Las Vegas tourism raises Raiders’ $ 2 billion stadium bonds

The bond-backed Allegiant Stadium – worth nearly $ 2 billion and home to the NFL’s Las Vegas Raiders – is on its way to financial success as tourists flock to Sin City.

Clark County in Las Vegas sold out $ 645 million in debt in 2018 for the stadium, backed by revenue from the tax on hotel rooms.

At the time, county officials expected taxes to cover stadium bond debt service payments through 2048, according to S&P Global Ratings – Clark County hotel occupancy rates were above the national average. But tourism has declined with the pandemic, force the count tap into a debt servicing reserve fund twice in six months to complete the payment terms.

Now County spokesman Erik Pappa said he won’t need to use the same book services to make their December deposit payment for the stadium.

  • Although still below pre-pandemic levels, visitors have been up almost 83% in October – the “higher attendance“in the pandemic.
  • S&P director Li Yang said the “missing piece” to a full recovery was business travelers and international visitors.

The COVID omicron variant could also have negative effects.

“While this is a good sign for Raiders Stadium investors, I think it’s too early to signal the green light, ”said Eric Kazatsky, Bloomberg Intelligence strategist.

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