echelon site from 2013. That works out to $4.02 million per acre.
And mind you – that‘s just for empty land! The building values of world-class casino resorts have to take the total even higher.
Casino Profits Approaching 2019 Highs of $6.6 Billion
Pre-pandemic in 2019, casinos along the Strip generated a staggering $6.6 billion in gaming revenue according to the Nevada Gaming Control Board. 2021 saw profits rebound to $5.7 billion as visitors returned.
Analyzing the last 5 years, these resorts produced over $25 billion combined in casino win. That‘s some serious cash flow to support premium valuations!
[Strip Gaming Revenue 2017-2021]| Year | Revenue |
|---|---|
| 2017 | $5,665,737,000 |
| 2018 | $5,687,540,000 |
| 2019 | $6,601,186,000 |
| 2020 | $2,063,685,000 |
| 2021 | $5,751,168,000 |
And array of leading analysts forecast Strip casino revenue hitting $7.2 billion or more by 2023 – surpassing even 2019‘s record highs.
VICI‘s Acquisition Owns 60%+ of Rooms on Strip
Who actually owns the hottest hospitality real estate in Vegas? It may surprise you!
The recently formed REIT VICI Properties now holds an unmatched Strip portfolio covering 60% of hotel rooms along the Boulevard.
After acquiring MGM Growth Properties in 2022 for $17.2 billion, VICI‘s Vegas assets include:
- Caesars Palace
- Mandalay Bay
- Luxor
- Excalibur
- New York New York
- Park MGM
- The Mirage
That‘s over 18,000 hotel rooms generating huge revenue streams under one landlord!
MGM Resorts retains ownership of Bellagio, MGM Grand and other prime spots. But between VICI‘s dominant base and Caesars‘ merged portfolio, consolidation is shrinking the major Strip players.
With Growth Ahead, $60 Billion Seems Conservative
By my estimates based on land prices over $4 million per acre, casino profits approaching $7 billion a year, and VICI‘s swap for $17 billion+ worth of resorts – the Las Vegas Strip has to be valued at at least $55-60 billion. And that might still be conservative!
Goldman Sachs forecasts 2023 EBITDA of $3.7 billion just for MGM and Caesars thanks to surging demand and profit margins. Visitation could hit 50 million in 2023 with convention traffic rebounding. And America‘s gambling capital will only expand as more states legalize sports betting and casinos.
So while valuation is part numbers, part art – the enduring profit potential of the Strip makes its world-famous casinos and clubs a high-roller investment worth $60 billion and counting in my expert view!
What other gaming meccas around the world stack up against the almighty Las Vegas Strip? I‘d love to hear your thoughts in the comments!
