The Las Vegas hotel industry is grappling with significant challenges following the 2024 closures of two iconic properties, the Tropicana and the Mirage. These developments have resulted in a net loss of over 4,500 hotel rooms, with full recovery not expected until the debut of the Hard Rock Las Vegas in 2027.
Major Closures Reshape the Landscape
The Tropicana officially ceased operations in April 2024, with its towers demolished later in the year to make way for a $1.75 billion Major League Baseball stadium for the Athletics, coupled with a new Bally’s Corp. resort.
Meanwhile, the Mirage shut its doors in July to begin its transformation into the $1.5 billion Hard Rock Las Vegas, owned by the Seminole Tribe. The Hard Rock project will introduce a striking guitar-shaped tower, replacing the iconic Mirage volcano, and is set to open in spring 2027.
Despite these closures, some new developments provided a small boost to the area’s inventory. Two nongaming hotels—the Atwood Suites Henderson and Homewood Suites by Hilton North Las Vegas—opened in November, adding 213 rooms. However, these additions were insufficient to offset the loss of rooms and convention space from the Tropicana and Mirage closures.
Recovery on the Horizon
While 2024 marked a year of significant setbacks, Las Vegas is preparing for a resurgence in the coming years. Six new hotel projects are slated for completion in 2025, including a $206 million expansion of Penn Entertainment’s M Resort in Henderson. This development will add a 384-room tower and 40,000 square feet of convention space, with an expected opening in summer 2025.
Another innovative addition is the Otonomus Hotel, an $85 million AI-powered property near Allegiant Stadium. Scheduled to open in March 2025, the 182-room hotel aims to deliver personalized guest experiences using cutting-edge technology.
Additionally, four nongaming properties will contribute over 1,200 rooms in 2025. These include Spark by Hilton Las Vegas Airport, Element Las Vegas Airport, and two properties in Symphony Park: Element by Westin and AC Hotel by Marriott, which will offer convention facilities.
Investments and Long-Term Plans
Las Vegas continues to see significant investments in tourism infrastructure. In 2024 alone, $757 million was spent on various attractions and renovations. Highlights included Ole Red Las Vegas, the Atomic Golf entertainment complex, and a $130 million update to Bellagio’s Spa Tower.
Looking ahead, nearly $15 billion in projects are planned for 2026 and beyond. Key initiatives include the completion of the Hard Rock development, the Athletics baseball stadium, and the Brightline West high-speed rail connecting Las Vegas to Southern California. Speculation about NBA-ready arenas also suggests the potential arrival of a professional basketball team.
As Las Vegas navigates these transformations, the city remains focused on maintaining its status as a global hub for tourism, entertainment, and sports. The reopening of the Hard Rock Las Vegas in 2027 and the MLB stadium in 2028 signal a promising future for Southern Nevada’s hospitality industry.
Source:
Las Vegas catching up on room losses after Tropicana, Mirage closures, reviewjournal.com, December 28, 2024.