Escape room market robust, growing in Las Vegas

When Jim Niehoff first opened an escape room in Las Vegas in the summer of 2017, he said there were just seven escape room facilities in town. Just over a year later, that number has doubled.

“That tells you how quickly they’re growing,” said Niehoff, the president of Escape Reality Las Vegas, at an educational session Tuesday morning at the Amusement Expo International convention. “As the growth continues, people get more exposed to escape rooms.”

The convention, which kicked off Tuesday at the Westgate attracts about 3,000 attendees, according to the Las Vegas Convention and Visitors Authority. Exhibits will take place Wednesday and Thursday at the Las Vegas Convention Center.

Escape rooms aren’t an easy industry to jump into; rooms can take up to six months to build and can cost in excess of $150,000. But with more consumers looking for interactive experiences outside their homes, local experts say the industry is poised to continue its growth.

A growing industry

Data from Room Escape Artist, a website that tracks and reviews escape rooms, shows the number of escape room facilities in the U.S. has been on a steep upward trend. At the end of 2014, there were about two dozen facilities in the country; by July 2018, that number passed 2,300.

Escape rooms got their start in Asia about a decade ago, before expanding to the Canadian and U.S. markets six years ago, Niehoff said. The games lock up groups — usually six to eight people — in themed rooms, and provide clues and puzzles that lead the customers to their escape. Customers usually have one hour to do so.

Lloyd Notley, director of franchise sales for Orlando-based franchise Escapology, said escape rooms’ locks, trapdoors and puzzles give customers a sense of achievement that keeps them coming back.

“It’s really making it a more immersive, Disney-esque experience,” he said.

The Las Vegas market

Steven Dipilla, the general manager of the Las Vegas Escapology, said the local market is in its growth stages. Still, it ranks seventh among U.S. cities for the number of escape room facilities with 14 locations, according to data from Room Escape Artist.

Niehoff said Las Vegas has an advantage over other markets with its high tourism rate.

“The fortunate thing about Vegas is, nobody comes once,” he said. “Most of the facilities here in Vegas have a good return rate.”

Dipilla said about half of the Las Vegas Escapology’s customers are tourists. To attract both locals and visitors, he said many escape rooms find properties just outside the Strip.

The first Las Vegas Escapology location is on South Maryland Parkway just off Karen Avenue, and has plans to open a second location in Town Square this year.

“It’s really expensive to be on the Strip,” Dipilla said. “We’re trying to pull (people) from the Strip, make it convenient for tourists to get to us, but still make sure we’re also in the community.”

Advancing technology

Niehoff said the cost to play at most Las Vegas escape rooms runs between $30 and $35. With high-tech rooms costing anywhere between $25,000 and $150,000 to build, Niehoff said a business owner may have to be patient to see any return on investment.

“It is lucrative,” he said. “I think it is a great addition to a (family entertainment center) from a revenue generation perspective.”

Niehoff said the annual gross revenue per room runs anywhere between $40,000 to $85,000. Notley said he expects the quality of escape rooms will continue to advance, with augmented reality taking a more active role as soon as 2020.

“We’re really looking at the different technology and maintaining that immersive experience,” Notley said.

Niehoff said the industry will continue to thrive as more people become aware of escape room experiences and as the technology in these spaces continues to advance.

“Mutli-attraction venues with premium rooms will thrive,” he said. “I see more and more movement in this space.”

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