MGM Resorts May Partially Close Some Properties on the Las Vegas Strip

MGM Resorts May Partially Close Some Properties on the Las Vegas Strip

US-based casino giant MGM Resorts is mulling the possibility of partially shutting down some of its properties in the Las Vegas Strip area. The company is thinking of the possibility as demand for casino products remains soft amidst the pandemic.

What is MGM planning?

Bill Hornbuckle, the chief executive of MGM revealed this plan during quarterly earnings call on Thursday. According to the Las Vegas Sun, he commented,

“We’re going through an exercise, we’re doing it now, about what do we keep open and what do we close. There are certain amenities, certain towers, certain brands potentially that could face closure from mid-November — give or take — through the holiday season.”

MGM Resorts May Partially Close Some Properties on the Las Vegas Strip

The source further suggests that the company is looking at limiting its midweek operations instead of going for full property closures.

Will MGM follow its peers?

Hornbuckle made the comments after its rival company Wynn Resorts scaled back some operations because of low visitation issues post the pandemic. MGM could be looking for similar changes to how it works on its 10 properties on the Strip. The CEO said that the company is keeping a close eye on the situation as they go forward.

Wynn Resorts announced that will be reducing operating hours at Encore Las Vegas from Thursdays to Mondays because of a lack of visitation. The new schedule is expected to continue indefinitely until consumer demand increases in the future. The 28-table poker room was temporarily shifted from the Encore Las Vegas property to the Wynn casino which is located adjacent to Allegro and the Race and Sportsbook. This property will be operating the poker room 24×7.

The Las Vegas Convention and Visitors Authority reported midweek hotel occupancy at 39% in Las Vegas, which marks a 47% decrease on a year-on-year basis. Weekend occupancy was 66%, which is a 30% fall compared to September 2019. MGM’s revenues have suffered a similar fate. Its net revenue for Q3 this year was $1.1 billion, marking a 66% drop on a yearly basis. Its net loss for the third quarter was $535 million. During the same period last year, the company earned a net profit of $37 million.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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