LAS VEGAS – Las Vegas Sands Corp. is temporarily closing the Palazzo hotel tower effective immediately due to a drop in occupancy on The Strip.
Most Palazzo restaurants and bars will remain open, as well as the parking garage and Grand Canal Shoppes. The casino will remain open with limited table games, reports the Reno Gazette Journal, which is part of the USA TODAY Network.
Reservations will be limited to the company’s Venetian tower through Dec. 23.
Pay and benefits will remain in place for employees at this time, the company said.
In July, Palazzo stopped taking weekday room reservations due to lack of demand.
The USA TODAY Network could not immediately reach Las Vegas Sands for comment.
Nevada's casinos reopened June 4 under new restrictions to slow the spread of COVID-19, including reduced occupancy, more space between gamblers and severely curtailed limits for meeting and convention space.
The pandemic has essentially transformed Las Vegas from a global destination to a regional gambling hub dependent on drive-in business.
"We're in a world of hurt here in terms of Las Vegas," said Las Vegas Sands President and COO Rob Goldstein in a July earnings call. "I've never felt more gloomy than I do today about what's happening in Las Vegas."
In November, Nevada Gov. Steve Sisolak strengthened Nevada's mask mandate among other new restrictions to stem a recent surge in coronavirus cases.
Ed Komenda writes about Las Vegas for the Reno Gazette Journal and USA TODAY Network.
This article originally appeared on Reno Gazette Journal: Las Vegas Palazzo hotel closed due to low demand amid COVID surge