— By Mike Mixer of Colliers —
Recent headlines have pointed to a “cooling” of the Las Vegas Strip, with RevPAR down, visitation below peak levels and growth moderating from 2022 and 2023 highs.
On paper, the numbers look softer. But before drawing conclusions, it’s important to consider how the data is being viewed as the comparisons most often used are distorted.
The Pandemic was Not a Normal Cycle
COVID-19 shut down the Strip in March 2020, an unprecedented event in modern history. Southern Nevada visitor volume dropped by more than 50 percent. Resorts closed, occupancy collapsed and revenues fell sharply.
The 2021 to 2023 rebound that followed was equally unusual. Pent-up demand, stimulus liquidity and limited new supply drove record ADR growth and historic RevPAR levels.
Both the downturn and the surge were outliers.
When those years are used as a benchmark, today’s performance appears negative. In reality, it reflects normalization.
Rates Remain Elevated
Even with recent moderation, Strip ADR remains materially above pre-pandemic levels. Operators have maintained rate discipline and are not aggressively discounting to chase occupancy. That suggests stability rather than weakening demand.
Capital Signals Confidence
If the Strip were in decline, capital would be retreating. Instead, Blackstone secured a $3 billion refinancing for the Cosmopolitan, underscoring continued institutional confidence in the market.
At the same time, development sites are being recalibrated, not abandoned. For example, a nearly 4.7-acre parcel at 5051 South Las Vegas Blvd. that was previously tied to a stalled casino concept is being repositioned for a 531-key boutique hotel. That reflects market discipline rather than distress.
The Reset
After record-breaking performance, the Strip is returning to more sustainable levels. With pandemic distortions removed, the trajectory is clearer:
— ADR remains structurally higher than 2019
— Institutional capital is active
— Supply growth is measured
— Event programming continues to expand
While recent performance may appear softer against peak comparisons, the Strip remains one of the most resilient hospitality corridors in the country.
— By Mike Mixer, Chairman of Colliers. This article was originally published in the April 2026 issue of Western Real Estate Business.