What Properties is MGM Resorts Selling in Las Vegas?

MGM Resorts International is one of several US casino companies that’s interested in selling property in Las Vegas. It’s a new strategy that many companies are taking in order to invest more money in different US cities and abroad. For now, MGM Resorts selling some of its major properties makes sense.MGM Resorts Logo

This week, the two properties that MGM is interested in selling were revealed. Today, we’re going to look at which hotel-casinos could be sold and how this will affect the company’s future plans.

Let’s get into it!

MGM Resorts International Sells Bellagio and Circus Circus

Las Vegas is home to the country’s biggest and best hotel-casinos. Interestingly, several companies own a huge number of gambling venues here. MGM Resorts International, for example, owns more of these hotel-casinos than any other company.

MGM Resorts is one of the most profitable casino companies in the world. Recently, it’s begun looking at new ways to invest in properties overseas. In order to achieve this goal, MGM has begun selling some of its major Las Vegas properties. Just last month, two popular hotel-casinos here were officially let go.

First, MGM Resorts sold Circus Circus. The property was purchased by Phil Ruffin, who already owns Treasure Island on the Las Vegas Strip. Circus Circus was sold for $825 million.

Just days after, news broke of MGM Resorts selling The Bellagio Hotel & Casino. This legendary casino-resort was sold to the Blackstone Group for an astounding $4.2 billion. MGM is now leasing the property back for a rent of $245 per year.

This company is prepared to keep these property sales up. Officials have confirmed that two other venues could soon be sold.

Is MGM Resorts Selling Too Many Properties?

MGM Resorts is making it clear that they are willing to give up their most profitable casinos. The Bellagio is considered to be one of the most popular and lucrative casino-resorts in the country. It now appears that two additional properties in Las Vegas will soon be sold.

The Las Vegas Review-Journal is covering the news of MGM Resorts selling these venues. The company is interested in selling the MGM Grand and Mandalay Bay Hotel & Casino. These venues could be purchased by MGM Growth, a major real estate investment trust.

MGM Growth departed from MGM Resorts International more than three years ago. Now, officials are discussing plans for MGM Growth to acquire the real estate assets of both MGM Grand and Mandalay Bay.

It’s one of the biggest deals in MGM Growth’s history. The company is now planning to sell more than 24 million shares to fund this new deal with MGM Resorts.

Based on the new reports, MGM Grand will be purchased by MGM Growth and then leased-back to MGM Resorts. It’s a similar deal made with the Blackstone Group.

Eldorado Resorts Prepares for Las Vegas Casino Sales, As Well

As we mentioned earlier, several companies have recently begun selling property in Las Vegas. Eldorado Resorts is nearly finished with its acquisition of Caesars Entertainment. It’s likely that immediately afterward, this company will choose to sell some of its venues.

It cost $17.3 billion for Eldorado Resorts to purchase Caesars Entertainment. Property sales are necessary to help make up for this cost. Exactly which venues will be sold is still unknown.

Shareholders within Caesars Entertainment have just recently approved the merger with Eldorado Resorts. It’s now awaiting regulatory approval.

Eldorado Resorts and MGM Resorts selling property in Las Vegas is reasonable. Both companies want to begin investing more in operations overseas.

Stay tuned for more Las Vegas casino news over the next few months!

The Las Vegas MGM Grand Could Soon Go for Sale

Not long ago, two of the most popular hotel-casinos on the Las Vegas Strip went for sale. Now, reports are surfacing that more of MGM Resorts’ Las Vegas could be put up for sale. Amazing, the Las Vegas MGM Grand could soon go for sale.

Las Vegas MGM Grand

This hotel has long been considered MGM Resorts’ flagship property. For many, it’s a surprise to hear that this venue could potentially be sold. Let’s look at why exactly this company is selling so many of its hotel-casinos.

MGM Resorts Recently Sells Circus Circus and Bellagio

MGM Resorts owns more hotel-casinos in Las Vegas than any other company. Recently, officials within MGM revealed plans to sell some of the company’s biggest properties. Before long, the company did exactly that.

News quickly broke that MGM had sold Circus Circus to Phil Ruffin, owner of the Treasure Island Hotel & Casino. Ruffin purchased the property for $825 million. It’s still unclear exactly what plans Ruffin has for this popular venue.

Amazingly, MGM Resorts also sold the Bellagio Hotel & Casino in October. The Bellagio is widely considered to be one of the best casino-resorts in the world. The Blackstone Group purchased this venue for an astounding $4.2 billion, the biggest hotel-casino purchase in Las Vegas history.

This is all a part of MGM’s “asset-light” strategy. Essentially, the company wants to sell properties in order to help grow the company. The money earned is used to help expand the company in the US and abroad.

Now, reports are surfacing that one of MGM Resorts’ flagship venues could soon go for sale.

Las Vegas MGM Grand Could Soon be Sold

In a conference call, CEO of MGM Resorts Jim Murren commented on the company’s new property selling strategy. Murren confirmed that the company is interested in selling the Las Vegas MGM Grand. This is all a part of the company’s strategy to “unlock” the value from different properties.

Murren claims that MGM Resorts is currently in the process of “monetizing the real estate” of the Las Vegas MGM Grand. More details of this deal are scheduled to come out over the next few months.

The MGM Grand is one of the most popular gambling venues in Las Vegas. It opened in 1993 and quickly rose to become a hotbed of the city. It features a casino floor larger than 170,000 square feet.

This property also holds a massive entertainment area. The MGM Grand Garden Arena has hosted many of the biggest sporting events in the world. A number of major combat sporting events have been hosted here.

It’s unclear how much the MGM Grand will be sold for. It will likely earn MGM resorts billions.

According to Jim Murren, even more sales are currently being discussed.

More MGM Property Sales Are On the Horizon

MGM isn’t the only company prepared to sell some of its major properties. Eldorado Resorts, which is scheduled to merge with Caesars Entertainment, is also currently in the process of selling some of its major Las Vegas venues.

MGM Resorts, however, is selling more properties than any other company. According to new reports, this company is preparing to sell several other properties including the Aria, Vdara, and MGM Springfield in Massachusetts.

Selling the MGM Springfield property isn’t entirely expected. This hotel-casino has struggled to generate revenue for many months. Much of this is due to the success of the recently-opened Encore Boston Harbor, which has captured much of the Massachusetts gambling market.

Jim Murren claims these sales will help the company break into the Japanese casino market. MGM is one of the biggest US casino companies working to obtain a Japanese casino license. The additional revenue earned from property sales may go towards an integrated resort in this country.

We’ll need to wait and see who purchases the Las Vegas MGM Grand and for how much money. Stay tuned for more updates over the next few months!