Vegas News November 8, 2020
Feature story: Pushing Forward Back
Pushing Forward Back by Temple of the Dog is a song I think about often. I don’t know what the actual lyrics are other than the chorus, but these words often come to mind when I think of doing business. It’s also a good entry point to discuss our main theme this week: MGM Opens and Closes.
Sometimes progress is two steps forward and one step back. It feels as though there’s a lot of this happening in Las Vegas this year. Take MGM Resorts for example. One week they announce all properties in Las Vegas are open. A couple of weeks later, things are already changing.
MGM Opens And Closes
Well, last week MGM Resorts said the company would close some properties in November and December. Skip ahead just a few days and MGM Resorts announced that the hotel at Park MGM would close during weekdays due to slow demand in the month it was open.
Positive Reallocation – Park MGM to NoMad
NoMad hotel will remain open while the main hotel at Park MGM is closed. On a positive note, it appears as though Park MGM reservations are getting a nice upgrade to NoMad rooms. The rack rate is usually about $50 more per night so this could be seen as a score for those who had reservations at less expensive Park MGM.
While MGM Resorts is opening some shows, the company is also closing the poker rooms at Excalibur, Mandalay Bay, and The Mirage permanently. The rooms have already been repurposed so this isn’t much of a surprise.
The Mirage poker room is now a non-smoking slots room. Mandalay Bay is using the room as an overflow lounge at the sportsbook. MGM Grand will host some freeroll poker tournaments using poker money from the closed rooms. You can find the details here.
What’s Next – MGM Opens And Closes
I wouldn’t be surprised to see MGM Resorts closes at least another hotel and/or tower. During the company earnings call, they noted that Park MGM was the only property that didn’t generate positive cash flow during the third quarter.
Cash Flow Problems
Mandalay Bay was the only property in the second quarter with similar cash flow problems. That property made money in July, August, and September because the seven-acre pool complex brought families to the property. Now that winter is here (high temps in the 50’s! Brr) it wouldn’t be a big surprise to see at least part of Mandalay Bay close along with most of the pools.
It seems as though there’s something new between openings, closings, limited hours, capacity changes happening regularly. Keep your eyes peeled for more changes at MGM and all Las Vegas properties as coronavirus ebbs and flows. All businesses around the country have to adjust to local conditions and Las Vegas is no different.
Las Vegas Quick Hits
The current Vegas News format was made for weeks like this. We have lots of Quick Hits from all over Las Vegas – including some wild occupancy news for Caesars properties you might have missed. Let’s get to it starting with this odd dog robot shopper from Wynn.
- Wynn Resorts posted third-quarter earnings.
- During the call, Wynn touted the high ADR (Average Daily Room Rate) during the 3rd quarter. The company accounted that the price for rooms in the third quarter was a whopping $269 per night.
- Speaking of Wynn Las Vegas, there’s a new Hermes in the shopping plaza. Read more here.
- Check out the tech specs on the video wall at the Circa sportsbook here.
- Caesars also reported third-quarter earnings this week. There were quite a few nuggets during this call.
- Caesars CEO Tom Reeg says the company expects to open RIO All-Suite Las Vegas Hotel and Casino before the end of the year. Expect a limited opening similar to PLANET HOLLYWOOD Las Vegas Resort and The Linq.
- Interesting note from Reeg about Caesars Las Vegas occupancy during the third quarter – Occupancy was just under 60%. That sounds okay but the company saw mid-90% occupancy on the weekends and mid 50% during weekdays. He touted Caesars Rewards for the reason so many people stayed at Caesars properties in Las Vegas during the weekend.
- Another compelling comment was about how much pent up demand Caesars is hearing about from its customers. Reeg says it is going to be “beyond your wildest dreams” in a post COVID world. Of course, he doesn’t know when that will be.
- Hopefully, post-COVID isn’t like this new Michael Bay movie trailer.
- Last week we gave you a heads up that Las Vegas Sands is considering selling its Las Vegas properties (The Venetian and The Palazzo). This week it looks as though a couple of REITs (Real Estate Investment Trust) might want to purchase the land/properties. MGM Growth Properties and VICI have both expressed interest. Different companies would operate the casinos if purchased by a REIT.
- Unrelated, it appears as though VICI is holding off on selling some land on the Vegas Strip. Read more here.
- Aria was fined for COVID violations. Read about it here.
- The Cal has new paint. Look at the pretty here.
- The Venetian is planning on having a Christmas show. Read more here.
- Speaking of The Venetian, they have some package deals available again.
- Sean Connery passed away on Halloween. Here’s a video of the man from “Diamonds Are Forever” in downtown Las Vegas.