A senior executive with American casino operator MGM Resorts International has reportedly hinted that the firm may soon embark on a plan to bring a new gambling-friendly development to the south end of the Las Vegas Strip.
According to a Wednesday report from a source, the revelation came from the Las Vegas-headquartered company’s Chief Financial Officer, Jonathan Halkyard (pictured), during a Tuesday presentation at the Virtual Global Consumer and Retail Conference event from financial services giant Morgan Stanley.
Concentrated collection:
MGM Resorts International’s operating portfolio currently runs to ten Las Vegas Strip venues including the Excalibur Hotel and Casino, Bellagio Las Vegas, MGM Grand Las Vegas and Luxor Las Vegas facilities while the firm revealed less than a month ago that it was putting plans in place to dispose of its ageing Mirage Las Vegas property. However, Halkyard reportedly stated that ‘the energy’ along this famous corridor has been moving south following the opening of the T-Mobile Arena and Allegiant Stadium and led the operator to agree to pay roughly $1.6 billion in September so as to take over the running of the nearby The Cosmopolitan of Las Vegas enterprise.
Local feel:
Halkyard reportedly described the south end of the Las Vegas Strip as ‘our neighborhood’ and revealed that MGM Resorts International may soon begin considering plans to bring a large casino resort to the area as part of a larger strategy to attract more regional customers to Las Vegas. The executive moreover purportedly noted that such a venue could have the added benefit of allowing his firm to improve connectivity to its MGM Grand Las Vegas property as pedestrians often currently struggle to gain access.
Halkyard reportedly pronounced…
“The reality is, and not many people appreciate this, that there’s a substantial opportunity for our company to do additional development in that area if that’s something we think is a good move for shareholders. There’s seven acres in front of the Excalibur Hotel and Casino, which is equal to the entire footprint of The Cosmopolitan of Las Vegas. I’m not suggesting we’re going to build a 3,000-room tower there but that’s a significant development opportunity potentially.”
Post-pandemic revival:
Regarding the recent performance of MGM Resorts International in southern Nevada and Halkyard reportedly asserted that business remains resilient and has been performing well with October Las Vegas Strip revenues up by 30% when compared with the same month in 2019. He furthermore purportedly noted that his company’s regional casinos were similarly turning in strong comparable gains that he believes are ‘sustainable for different reasons.’
Halkyard reportedly stated…
“We’re seeing an elevated level of spend from both rated and unrated players. Much of this is due to our marketing communications and the strength of our brand but it’s also believed to be due to other factors and some of these are sustainable and some will probably taper over time.”