Boyd Gaming Corporation (BYD), Wynn Resorts, Limited (WYNN), Las Vegas Sands Corp. (LVS): The Las Vegas Strip May Have a New Resident

This also adds more rooms to the upper end of the market, pressuring prices there, and making the lower end look even less attractive. For MGM Resorts and Caesars Entertainment Corp (NASDAQ:CZR) , which together own most of the land on the southern two-thirds of The Strip, it will bring even more high-end business to the northern end of The Strip.

Overall, the added capacity will limit upside to resorts that could use higher occupancy, higher room rates, more people in their restaurants, and more people at existing tables.

Foolish bottom line
If you need any more reasons not to buy Caesars or MGM, this is a big one. Just when Las Vegas Sands Corp. (NYSE:LVS) should be picking up steam, there will be more capacity added, pulling customers from both companies.

For Wynn and Las Vegas Sands it’s a little less disruptive, because they could use some more neighbors on their side of The Strip, but it doesn’t really add to their position.

The article The Las Vegas Strip May Have a New Resident originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned.

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