Question of the Day - 27 January 2022

We don’t think there’s any reason to fear for the survival of Excalibur and Luxor. Rumors of their demise have been going on for years and have never demonstrated any substance.

What has changed is MGM Resorts International’s plan for its surplus Excalibur land, currently occupied by surface parking. Just days after MGM CEO Bill Hornbuckle said, “We have enough Las Vegas,” he was contradicted by CFO Jonathan Halkyard. The latter outlined a possible new hotel tower on the South Strip, one that would go in front of where Excalibur currently sits.

“That’s our neighborhood,” Halkyard told investors. “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.”

Specifically, he added, “There’s seven acres in front of the Excalibur. That’s equal to the entire footprint of The Cosmopolitan. I’m not suggesting we’re going to build a 3,000-room tower there, but that’s a significant development opportunity potentially.”

He also floated the idea of improving access to MGM Grand, maybe both.

While it’s a stretch that MGM could have a new hotel by 2024, it clearly knows the math. In addition, as the closest hotelier to Allegiant Stadium, the company stands to benefit from having as much room inventory on tap for the Super Bowl as possible.

Love them or loathe them, Excalibur and Luxor (which is rumored to be in line for a renovation, not a demolition) will be here long after the Super Bowl fans leave town.