MGM Resorts’ reported a drop in Las Vegas Strip revenue in the second quarter, pointing to broader signs of visitor softness in the city — especially at value-oriented properties.
The company’s dozen properties on the Strip saw their net revenues fall 4% year-over-year to $2.1 billion.
“All that’s going on in the global economy and the U.S. economy, there is impact [at the value-oriented properties],” said CEO William Hornbuckle during an earnings call Wednesday.
The company saw a “severely abnormally midweek weakness” at its budget resorts Luxor and Excalibur through July. Another problem spot was the MGM Grand, which had severe remodeling disruptions.
Starting in May, after the tariff announcements and lasting for nine weeks, the company saw year-over-year declines in bookings. However, it has more recently seen an increase in bookings “in 3 of the last 4 weeks in a row.”
Premium travelers didn’t pull back in Vegas. In the second quarter, MGM Resorts’ luxury properties saw gains. At the Bellagio, average daily rates were up 4%.