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What is the Contribution of a Casino at a Hotel?

Casino hotels are profitable as a two for one entertainment and lodging option. Consider this: would you rather stay at a hotel, or a hotel with tons of options for things to do, from a pool, to a casino, to a restaurant, perhaps even a theatrical production. It is for this reason that they are seeing more popularity as a development option by real estate moguls.

Casino hotels are profitable as a two for one entertainment and lodging option. Consider this: would you rather stay at a hotel, or a hotel with tons of options for things to do, from a pool, to a casino, to a restaurant, perhaps even a theatrical production. It is for this reason that they are seeing more popularity as a development option by real estate moguls.

Eastside Cannery Hotel

So just what exactly contributes to the success of a casino hotel hybrid? Specifically, what added value proposition does a casino have for a hotel? Let us delve further into how these two hospitality service enterprises play nicely together.

Attracting Guests from Out of Town

In terms of bringing in more people, the casino might in fact be primary to the entire operation. That is, when people come in from out of town, they could look first to the casino as the reason they might want to stay at the hotel, rather than the other way around. That being the case, adding a casino to a hotel rather than just building a hotel is a huge advantage, a veritable leg up on the competition who has to rely on traditional means of advertising in order to bring in new guests. For any developer out there, this should be the first option to consider before building a new hotel.

Bringing in People from Off the Street

As for passerbys, are they more likely to be enticed by a hotel, or a hotel casino combo when they are looking for entertainment options? The added value of a casino is that it becomes more of a spectacle, a hub that draws people in who ordinarily might not consider dropping in. A hotel, on the other hand, is farm more limited by itself in terms of having that kind of drawing power. Plus, there is the added benefit that people from in town who get too drunk to drive home will need a place to stay for the night, thus bringing in more hotel guests.

Eastside Cannery Hotel

Multiplier Effect

Now, these same people who otherwise would not have even stepped foot in your establishment are looking for food because they are hungry, so they stop by the hotel’s restaurant and run up a tab there. Alternatively, they stop by the bar and run a bill there. This is the multiplier effect, and it can influence a lot of things that a multimedia entertainment complex might have under one roof, including:

  • Restaurants and dining services
  • Live entertainment like magician’s shows
  • Theatrical productions
  • Bar sports areas like darts, pool, perhaps even bowling
  • A pool bar
  • Industry conferences

This kind of domino effect on other hospitality services that are housed in the same complex cannot be underestimated. The place sells itself, with the advertisement able to promote itself as an all-in-one experience. It keeps guests at the hotel, eating and drinking, gambling and going to shows, all the time making money for everyone involved. This kind of added value proposition is virtually irreplaceable.

Lower Lodging Costs and Casino Exposure to Newbies

That does not even factor in people who might stay at the hotel just as a lodging option, and then sucked into the casino world. Many people have never set foot in a casino, but the fact that the hotel can likely offer competitively low prices compared to other hotels without casino fare – all thanks to the fact that their casino money subsidises the hotel discounts – means that there is an opportunity for people to try all kinds of fun games like slots, poker, roulette and craps for the first time.



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