Las Vegas is well positioned for growth with major new hotel openings in 2014.

　　The Las Vegas lodging market has historically enjoyed occupancy levels well above the U.S. norm. With its approximately 150,000 rooms, average citywide occupancy held steady at 84.3% in 2013. Las Vegas' average daily room rate increased $2.64 to $110.72 in 2013. Casino operators fill their rooms at an attractive price point in order to generate patrons for their casinos and other revenue generating components by offering discounts and other promotions. In these situations, discounts or comps will generally be recorded as revenue for hotel or other departments and as a gaming/marketing expense. As indicated in the table below, available inventory and occupied rooms increased at average annual compounded rates of 2.1% and 0.9%, respectively, between 2007 and 2013. During this period, total occupancy peaked at 90.4% in 2007.　

　　The year-to-date performance of the Las Vegas lodging market through April 2014 exhibits positive trends over the same period in 2013, including significant increases in the number of occupied room nights, average daily rate, and RevPAR.　

　　Occupancy levels for the LVS $72M+ submarket have historically been strong − over 90% since 2003.Average daily rates declined at an average annual compounded rate of -0.8% between 2007 and 2013, with significant drops in 2009 (-14.2%) and 2010 (-9.0%). Over the more recent period, 2011 to 2013, the average annual compounded rate of change has been a more robust 5.8%.

　　The market’s recovery is reflected in the data beginning in the FY June 2011 and has continued through FY June 2013. Data for the past three fiscal years for the LVS $72M+ submarket reflect larger increases in the average annual compounded rate of change for occupied rooms (2.2%), average daily rate (5.8%), and RevPAR(6.4%) than for the 2001 to 2013 period.