Published on: December 5, 2025, at 11:33 AM.
Updated on: December 5, 2025, at 11:40 AM.
- Another instance of high-end casinos thriving while mid-range properties face challenges.
- CEO Nichols states that a thorough review of fees and expenses is underway.
- The property is managed by Apollo Global Management.
The Venetian Resort in Las Vegas is on track for its most successful year to date, even as mid-tier and budget-friendly hotels on the Strip contend with a downturn in tourism.
During a recent appearance before the Nevada Gaming Control Board (NGCB) for licensing, Venetian CEO Patrick Nichols noted the contrasting fortunes on the Strip. Luxury resorts like the Venetian are thriving while properties targeting budget-conscious visitors are facing challenges as tourism in the U.S. capital for gaming experiences wanes.
“We noticed a downturn in June and July, but experienced our highest hotel revenue and occupancy in 26 years during August and September,” Nichols informed the Board. “The impact of declining visits is felt more acutely by mid-tier and budget markets, although negative headlines still affect perceptions of Las Vegas as a whole.”
In March 2021, Las Vegas Sands (NYSE: LVS) disclosed the sale of the Venetian, Palazzo, and Venetian Expo to Apollo and VICI Properties (NYSE: VICI) for a total of $6.25 billion. Apollo acquired the rights to operate the venues for $2.25 billion, while VICI invested $4 billion in the real estate assets.
Venetian’s Consistent Success Continues
Nichols’ comments about the Venetian’s fortuitous performance in 2025 reinforce a trend observed among operators focusing on high-end customers, who continue to do well while competitors with broader market appeals struggle.
This has emerged as a significant theme in statements from gaming companies throughout the year. MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two largest operators on the Strip, have disclosed experiencing weaknesses, while Wynn Resorts (NASDAQ: WYNN) has reported robust operations in Las Vegas.
Similar to Wynn and Encore, the Venetian and Palazzo are classified as upscale luxury destinations catering to guests who tend to be less impacted by broader economic concerns.
Since taking ownership of the Venetian, Apollo has enhanced the property’s financial performance and worked to improve its standing in Las Vegas. The private equity firm invested approximately $1 billion in renovations, modernizing dining options and guest accommodations. Nichols indicated to the NGCB that the focus will soon shift to upgrades at the Palazzo.
Venetian’s Comprehensive Review of Fees
In an environment where Las Vegas visitors are increasingly vocal about discontent regarding additional charges from operators, Nichols mentioned that the Venetian is conducting an extensive review of its fee structures and parking costs.
He emphasized that while consumers seek value, the definition of value differs from mere affordability.
“This ties back to discussions about value and visitor turnout. Value doesn’t always equate to lower prices, but ensuring guests receive their money’s worth. We’re investing in enhancements to meet those expectations,” he conveyed to the Board. “Guests may initially perceive our rates as high, but if they leave saying, ‘That was fantastic! I’d gladly pay for that experience at The Venetian again,’ then we’ve succeeded.”