MGM Resorts International owns and operates some of the most successful hotel-casinos in Las Vegas. This week, officials at this company announced that fees at MGM Las Vegas hotels are increasing once again. Today, we’re looking at why this decision was made.
We’ll also be talking about which hotels are seeing their fees increase. Later on, we’re going to talk about the recent revenue spike in Las Vegas. There’s a lot happening here!
Why Are Fees at MGM Las Vegas Hotels Rising?
It’s not uncommon for major hotel companies to raise their resort fees. In case you’re unaware, resort fees are mandatory charges that hotels charge to their guests. The money from these fees to help pay for amenities such as pool use, gym access, Wi-Fi, and more.
Generally speaking, these fees are not unusually high. The bigger and better the hotel is, the higher the resort fee will be. This week, MGM Resorts International has announced that it’s raising resort fees in three separate Las Vegas hotels.
MGM Resorts Spokesman Brian Ahern confirmed the news on Friday. Fees will rise by $6 in three hotels. Ahern states that these new fees are based on the local and national market standards.
“We are constantly evaluating prices to ensure they properly reflect the business landscape and the services and amenities they support,” Ahern said to the media.
Which Hotels’ Resort Fees are Increasing?
MGM has confirmed that fees will soon raise for the Aria, Vdara, and Bellagio. The daily resort fee for each of these hotels is now set at $45. Many hotel and gaming analysts are surprised at the fee increase.
Back in March of 2018, fees at MGM Las Vegas hotels increased. Corey Sanders, Chief Financial Officer of MGM Resorts International, stated that the company had no plans to raise fees in 2019. It appears the company had a change of heart.
Two of these hotels, the Aria and Bellagio, are considered by many to be the top casino-hotels in Las Vegas. Both offer huge gaming space with hundreds of slots and table gaming options.
Some of MGM’s top competitors including Wynn Resorts and Caesars Entertainment (which is set to merge with Eldorado Resorts) have stated they have no plans to raise fees in their hotels. A number of major hotel chains have recently come under scrutiny for their use of hotel fees. Even the Marriot is being sued over the use of resort fees.
The new fees at MGM Las Vegas hotels come at an interesting time. Revenue in this city has finally begun to increase.
Las Vegas Casinos Experience Revenue Increase for the First Time in 2019
Recently, our team reported on the news that Las Vegas revenue has finally increased. For the first five months of 2019, gambling earnings in this city dropped significantly. In June, revenue on the Las Vegas Strip increased by 17.7%.
Interestingly, Baccarat helped to boost the city’s revenue. Casino revenue from this game rose by 19.5% in June. Many are now waiting to see whether or not Las Vegas’ revenue increased once again in July.
Lawmakers in this state have not yet regulated the online casino industry. Many of the land-based casino operators feel it will take revenue from their gaming establishments. There are, however, a wide range of popular online casinos in Nevada not regulated by the state.
Most of these internet casino sites offer just as many, if not more, than the top brick-and-mortar casinos in Las Vegas. It wouldn’t be a surprise to see Nevada regulate its online casino industry within the new few years.
There are many that feel the revenue increase is a reason why fees at MGM Las Vegas hotels are increasing. As we mentioned earlier, no other major casino operators plan to raise their resort fees. Make sure to stay tuned for more Las Vegas casino news!