MGM Resorts has experienced strong demand at its Las Vegas resorts leading up to the end of the year, despite some setbacks in July and lower interest in the upcoming Formula 1 race in November. CEO Bill Hornbuckle stated that July was a challenging month due to extreme heat and a major highway closure, but the situation improved as the quarter progressed. For October, the average occupancy rate at MGM Resorts has been around 97%. Bookings for the Formula 1 event in November are lower than last year, leading to slower pacing.
The partnership with Marriott Bonvoy continues to benefit MGM Resorts, with a licensing deal resulting in bookings that were 20% above expectations for the year. Marriott customers have been booking an average of 2,500 room nights per day at MGM Resorts properties, with a significant portion being redemptions of loyalty points. Additionally, Marriott’s sales teams have been bringing in medium-sized corporate group bookings, helping reach new customer segments. To further maximize the partnership, MGM Resorts plans to rebrand Delano Las Vegas to the Marriott brand W at the beginning of the new year, expecting a positive impact on both average daily rates and occupancy.
MGM Resorts’ third-quarter results indicated favorable dynamics in the hotel and resort industry. The company saw record average daily rates in Las Vegas, reaching $243 in the quarter, up 3% from the previous year and over 50% higher than pre-pandemic levels. Investments in completing the Mandalay Bay Convention Center also paid off, with record catering and banquet results in 2024. Looking ahead to the fourth quarter, executives are optimistic about a healthy group environment and pricing for their hotels, with plans to renovate 4,000 standard rooms at the MGM Grand Hotel & Casino in Las Vegas next year.
Despite facing challenges, MGM Resorts achieved record consolidated net revenues of $4.2 billion in the third quarter, a 5% increase from the previous year, mainly attributed to the continued recovery of MGM China. Net income also saw growth, reaching $185 million, up from $161 million in the prior year quarter. The company’s performance reflects both its strengths and areas for improvement, as it navigates through the evolving landscape of the accommodations sector.
Looking forward, executives at MGM Resorts highlighted a positive outlook for the upcoming quarter, noting a strong group environment and healthy pricing for their hotels. While they did not provide specific details, plans are underway to potentially introduce gaming at an upcoming MGM Resort complex in Dubai, expressing enthusiasm for the project. Overall, MGM Resorts remains optimistic about its future prospects and is focused on driving growth and innovation within the company to continue delivering value to its customers and stakeholders.
