MGM Resorts continues to expand, targets new facility in Las Vegas

MGM Resorts continues to expand, targets new facility in Las Vegas

MGM Resorts International Considering a New Facility on the Las Vegas Strip.

MGM Resorts: New Las Vegas facility 

MGM Resorts is growing increasingly enthusiastic about the southern end of the Las Vegas Strip’s future. This week, one of its top officials indicated that additional improvements in the area might be imminent. MGM Resorts, which operates most of the Strip’s casinos, dominates the Strip’s southern end real-money casino scene. The business owns Mandalay Bay, Luxor, Excalibur, New York-New York, Park MGM, and MGM Grand. The Tropicana is the only casino resort on the Strip’s southern part that MGM does not operate.

MGM Resorts International is an American worldwide hospitality and entertainment corporation that owns and operates destination resorts in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland, and New Jersey. Its properties include Bellagio, Mandalay Bay, MGM Grand, and Park MGM.

The business acquired Empire City Casino in Yonkers, New York, in January 2019 and opened MGM National Harbor and MGM Springfield in Maryland and Massachusetts, respectively.

The corporation owns a majority stake in MGM China Holdings Limited, which operates the MGM Macau resort and casino and is developing a Cotai gambling resort. MGM Resorts owns 50% of Las Vegas’ CityCenter, including the Aria Resort & Casino. It holds a majority stake in real estate investment trust MGM Growth Properties.

MGM is consolidating its position in the area with the addition of Cosmopolitan. In September, the business announced that it would pay the Blackstone Group $1.6 billion to acquire the upscale casino and hotel’s operating rights. According to the CFO, there are seven acres of Strip-facing land just in front of the Excalibur, nearly the same footprint as the Cosmopolitan. Halkyard clarified that he is not implying that MGM is planning to build a 3,000-room hotel tower there shortly. However, it is a possibility.

Process of Development 

If MGM Resorts is serious about developing a new property near Excalibur, the casino operator must first agree with its landlord. MGM Growth Properties, MGM Resorts’ real estate investment trust (REIT), owns the land and physical assets for each casino mentioned above. In recent years, MGM has been rumored to be considering divesting Excalibur and Luxor, which comprise the gaming company’s lower-end hotels geared for budget-conscious guests.

MGM Resorts owns the majority of MGM Growth Properties. The southern half of the Strip is indeed lively. Along with Allegiant Stadium, which is located directly across I-15 from Mandalay Bay and is home to the NFL’s Las Vegas Raiders, news circulated this week that the MLB’s Oakland A’s are considering building a ballpark near Tropicana.

Vegas Vigor COVID-19 continues to pose a significant danger to global economies. As 2021 draws to a close, the latest omicron variety is causing much uncertainty. However, providing the mutation does not result in the reintroduction of harsh lockdowns; MGM executives are confident about Las Vegas’ future. Nevada casinos have exceeded $1 billion in monthly gross gaming revenue in each of the last eight months. Clark County, Nevada, including Las Vegas, has reported casino winnings over $1 billion in five of the preceding six months.

Halkyard explained that the robust gaming revenue results are partly attributable to pent-up demand and more sustainable causes such as higher guest spending. The CFO noted that omicron is not having a meaningful impact on bookings at the moment. One area of concern is that the over-65 population has not returned to Southern Nevada or MGM’s regional casinos throughout the country. At least not in the same proportions as younger generations. However, Halkyard believes that if they do, it will only help MGM normalize its market due to some of the pandemic’s pent-up demand dwindling.

Halkyard stated, “The reality is, and few people realize this, that our company has a significant possibility to expand development in that area if we believe it will benefit shareholders. There are seven acres in front of the Excalibur Hotel and Casino, equivalent to The Cosmopolitan of Las Vegas’s whole area. I’m not recommending we put a 3,000-room tower there, but it represents a big development opportunity.”

“We’re witnessing an increase in spending by rated and unrated players alike. While much of this is attributable to our marketing messages and strength of brand, it is also believed to be attributable to other variables, some of which are sustainable. In contrast, others will likely fade with time.”

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.