MGM Resorts International recently shared a cautiously optimistic outlook on Las Vegas despite some summer softness in tourism. The Las Vegas Convention and Visitors Authority (LVCVA) reported an 11.3% year-over-year drop in June visitors, a 6.5% decline in hotel occupancy, and a 13.8% fall in revenue per available room.
However, MGM CEO Bill Hornbuckle emphasized the market remains “fundamentally solid,” citing Las Vegas’ nearly 5% annual growth in gross gaming revenue and upcoming major events like the Canelo-Crawford fight, Paul McCartney’s residency, the Formula 1 Grand Prix, college football championships, and the Final Four through 2028.
Market dynamics and trends
Hornbuckle noted the typical seasonality affecting summer months, with a nine-week booking decline starting in May now reversing with growth seen in three of the past four weeks. The company relies heavily on short booking cycles, with half of reservations made within about 30 days. Furthermore, a strategic partnership with Marriott International’s Bonvoy loyalty program has boosted second-quarter bookings by 31%, bringing high-quality customers who spend more per room night.
International visitation remains a challenge, particularly from Canada and Southern California, the latter being Las Vegas’ largest visitor source. This reflects broader economic pressures and travel preferences. MGM’s luxury properties like the Cosmopolitan, Bellagio, and Aria continue to perform well, targeting premium customers while addressing value concerns.
MGM’s financial and operational updates
The MGM Grand’s ongoing room remodel and an abnormal hold in revenue accounted for most of the company’s adjusted EBITDAR decline of $72 million for the quarter. The remodel is set to be complete by the end of October. Despite midweek softness at value-oriented properties, MGM’s regional operations posted strong results with record revenues and slot wins. MGM China also reported gains in market share even amid adjusted losses.
MGM is also advancing major projects including Japan’s MGM Osaka slated for 2030 and a Dubai development targeted for late 2028. In Las Vegas, construction started on a $1.8 billion MLB ballpark that will bring 400,000 new visitors annually, complementing the footprint of MGM’s nearby venues.
Key takeaways
- Las Vegas saw an 11.3% drop in June visitors compared to 2024, but large-scale upcoming events and convention bookings are accelerating.
- MGM’s short booking cycles help capture late momentum, with a 31% increase in Bonvoy channel bookings and plans to finish the MGM Grand remodel by October.
- Regional properties and international markets like China contribute solidly amid ongoing investments in new assets.
- The city is navigating a soft summer with some visitor shifts from Canada and California, but premium luxury offerings remain strong.
Despite some travelers staying home this summer, MGM’s leadership remains upbeat about a busy fall and beyond. In Vegas, the odds are always shifting—and MGM is positioning itself to come out ahead with major events and a busy season on the horizon.
