On the Call: Las Vegas Sands CEO Sheldon Adelson

The casino industry has seen revenue drop for more than a year at the same time it is coming off an extended building binge. The combination of those factors with the global credit crunch has put many in a financial bind.

To compensate, many including Las Vegas Sands Corp. have slashed rates on hotel rooms and meals to keep gamblers in their casinos. The worry now among analysts and many executives across the hospitality industry is that it may take a while even after the economy recovers for tourists to feel comfortable paying higher rates again.

Las Vegas Sands CEO Sheldon Adelson expressed optimism during a conference call Thursday with investors after his company reported on its second-quarter earnings that it will bounce back faster than many.

QUESTION: You guys have cut rates enough to drive occupancy; how should we think about rate improvement?

ANSWER: “We’re a different value proposition…. We think we can get away with something $50 or $75 more than what just a plain hotel room can get. So not all Vegas properties are created equal. We think we’re created a little more equal than others and our ability to get back to normalized (average daily room rates) is probably better and faster than our competitors.”