MGM Resorts officials optimistic about 2017 performance
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Officials were initially concerned about the upcoming third quarter, he said, but that was before putting a Microsoft conference on the books. Having the Microsoft conference scheduled puts the company ahead of convention roomnights in Q3 2016, COO Corey Sanders said, so the convention rate is a little higher now.
“There’s peak times (in summer) when there’s decent convention business,” Sanders said. “When there’s not, we’ll always fill the rooms, but the rates are always a little bit of a challenge.”
The recently opened MGM National Harbor in Maryland has already become a market leader in its first quarter of operation, Murren said, and the only property with a fair share of premium.
“We see the opportunity to continue at National Harbor to grow revenue, grow margins and cash flows, and we intend to do so,” he said.
The newly acquired Borgata in Atlantic City is the “undisputed leader” in the market, Murren said, and has strong top-line numbers.
There are some assets on the Las Vegas Strip that could be “potentially interesting,” Stewart said, but it’s too early to have any meaningful discussion on any of them. REIT officials have a unique insight into the market given MGM Growth Properties’ headquarters in Las Vegas and its ties to MGM Resorts, he said. As opportunities come up, they’ll want to pursue them.
When asked about expanding beyond gaming properties into a broader leisure space, Stewart said they would consider something they were knowledgeable about as long as it could sustain the dividend.
As of press time, MGM Growth Properties’ stocks were up 12.9% year to date to $28.58.