Resorts World LV delayed (again); Lady Gaga reigns supreme

Resorts World Las Vegas has reached the 39th of a projected 60 floors. However, Genting Group is cautiously hedging its bet, telling Credit Suisse analyst Cameron McKnight the resort will be finished “by 2020,” not late 2019, as stated previously. Somehow it just wouldn’t be Genting without yet another project postponement. However, by skipping 2019, the company may be doing itself a mitzvah: An unidentified UNLV economist has projected flat gross gaming revenue for Las Vegas next year. It’s getting harder and harder to get Americans to come gamble in Vegas when they can do it close to home — and without paying resort fees.

In an interesting side note, McKnight writes, “Lady Gaga’s Enigma show has already outsold Celine Dion’s eight-year Las Vegas residency.” Long live her Ladyship. MGM Resorts International did well to put its eggs in the Gaga basket.

* Mark your calendars. January 6 is the date when Derek Stevens will unveil his grand plan for what will replace the late, unlamented Vegas Club (and sundry nearby businesses). All that Downtown Derek and Greg Stevens will say is that it “celebrates the timeless spirit of the city.” That’s certainly tantalizing and, after such a long and cagey delay, we hope that the “wow” factor of what is to be revealed is equal to the wait.

* “2019 is shaping up to be much better than 2018.” That’s JP Morgan analyst Joseph Greff‘s conclusion after meeting with MGM CFO Dan D’Arrigo. Among the factors leading to this outlook are “easy Y/Y comparisons, a more benign calendar, and better performance from Mandalay Bay and Park MGM.” Yes, 2018 has been such an underwhelming year that 2019 will not be hard-pressed to better it … unless those UNLV projections come true. As for MGM, it’s got 80% of its convention room nights booked and is looking to fill the “shoulder periods” by milking its loyalty database. “Peak period rates are tracking flat to slightly higher,” group bookings higher still. Improvements are manifesting themselves at Bellagio, Aria and MGM Grand.

Mandalay Bay reached 80-85% of previous levels of occupancies, numbers upon which MGM plans to improve next year. The soft rollout of Park MGM continues, with MGM prioritizing high room rates over occupancy levels. Once it is fully operational, MGM projects the reinvented property will do as much as $150 million in annual cash flow — double what it got from Monte Carlo. Will MGM buy Dubai World out from CityCenter? Greff says the company “has an open-door policy for dialogue” with the emirate. Definitely on the budget is $650 million-$700 million in capex maintenance, with most of that going toward big IT initiatives. As for troubled MGM Cotai, ownership is now admitting to “being somewhat late to the game for VIP offerings” but promises to have everything on line for next Chinese New Year, as it looks nervously toward concession renewal in April 2020. They’d better get a renewal (or at least a postponement) lest the resort become The Casino That Ate MGM.

To the company’s credit, it has established a $1 million scholarship fund for employees’ children. The intent of the program is described as “to help high school graduates increase their access to post-secondary opportunities, including universities, community colleges and recognised certification programs.” Executives can forget about applying: The fund is only for domestic employees. (Bravo, MGM.) The Public Education Foundation, based in Vegas, will manage the fund. Financial need and academic performance will be the leading criteria when scholarships are awarded. Says CasinoBeats.com, “this scholarship will be available to selected applicants for a maximum of four years, as long as they remain enrolled and in good academic standing.” Good on you, MGM, for supporting upward mobility.