MGM Resorts’ reported a drop in Las Vegas Strip revenue in the second quarter, pointing to broader signs of visitor softness in the city — especially at value-oriented properties.
Net revenues for the company’s dozen hotels on the Strip fell 4% to $2.1 billion.
All that is going on in the U.S. Economy and the global economy has an impact [at the value-oriented properties]”, said CEO William Hornbuckle in a call with investors on Wednesday.
Through July, the company experienced “a very unusual weakness in midweeks” at Luxor and Excalibur budget resorts. The MGM Grand was another problem area, as it had major remodeling interruptions.
Bookings fell by a year in the nine weeks following the announcement of tariffs, starting in May. It has seen an increase “in 3 out of the last four weeks.”
Vegas’ premium travelers did not pull back. MGM Resorts luxury properties experienced gains in the second quarter. The Bellagio’s average daily rate was up by 4%.
