MGM says event activity has ‘never been stronger’ in Las Vegas

MGM Resorts International (MGM) President and CEO Bill Hornbuckle joins Josh Lipton from the Skift Global Forum to discuss the hotel-casino operator’s performance and outlook.

While investors worry if Las Vegas has hit its peak, Hornbuckle explains that it ebbs and flows. He notes that MGM had an “amazing year” in 2023 and kicked off 2024 strong with major events like the Super Bowl and Formula 1 racing. He adds that the company’s convention business remains strong, and that event activity “has never been stronger.”

“Our ability as a destination to run in the low 90s has never ceased. Even during the 2008 Great Recession, it went down to 82%. So driving traffic, driving people is kind of what we do, and we do it well,” Hornbuckle says.

While inflation has pressured the consumer, Hornbuckle highlights that MGM has continued to see success among higher-end consumers: “Our ability to drive event activity, drive average rates on the weekends has been very strong. Although other side of the spectrum, we have eight regional casinos, all performing on par as best as they’ve ever performed. And so obviously that tends to attract a different clientele base.”

He adds that over half of MGM’s visitation comes from event activity, saying, “People have always wanted and needed an excuse to come to Las Vegas, and we continue to provide it.” He points to the success of Allegiant Stadium, as it puts on events from football games to Taylor Swift concerts.

Amid a weak economy in China, Hornbuckle explains the company has reached a “plateau” in the market. He expects the value of Macau’s betting market to fall to $25 or 26 billion from its pre-pandemic $35 billion. “Our particular company has plateaued in terms of share. We now enjoy mid-teens in terms of market share. So we’re equally as excited by that,” he says.

With competition from names like FanDuel (FLUT) and DraftKings (DKNG), Hornbuckle argues that what sets MGM apart is its ability to “bring things to life, to then bring you to Las Vegas.”

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This post was written by Melanie Riehl