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New Name For Monte Carlo, Excalibur Expansion, Crystals For Sale, REIT and More From MGM Resorts Earnings Call

Jim Murren, CEO MGM Resorts

Jim Murren

Earlier today I listened to the MGM Resorts quarterly earnings call. The company has so much going on that they’re easily the most fascinating of the Vegas casino companies to follow.

You can read press releases and listen to the MGM quarterly earnings call here for specifics. Below are my notes with lots of information.

  • Jim Murren said MGM would like to participate in DFS in the future. They’re waiting for clarity in the area. This was last question asked if you’d like specifics.
  • Excalibur is underperforming and Jim Murren discussed idea of mid-scale retail expansion on the Vegas Strip to draw people into property.
  • Murren restated that Monte Carlo will have a new name next year. Outlook is very optimistic for the property.
  • Small note given to the fact that customer booking windows are growing
  • Crystals still on the market by MGM Resorts. There’s plenty of interest. They’re sorting through investors. Murren says it’s worth over $1 billion.
  • Mandalay Bay now has the 5th largest convention center in the US after recent expansion. Details on the expansion here.
  • 2016 should be best year ever for conventions at MGM Resorts. Even with Mandalay Bay expansion they still don’t expect to have enough capacity.
  • Press release on MGM REIT
  • MGM Resorts keeping 2 most profitable properties in Las Vegas out of the REIT (Bellagio & MGM Grand).
  • MGM REIT will be called MGM Growth Properties and be a separate stock offering planned for Q1 2016.
  • MGM Arena not part of REIT because it’s a partnership with AEG. REIT doesn’t include any partnerships like City Center.
  • Non-luxury MGM Resorts properties growing faster than luxury. For example REVPAR for non-luxury up 14%, lux up 6%
  • Aria hotel EBITA up 23% Year over Year. Vdara 0ver 40% EBITA increase.
  • MGM Detroit EBITA only ranks behind Bellagio, MGM Grand & Mandalay Bay. Better than The Mirage, New York New York, etc.
  • MGM hotel rooms had a 96% occupancy rate last quarter. Up 1% from same period last year.
  • Average Daily Room rate for MGM hotels was $141 last quarter. That’s up $10 (8%) from same time last year.
  • Circus Circus is interesting opportunity for MGM seemingly because it’s 100 acres of land on the Vegas Strip.
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Mr. Chow Plans to Open in early 2015 at Caesars Palace

Mr. Chow Caesars Palace

The Other Mr. Chow

When I think of ultra exclusive restaurants in New York City I think of Rao’s and Mr. Chow. It’s almost impossible to get a table at either restaurant unless you’re super rich, famous or both. While Rao’s in New York is famous because it has fantastic food and only 6 tables but Mr. Chow is different. Mr. Chow is a decent sized restaurant for New York and more famous for being famous. Kinda like Kim Kardashian.

Many moons ago I had a celebratory dinner at Mr. Chow and I couldn’t have been more stoked. Why? Forget any other famous person that may have been dining along side of my group – Jay-Z was in the house! Jay-Z came up to the table as smooth as can be to say hi and congratulate our table on being awesome. Then he knocked over someone’s water and said something that made him appear even smoother. I don’t think I was the only person who was a little swoony.

5 year’s ago Mr. Chow was being planned to open at either The Harmon or Vdara at City Center. Well, things have changed and Mr. Chow will now open next year at Caesars Palace which also is home to Rao’s. If someone wants to do something awesome together and celebrate at Mr. Chow, I’m down! Otherwise, you have a better chance of catching me at another New York favorite at Caesars Palace, Carmines.

Here are more details from the Mr. Chow press release

Caesars Palace is pleased to announce internationally renowned MR CHOW is expected to open its seventh restaurant location in early 2015. The luxurious Beijing cuisine eatery will be located in the impressive second story space currently occupied by Empress Court, which will close this spring.

With locations in Malibu, Beverly Hills, New York, Miami and London, MR CHOW has conceptualized and perfected refined Beijing cuisine dining with European style service. The menu will feature beloved dishes such as the Chicken Satay, Green Prawns, hand-pulled MR CHOW Noodles and famed Beijing Duck.

“Continuing with the tradition of offering Caesars Palace guests the best in customer service, hospitality and dining, I am honored to welcome the legendary MR CHOW to our award-winning culinary lineup,” said Regional President of Caesars Palace, Gary Selesner. “We look forward to guests experiencing the elevated cuisine, paired with the unique location and chic and stylish design MR CHOW is well-known for.”

Not only will the menu feature signature MR CHOW dishes, but also a selection of specialty cocktails made with fresh ingredients and carefully crafted by a team of mixologists.
“For MR CHOW, Las Vegas is a must,” said Mr. Chow. “After many years of hard work, at last, we are happy to announce that we found our perfect match in Caesars Palace. Caesars is the pioneer and cornerstone of Vegas and we are delighted to open in the year of the sheep.”

MR CHOW guests will enter through a set of private elevators, located on the casino floor level of Caesars Palace. The restaurant will be located on the second story, which will overlook the Garden of the Gods pool oasis. With design credits including boutiques for Giorgio Armani, Mr. Chow’s keen sense of design is sure to be reflected in the space.

Copyright © 2017 Marc Meltzer & EDGe Vegas