The CONEXPO-CON/AGG construction trade show in Las Vegas this week is expected to provide a meaningful lift to MGM Resorts (MGM) and Caesars Entertainment (CZR).
CONEXPO-CON/AGG is marketed as North America’s largest construction trade show, with around 2,000 exhibitors, 2.9 million square feet of exhibits, and extensive education sessions and networking events. The event only takes place once every three years, which encourages larger delegations and longer stays that translate into elevated demand for Strip hotel rooms, restaurant bookings, and entertainment for the duration of the tradeshow..
Convention and trade show visitors are especially valuable to Strip operators because they spend more per trip than the average leisure visitor and help fill the city’s 150,000‑plus rooms during shoulder periods. Local economic analysis indicates that convention visitors spend about 30% more than typical visitors, so a large, infrequent event like CONEXPO-CON/AGG can meaningfully support MGM’s (MGM) and Caesars’ (CZR) gaming, food‑and‑beverage, and entertainment revenue lines in an otherwise softer demand environment.
MGM Resorts (MGM), in particular, has oriented its Strip strategy toward leading the group and meetings segment. For Caesars Entertainment (CZR), which operates multiple Strip resorts and has recently faced year‑over‑year declines in Las Vegas revenue and net income amid a broader tourism slowdown, strong convention weeks are important catalysts to stabilize and potentially re‑accelerate top‑line trends.
The convention landed in the first-quarter earnings reporting period for both casino operators.