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.

6 Comments

  1. Marvin Miller

    Interesting notes. Any word on whether or not MGM is going to start charging to park at their Vegas resorts? That’s the latest rumor, and I hope Murren is not that desperate for revenue growth that this will be implemented.
    Thanks, Marc.

    • MeltzVegas

      Charging for parking is not a new rumor. It’s been around since MGM announced that they wouldn’t be building a parking garage.

      Little mentioned about the arena.

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