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.
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!