Boyd Gaming reported $990.5 million in third-quarter revenue, down from $1 billion in the same period last year, with Las Vegas locals and downtown properties also seeing a year-over-year decline. President and CEO Keith Smith said play from local residents remained strong, but that trend was offset by increased softness in destination business, primarily at the Orleans, and construction disruption at the Suncoast.
Smith cited the impact of several storms in Hawaii during August and September, along with a significant increase in Hawaiian airfares in the second half of the quarter, as factors affecting destination travel. He noted that while airfares remain elevated, they have started to moderate, and said the company has been dealing with softness in Southern Nevada destination business for the past year.
The company completed renovations to all public spaces at the Suncoast at the end of the quarter, and Smith said guests are responding enthusiastically. The final phase, a remodel of hotel rooms, began late in the third quarter and should be finished by the first quarter of next year. A similar modernization project at the Orleans is set to begin in early 2027, with initial phases in non-public areas to minimize disruption.
Boyd expects to complete the remodel of 1,800 hotel rooms at the Orleans in November, followed by 400 rooms at Suncoast. Smith said having those rooms back online for weekends will support the fourth quarter, noting the company has had more than 300 rooms out of service daily for the last year. He expressed confidence in Southern Nevada's long-term fundamentals, citing population growth above 2.4 million and job growth ranking second among the nation's 30 largest metro areas.
Sources: Las Vegas Review-Journal
Original reporting: Las Vegas Review-Journal →
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