Fans attend a trackside concert at the Elara by Hilton Grand Vacations Club ahead of the Las Vegas Formula 1 Grand Prix. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
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At a time when tourism is down overall, and especially slow in late November, the Formula 1 Las Vegas Grand Prix is a boon for the city, hotels, and casinos near and around the circuit.
It may cause traffic headaches and raise the consternation of locals, but since the inaugural race in 2023, the Formula 1 street course race has become the biggest annual event in Las Vegas. While requested, the announced sellout numbers for the race have not been released. Last year, it was announced that attendance was 306,000 for the race weekend, and in 2023, it was 315,000.
The race comes at an important time for the Las Vegas economy. The race falls on what is traditionally considered the slowest weekend of the year in Las Vegas. But this year, the economic value is even more critical. Harry Reid International Airport, which service Las Vegas, had its steepest passenger decline since January 2021 this past October. Airport officials said the number of passengers served fell 8.2% to 4.9 million, but that was compared with October 2024, which had the second-highest passenger count in the airport’s history. Overall, tourism was down 11% over the summer, and the Las Vegas Convention and Visitor Authority’s June report showed an estimated 3,094,800 people came to the city, down from 3,490,061 in June 2024.
Hotels On The Race Circuit See Benefits
Off The Strip, nestled on East Harmon Ave, the Hilton Grand Vacations Elara Hotel sits just ahead of the start/finish line for the LVGP. As one of the Grand Prix’s partners, the hotel has seen the benefits of the race.
“We completely sold out,” said Mark Wang, CEO of Hilton Grand Vacations about the 1,600 rooms for the Elara in an exclusive with me for Forbes. “Our clubhouse, which sits on the track, and our Elara Terrace, where we conduct our concerts, is a large part of the strong demand,” for the race weekend. Adding to the overall experience on race weekend, the Elara hosted Joey Fatone and Friends on Thursday, Boyz II Men on Friday and country star Rodney Atkins on Saturday ahead of the race.
According to Wang, with Hilton Grand Vacations having a network of hotels and experiences, the Las Vegas Grand Prix grows customers. The Elera has now hosted over 7,000 members since the 2023 inaugural race.
“Every time we add a new member to our customer base, we’re adding lifetime value to our business, which drives a lot of recurring revenue,” said Wang. “It creates a very stable and sustainable business model for us. And so when you look at the recurring revenue that resides in our business, it’s over 50% of our revenue is driven through recurring revenue.”
HGV members Rashid and Glenda Farook are a perfect example. Hailing from Atlanta, the couple got involved in Formula 1 from playing the Gran Turismo video game, watching Netflix’s Drive to Survive, and have become big fans of the global racing series, first attending the Miami Grand Prix due to proximity to Atlanta, and traveled to Las Vegas for the first time this year to take in the Grand Prix, first taking in the grandstands for practice and qualifying, and then the Elara for the race. After taking in the Las Vegas race, do they plan on returning?
Both nodding, they made it clear the Las Vegas race offers something special to travel to.
“We plan on returning and making it a regular destination.”