MGM Resorts International recently announced that they are laying low on new developments and will focus on the Las Vegas Strip once they finish all pending constructions in domestic and international markets.
During MGM’s third quarter conference call with investors, CEO Jim Murren said that the company’s spending spree on new developments in the past years is coming to a halt. Last year, MGM purchased 50 percent of Boyd Gaming's stake in the Borgata Hotel and Casino in Atlantic City for $900 million and opened the $1.4 billion MGM National Harbor in Maryland.
The company is also expected to open its $3.3 billion MGM Cotai in Macau in January 2018 while the $960 million MGM Springfield is scheduled to open in the fall of 2018 in Massachusetts. The complete overhaul of Monte Carlo Las Vegas Hotel and Casino is also in the works and is expected to be ready by September 2018 opening. MGM is estimated to have shelled out more than $7 billion for these projects alone.
Murren stated that the scheduled completions will be the last in their development cycle. Moving forward, MGM will focus on channelling their capital to their biggest and strongest market which is Las Vegas. The only exception to this will be the company’s proposed venture in Japan, which is currently on hold as MGM is waiting on Japan to finalize the legal framework for their Integrated Resorts (IR) Promotion bill which is expected to be completed next year.
Gaming analysts believe that MGM Resorts could be one of the firsts to secure a gaming license in the country when it begins taking bids next year. MGM Resorts have stated in the past that they are prepared to invest up to $10 billion on the proposed integrated casino resort in Japan.
For the moment, MGM is focused on the completion and rebranding of the Monte Carlo in Las Vegas. The casino resort is currently being remodeled into two separate hotels: Park MGM and The NoMad boutique hotel. Work on the Monte Carlo started in June 2016 and cost MGM $450 million. Park MGM will be a 2,700-room luxury hotel, tied aesthetically to the grand exteriors of the MGM. The NoMad will be a separate, quainter hotel in the same vicinity with its own lobby, casino and resort facilities, alongside 292 guestrooms and suites.