Much of the action on the Las Vegas Strip takes place in the south and central section of the iconic 4.2-mile stretch of road. In those areas, Caesars Entertainment (CZR) and MGM Resorts International (MGM) dominate with properties that serve everything from budget-conscious tourists to Las Vegas high rollers.
Pretty much every scrap of land on the south and central Strip has been spoken for. Scraps of land that once housed strip malls and motels have been purchased and rolled into high-end casino and retail projects.
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The competition between MGM and Caesars has made these sections of the Strip incredibly valuable. Celebrity chef-driven restaurants operate in a density you won't see anywhere else in the world and big-name musicians, comedians, and even magicians fill every theater, nightclub, day club, and any other possible venue.
Competing on the south and central Strips has become impossibly expensive, and that has driven opportunity on the somewhat forgotten north Strip. That area has experienced a bit of a revival with the launch of Resorts World Las Vegas and the improbable revival of Fontainebleau Las Vegas, which will open late this year.
Resorts World brought tourists to the north Strip, and that has been good for two existing properties, Circus Circus and The Strat. Both properties have invested in updating their properties and The Strat, a very visible resort casino known for its tall spire and daring thrill rides that launch people from the highest points in Las Vegas, has a major new attraction about to open.
When Atomic Range does open, it won't just be a way for people to swing some clubs in a modern setting. It will be a massive driver for The Strat.
Image source: Resorts World
Atomic Range Comes to the Las Vegas Strip
Resorts World and The Strat have one advantage over the Caesars, MGM, and Wynn Resorts (WYNN) properties on the south and central Strip -- it's relatively easy to get there by car. That's good news for golfers who will be drawn to Flite Golf & Entertainment's Atomic Range.
The 99,000-square-foot golf complex will sit next to The Strat on the Strip. It will house four stories with 103 separate hitting bays, six bars, 10 putting bays, meeting space, and a multi-use Astrocade that will feature large-scale screens for sports and entertainment viewing.
"Atomic Range, our first flagship location, will feature the latest in golf and entertainment technology for those looking to create memorable experiences with friends and family. The location along the Strip adjacent to The Strat is truly unmatched and accessible from anywhere in the Valley," said Flite Golf & Entertainment CEO John Vollbrecht in a press release.
The facility is expected to open before the end of the year.
Atomic Range Will Drive People to The Strat
The Strat sits at the end of the Strip. It's not far from Resorts World, but it's also not in an area dense with attractions or really any reason for people to be there. Atomic Range will change that. That's something that the resort casinos owner, Golden Entertainment (GDEN) Executive Vice President Blake Sartini talked about during his company's first-quarter earnings call.
"We're looking at roughly 500,000 to 600,000 visitors potentially that will be driven by that facility," he said of Atomic Range. "And I think the main thing to consider here is we have plenty of capacity within our current parking garage, which our anticipation is those people have to transition through the property to get to Atomic golf, the majority of them, let's say, there is a rideshare drop-off, and there is some adjacent parking to the facility."
So, basically, the golf facility will drive half a million or more people through The Strat. It's reasonable to think that some of those golfers will stop to gamble, eat, or decide to book a stay at the resort casino in order to have easy access to Atomic Range.
"But we intended to -- without getting into granular detail, intend to combine marketing efforts with that property and our property, primarily there's all kinds of things we can do there. But primarily, we can integrate our player rewards program. We can -- there's all kinds of offers that we can make one-off if you will," Sartini said.
Golden Entertainment clearly believes that Atomic Range will be a driver for its casino business.
"We're pretty confident that we can get those people to stick in the casino, particularly, as you know, we've renovated what we call the South Casino. As we go forward, we will renovate that north-end casino with more food and beverage offerings and additional gaming which we anticipate to capitalize on that foot traffic," he added.
