Thursday, April 29, 2021 | 12:13 p.m.
Hotel occupancy at MGM Resorts International properties on the Strip is on the rise.
During a quarterly earnings call Wednesday, MGM officials noted a steady increase in occupancy at the company’s nine Las Vegas resorts.
Though the company is still waiting for the convention industry to return to help boost midweek hotel occupancies, the weekend occupancy rate in March was 85%, MGM Chief Financial Officer Jonathan Halkyard said. During the week, the rate was 52% in March.
From Jan. 1 through March 31, total hotel occupancy for MGM’s Las Vegas resorts came in at 46%, up from 38% during the fourth quarter of 2020.
Hotel occupancy for all Strip resorts was about 56% in March, according to the Las Vegas Convention and Visitors Authority.
In the second quarter, which began April 1, MGM’s hotel occupancy in Las Vegas has been just over 70%, Halkyard said.
MGM properties account for about 31,000 rooms on the Strip, including 6,000 at its largest property, the MGM Grand.
Bill Hornbuckle, MGM’s president and CEO, lauded the progress being made as Las Vegas continues to dig out of the economic downturn caused by the coronavirus pandemic.
Crowds along the Strip have noticeably increased in recent weeks, especially on weekends.
“It’s been great to see Las Vegas come alive again to the vibrant destination that we’ve all come to love and enjoy,” Hornbuckle said. “Our gross bookings in March were one of the best months in the company’s history. Leisure demand is clearly improving.”
Hornbuckle said officials expect “robust leisure demand” throughout the spring and summer months in Las Vegas, predicting weekend hotel occupancies would likely be in the 90% range soon.
Despite rosy period-over-period results during the first quarter in many areas, the company is still operating at a level far below where it was in 2019.
MGM reported $1.6 billion in net revenues during the first three months of 2021, which was off about 27% compared to the first quarter of 2020.
Much of the decrease was due to midweek property closures, lower business volumes and travel activity, and operational restrictions due to the pandemic, the company reported.
MGM posted an overall net loss of $332 million during the first quarter. At its Strip resorts, MGM reported net revenues of $545 million, a decrease of 52% from the first quarter of 2020.
MGM’s businesses in Las Vegas isn’t likely to return to pre-pandemic levels until international travel into Southern Nevada picks up.
“We’re pleased with the improving operating environment, domestically,” Hornbuckle said. “I’m optimistic about the long-term recovery of all of our markets.”
