Thursday, October 29th, 2020 | 4:30 PM
Company officials said today that MGM Resorts International is considering closing some of its properties on the Las Vegas Strip during the week.
MGM CEO Bill Hornbuckle said on the quarterly earnings call: “We are doing an exercise, and we are doing it now, about what we keep open and close.
He said: “From the beginning of the holidays to mid-November, certain equipment, certain towers and certain brands may face closure.”
After the conference call, a MGM spokesperson said in an email that any closure may be limited to mid-week, rather than a complete closure.
Hornbuckle made the above remarks because someone asked him whether MGM, which owns 10 Strip resorts, will follow the leadership of other Strip operators, such as Wynn Resorts. Due to the coronavirus pandemic, weak demand has led to business hours for certain properties. limited.
Hornbacker said: “We have been paying close attention as we move forward.”
MGM officials stated that the company has been proficient in changing the level of staffing and the availability of certain amenities.
According to data from the Las Vegas Convention and Visitors Administration Bureau, in September, the midweek hotel occupancy rate in Las Vegas was 39%, a 47% decrease from the same month in 2019. The weekend occupancy rate was 66%, a 30% decrease from September 2019.
Wynn announced at the beginning of this month that it would cut Encore’s operating schedule to four days a week due to the sluggish customer demand, and close it in the middle of the week.
For the three months ended September 30, MGM’s reported net income was $1.1 billion, a 66% decrease from the third quarter of 2019.
The company’s net loss for the quarter was $535 million, and its diluted earnings per share were approximately $1.08.
During the third quarter of 2019, the company reported a net loss of approximately $37 million.
At MGM’s Las Vegas Strip property, net income for the quarter was US$481 million, a 68% decrease from the third quarter of 2019.
The decline is mainly due to the impact of the global coronavirus pandemic.