MGM Resorts Sees Healthy Vegas Demand Despite Heat Wave Hit, F1 Race Slowdown

MGM Resorts sees strong demand at its Las Vegas resorts continuing through year-end, despite some performance hiccups in July and a more muted interest in Las Vegas' Formula 1 race in November.

"July was pretty bad for the entire community, including us," said CEO Bill Hornbuckle on Wednesday during an earnings call. "We had 8 days in a row of 120-degree heat compounded with [major highway] I-15 being relatively closed for 3 days due to a truck rollover. Then the quarter got better."

For October so far, MGM Resorts has seen an average occupancy rate of about 97%.

Looking ahead, a Formula 1 race in Vegas in November isn't turning into quite the goldmine it was last year on its debut. The first F1 race was a novelty, and MGM Resorts could charge high room rates.

Looking ahead, room bookings for a Formula 1 event are down compared to last year, and the bookings pace has been slower.

Marriott Partnership Still Delivering

A recently launched licensing deal with the Marriott Bonvoy loyalty program has continued to benefit MGM Resorts. Executives said the pace of bookings was about 20% above expectations for the year.

Marriott customers booked an average of 2,500 room nights a day at MGM Resorts properties. About 30% of these were redemptions of loyalty points, and the rest were direct bookings.

Marriott's sales teams have also been bringing MGM Resorts incremental, medium-sized corporate group bookings.

"It's mid-tier 200- to 300-room groups that we hadn't been focused on, and we might not otherwise have seen and gotten," Hornbuckle said.

To help get more out of the Marriott partnership, MGM Resorts is taking one of its properties that wasn't part of the program, Delano Las Vegas, and adding it. Delano Las Vegas will be rebranded to the Marriott brand W around the beginning of the new year and will join the Marriott Bonvoy partnership.

"We think there will be some upside on the ADRs [average daily rates] and the occupancy at that property," Hornbuckle said.

The Context

MGM Resorts' third-quarter results reflected the evolving dynamics in hotels and resorts.

• The company achieved record average daily rates (ADRs) in Las Vegas of $243, up 3% — and over 50% higher than pre-pandemic.

• It invested over $100 million in completing the Mandalay Bay Convention Center, which saw record catering and banquet results in 2024.

What's Next

• Looking ahead to the fourth quarter, executives noted a "very healthy group environment and pretty healthy pricing" for their hotels.

• The company will renovate 4,000 standard rooms at its MGM Grand Hotel & Casino in Las Vegas next year.

• Executives didn't provide more details on the possibility of gaming at an upcoming MGM Resort complex in Dubai. "We love our Dubai project," Hornbuckle said. "I'd especially love it if it had gaming."

The Earnings Scorecard

MGM's third quarter highlighted both the company's strengths and challenges.

• Record consolidated net revenues of $4.2 billion, up 5% from last year, largely thanks to MGM China's continued recovery.

• Net income reached $185 million, up from $161 million in the prior year quarter.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

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