Skift Take
MGM Resorts is thinking more broadly: It is leveraging entertainment and sports while also developing resorts outside of Las Vegas.
MGM Resorts International president and CEO Bill Hornbuckle discussed the company’s strategy and outlook on stage at Skift Global Forum 2024.
The big picture: MGM is diversifying beyond gaming by leveraging entertainment and sports to drive growth while also developing resorts outside of Las Vegas and creating an online gaming business.
Looking ahead: The company sees experiential offerings as critical for long-term success in Vegas and beyond. It’s optimistic about opening billion-dollar projects in UAE, Japan, Thailand, and New York.
Key Takeaways
- Vegas evolution: Once purely a gaming town, Las Vegas has become a major resort and entertainment destination. At MGM’s Bellagio, 70% of revenue now comes from non-gaming sources. A majority of visitors say their main reason for visiting isn’t gaming.
- Sports as a driver: Major sporting events such as Formula 1 have become a massive draw for Las Vegas. MGM Resorts sees this as a key focus area for growth, such as through a new arena it owns.
- Marriott partnership: The recently announced tie-up with Marriott’s loyalty program, which has 210 million members, has been highly successful for MGM Resorts, Hornbuckle said. The gain has come from swapping lower-value customers with higher-spending ones and adding group business for meetings and events.
- UAE expansion: MGM Resorts has submitted a gaming license proposal in Abu Dhabi and hopes for clarity within the next year.
- Japan ambitions: Construction began in September on MGM Resorts’ $10 billion integrated resort in Osaka, slated to open in 2030. The group is also pursuing projects in Thailand and New York City.
- Digital strategy: Hornbuckle sees the rising availability of online gaming as complementary, not cannibalizing, to its physical resorts. The company’s Bet MGM digital effort allows year-round engagement with customers, encouraging visits to its resorts rather than making resorts less interesting. But some markets, like Atlantic City, can get saturated.
- Sustainability ambitions: Water conservation in Las Vegas and solar power adoption are key priorities. MGM aims to be 100% carbon neutral in power usage by 2030.
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.
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