Two Way Hard Three | Las Vegas Casino & Design Blog

April 27, 2006

MGM MIRAGE Reports Quarterly Results: Profit Up 30%

Posted by Hunter

Today is a quarterly reporting day for MGM MIRAGE and report they did... Profits up 30%. They claim $135 million in savings from the combined MGM/Mandalay properties. I'll be listening to the conference call and updating this story as soon as I can - Windows Media Player is not cooperating at all.

Net revenues for the quarter were $1.9B and 'same-store' revenues were $1.2B, up 4% (they did 4% better even without the MBG acquisition). Occupancy stands at 97% (!) and the ADR (average daily rate, key indicator in hotel/leisure reporting) was $181 (up $5 from last year). REVPAR (revenue per available room - another key metric) was also up $5 to $175.

Quickly reading some of the detail, it looks like they wrote off about $24 million related to the Bellagio/Monte Carlo tram. This sounds like the tram is back out of service to accommodate CityCenter development. Eventually CityCenter will link the properties.

$380 million was spent on capital improvements, including CityCenter, The Mirage, Beau Rivage, and MGM Grand Detroit.

Update:


The Mirage will be the site of a new ultra lounge called 'Revolution', based on the Beatles and opening in the fourth quarter.

Supposedly the new Mirage restaurants are doing great and Japonais is scheduled to open in August.

CityCenter design for the main hotel is complete and excavation is underway. Foundations will be poured in about a month.

The Boardwalk demolition will take place on May 9th.

The new Bellagio parking garage (employees) is going to open in July.

CityCenter will have a sales center between Monte Carlo and NYNY and also 'discovery centers' in the lobbies of Bellagio and The Mirage.

Beau Rivage construction is progressing. Apparently the restaurants will be completely new, none of the old concepts are being rebuilt.

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Categories: Bellagio, Business of Gaming, CityCenter, Las Vegas Strip, MGM Resorts International


Comments

Read archived comments (5 so far)
April 27, 2006 11:33 AM Posted by mike_ch

Renders at one of the development sites show a tram beam kind of swerving around between the PCC buildings. However, the train on the beam was rather designed off the LV Monorail than the current tram.

They also show a large 2-level thoroughfare connected to Frank Sinatra, but due to the angles you can't see if it meets up with the strip, and it certainly doesn't match with the Harmon light. It would be really appreciated if MGM would finally open up Harmon all the way

April 27, 2006 11:56 AM Posted by Mike P.

The tram is gone. They were removing the tracks as part of general demolition/site preparation work back in March.

You can see the gap in the tracks in the Google Earth shot, which must have been taken right around the time of our March stay.

Mike P.

April 27, 2006 10:30 PM Posted by Mike E

There hasn't been much word regarding "Mink", the lounge that was announced alongside Jet. I wonder if "Revolution" is its replacement.

April 27, 2006 10:34 PM Posted by Hunter

It may or may not be. I was told that the area between the watch shop/guest elevators and the Players Club signup was going to be Mink. Its slots now. Who knows... Maybe it was converted.

June 18, 2006 9:41 PM Posted by josh

Are the rooms supposed to look much newer and better since on their site under rooms, they look exactly the same and do you know about the restaurants opening: are they all going to be new because they have quite a few old restaurants listed in the Beau Rivage site.