The boss for one of the biggest USA-based casino operators, MGM Resorts has announced that his company is currently working on developing an asset-light business strategy that could see the company offloading its MGM Grand Las Vegas facility. According to one report released by the Las Vegas Review news outlet, this revelation was made by the company’s CEO and Chairman Jim Murren.
As reported, the Las Vegas-based company’s officials had already a meeting with several of the company’s investors where they have discussed the MGM Resorts International’s third-quarter finances among other subjects including contemplating more casino sales. Just last month, this Las Vegas-based giant inked a crucial, thirty-year lease deal which saw MGM Resorts International sell its Bellagio Las Vegas venue.
Selling Bellagio Las Vegas
The three thousand and nine hundred-room Las Vegas facility was sold to one Blackstone Group LP for around $4.2 billion. The selling of its Bellagio Las Vegas venue was prefaced by a very similar $825-million worth business arrangement for the company’s Circus Circus Las Vegas facility which is located nearby Bellagio. As reported by Jim Murren, these financial transactions will be used by his company as crucial blueprints for any other future arrangement of this kind which may relate to its Aria Resort and Casino and MGM Grand both located in Las Vegas.
Such future arrangements also encompass the company’s Vdara Hotel and Spa as well as its MGM Growth Properties and MGM Springfield ventures. The company’s CEO and Chairman Jim Murren said that the company’s latest financial transactions were crucial steps for the company’s new future which does not mean the end for MGM Resorts International.
In his official press release, Mr. Murren said that the company’s Bellagio Las Vegas transaction actually represents much more for his company than a simple, very smart financial decision. He said that it provides a great blueprint for the company’s future deals of this kind. He also added that the company’s process related to monetizing its real estate for the MGM Grand Las Vegas facility is underway while more details on this will be shared soon.
Focusing on Future Casino Sales
According to the company’s boos, the majority of the MGM Resorts International’s proceeds from any upcoming casino sales would be generated to fully support the firm’s already envisioned global rollout of gaming activities including sportsbetting as well as the company’s plan to construct and operate a fully integrated casino resort in Osaka.
Jum Murren also told news outlets that for his company, developing an asset-light business strategy means separating the company’s ownership of lower-return and capital-intensive assets and finally recycling this particular capital into some higher return on its future investments. On the other hand, several newspapers reported that the most recent company’s sale of its Circus Circus Las Vegas venue had put MGM Resorts International into a massive dent.
It was detailed that the company’s third-quarter combined earnings recorded a massive $37 million deficit when compared to the same period last year which has brought a great nine percent increase in generated revenues which amounted to around $3.3 billion. However, the company’s boss described these numbers as in line with the MGM Resorts International’s earlier projections and as solid. He finished his press release by saying that his company would definitely enjoy a brighter financial report for the next fourth-quarter period thanks to its upcoming entertainment offerings.