Dive Brief:
- MGM Resorts International reported a 5% year-over-year increase in consolidated net revenues in the third quarter of 2024, according to a Wednesday earnings report. In Las Vegas, where MGM has several prominent resorts along the Strip, the company saw 1% year-over-year growth in net revenues.
- MGM CEO Bill Hornbuckle said in the report that many key metrics are “demonstrating strength” in Las Vegas, including ADR and occupancy.
- During a Wednesday earnings call, Hornbuckle said he’s optimistic about future growth in Vegas driven by sports tourism and MGM’s loyalty partnership with Marriott Bonvoy.
Dive Insight:
MGM drove sequential improvement in its Las Vegas segment in the third quarter as the result of heightened occupancy and record ADRs in the market, according to Hornbuckle.
MGM competitor Caesars Entertainment similarly reported that increased occupancy and ADRs in Las Vegas drove the company’s results in the quarter. Caesars CEO Tom Reeg noted during a Tuesday earnings call that strong group business contributed to hotel performance growth in Vegas in Q3.
This year, Las Vegas has seen increased group business driven by meetings and events volume growth, including sporting events.
According to Hornbuckle, sporting events are a bright spot for Las Vegas, and the market has “become a major player in the sporting world.”
While Las Vegas is “already home to many major sports leagues in America, the city continues to build on its impressive track record,” Hornbuckle said on the call, pointing to the relocation of the Oakland Athletics’ ballpark to the former site of the Tropicana Las Vegas casino resort.
Sporting events “will continue to drive more visitors to Las Vegas, and our prime Strip footprint positions us to capture greater wallet share, driving the organic growth we are confident Las Vegas will continue to deliver for many years to come,” Hornbuckle said.
Looking to the fourth quarter, CFO Jonathan Halkyard said Formula 1’s Las Vegas Grand Prix in November will “bring significant economics to MGM during what has historically been one of the slowest weekends of the year,” albeit with a smaller impact than last year’s event.
Hornbuckle is also optimistic about MGM’s relationship with Marriott International in Las Vegas. The pair entered a long-term strategic licensing partnership in July 2023, creating the MGM Collection with Marriott Bonvoy brand, which continues to “exceed expectations,” Hornbuckle said.
Earlier this month, MGM announced its Delano Las Vegas resort will convert under Marriott’s luxury W Hotels brand as part of the partnership. In addition to Delano, the collection encompasses 12 hotels along the Strip, including Bellagio, ARIA Resort & Casino, The Cosmopolitan of Las Vegas and Mandalay Bay Resort & Casino.
