“It’s a space we’ve indicated many times we want to be progressive in and be dominant in, in a both domestic and potentially a global basis.” “We are just getting started in the digital world,” Hornbuckle said. Online gaming investment can happen much earlier. The property in Japan isn’t likely to get underway until 2024 while the 97-acre New York casino may not see an infusion of capital until 2023. Hornbuckle even touted potential in boosted development at the company’s Empire City Casino outside New York City.īut casino developments take time. Many of those real estate proceeds are getting pumped into newer areas, whether it’s the potential for a $10 billion resort in Japan or its BetMGM platform. MGM Resorts continues to move away from real estate ownership and into more of an asset-light management role akin to traditional hotel companies. “It fell pretty far down the spectrum in terms of how much capital we’d allocate to it.” New Frontiers “I’m excited for someone to come in and make it their marquis property,” Hornbuckle said of the Mirage. The Cosmopolitan deal was part of a $5.65 billion Blackstone sale, poised to become the investment firm’s most profitable single-asset sale. MGM Resorts executed a string of sale-leaseback deals in recent years with Blackstone where the investment firm takes over ownership of the real estate while the gaming company maintains management rights. Investor Dreamscape announced earlier this year plans to overhaul its Rio All-Suite Hotel & Casino into a variety of Hyatt brands without disclosing a price tag. “We think there is an opportune time and that this may be it to sell an asset in Las Vegas.”Ī potential sale comes after Las Vegas Sands moved earlier this year to sell its Venetian Resort Las Vegas and the Sands Expo and Convention Center to investment firm Apollo Global Management for $6.25 billion. “As we looked at capital allocation, we have enough of Las Vegas,” Hornbuckle said on Wednesday’s call. The Mirage fell down MGM’s list of financial priorities amid a changing business model increasingly focused on digital gaming and away from the headache of owning real estate.
The sale exploration talks come after the company announced plans in September to acquire the operations at the Cosmopolitan of Las Vegas for $1.6 billion and won a bid to become a resort partner to bring a casino to Osaka, Japan. The company, which operates about 40,000 hotel rooms across 13 resorts in Las Vegas, plans to sell operations of The Mirage, MGM Resorts CEO William Hornbuckle announced Wednesday on a third quarter earnings call. Even MGM Resorts hits a limit on how much of Sin City it can take.
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