News Source: www.travelweekly.com
MGM Resorts reports strong booking for Las Vegas properties
News Source/Courtesy: www.travelweekly.com

MGM Resorts CEO Bill Hornbuckle reported that the gaming giant's Las Vegas business saw some of its best gross booking performance in company history in March, fueled by pent-up leisure and casino demand.

"Our initial recovery has been strong," Hornbuckle told investors during MGM's first-quarter earnings call on Wednesday. "We expect robust leisure demand throughout the spring and summer months, with hotel occupancies in the 90% range on the weekends. Weekdays will increasingly be driven by meetings and conventions, and our group business remains solid in the back half of this year."

Average first-quarter occupancy for MGM's Las Vegas Strip properties, which includes casino-resorts the Bellagio, MGM Grand, Mandalay Bay and the Mirage, came in at 46%. That compares to 38% occupancy for MGM's Las Vegas business in the fourth quarter of last year.

Furthermore, the company has seen its Strip occupancy improve steadily in recent weeks, with March occupancy averaging 62% and March weekend occupancy surging to 85%. For the month of April through the 24th, Hornbuckle said Strip occupancy averaged around 73%.

Corey Sanders, MGM Resorts' CFO and treasurer, estimated that the company could potentially hit the 90% monthly occupancy range by early 2022, provided group business returns to some level of "normalcy."

"Larger groups are expected to return at scale in 2022," added Hornbuckle. "Our business in 2022 and 2023 is on pace with pre-Covid levels."

Staffing challenges

Meanwhile, Hornbuckle acknowledged that MGM has faced some challenges stemming from the national labor shortage, with the company "caught off guard" as business began to pick up quickly in March. 

Today, he estimated the company has around 1,300 job openings, though he said that number remained roughly on par with the number of openings the company had circa mid-2019.

"It was just the velocity of how quickly [business] came back," said Hornbuckle. "Our teams have done a great job in responding. And I think you'll see us get back to the place where service levels are where they need to be, because we'll be able to staff up."

According to Sanders, the company has "instituted some things on the hiring front to help alleviate some of that pressure" and expects to be able to "catch up" on the staffing front within the next 60 days. 

For the first quarter, MGM's Las Vegas Strip business revenue was down 27% from the same quarter last year, totaling $545 million. The group's domestic regional revenue declined just 2% in the first quarter of 2020, to $711 million, while its MGM China arm, which includes the MGM Macau and MGM Cotai properties, saw revenue dip 9%, to $296 million on the same period last year.

Companywide, MGM Resorts reported a first-quarter revenue decline of 27%, to approximately $1.6 billion.

Fill the numbers here
If not readable, please refresh.
Refresh

News Source: www.travelweekly.com

You Might Also Like

Leave A Comment

Don’t worry ! Your email address will not be published. Required fields are marked (*).

Fill the numbers here
If not readable, please refresh.
Refresh

Fill the numbers here
If not readable, please refresh.
Refresh

-: Disclaimer :-


This article has been aggregated from www.travelweekly.com and they maybe/are the copyright owners of the same. If you are the Author/Copyright owner of this article and want us to remove the same then send an email to admin@hoteliers.news so that we can delete it immediately. We sincerely regret and apologies for any inconvenience caused to you due to the same. Though it is your decision but please take note that the link to your website and the article have been given above, within and on the bottom of the article.

Hoteliers In Limelight

Voting Poll