MGM Resorts plans massive refurbishments and Improvements
The MGM International Resorts in Las Vegas is planning to spend more than $2.5 billion dollars to renovate and upgrade Macau’s Cotai Strip. Such improvements can be made thanks to the profit that the area is making. According to the Resort’s administration the area is garnering about 20 percent of the total visitation of the resorts.
Another area that is incredibly important for the resort is the $100 million attraction area built right in front of the MGM Grand. This area has a huge and beautiful outdoor balcony that overlooks the Strip, once again increasing the overall number of visitors monthly.
Another fact of interest to the Casino fans is that the City Center area will receive some other improvements and an overall refurbishment. The MGM Resorts Chairman Jim Murray stated back in February 2013 that some parts of the City Center will be sold. The Vdara hotel and the Crystal retail and dining complex are to be sold to the right buyer. There are parties already interested in purchasing the Crystals area. The Crystals area alone could generate as much as $800 million dollars if sold at the average market retail value. This money would be extremely welcome for the expansion of the MGM Resorts in general.
In fact MGM resorts are also planning the creation of new Casino and hotel complexes in Springfield, Mass as well as at the National Harbor complex in prince George’s County in the state of Maryland. The money would also be used to pay off some debts that the MGM Resorts have acquired over the last few years. The debt is around $2 billion dollars and is planned to be paid off in the next 6 months.
The MGM Resorts International chief executive believes that the more they invest in the Las Vegas Strip market isthe best, since these areas are bringing them excellent profit. This fact allows the MGM International Resorts increase their cash flow and apply more efficient marketing, to increase the number of visitors each and every single day. The City Center area was built with around $8.5 billion dollars and took more than 5 years to be finally completed. After one year of opening the area’s value decreased to a little over $2.6 billion dollars.
However, with the investments in the Persian Gulf Emirates, and the Dubai World the MGM Resorts see a light at the end of the tunnel! They believe that by selling the City Center and 5.5% of the MGM Resorts in general they would be able to solve all of their money issues. With this money the MGM Resorts plans on paying off some debts and also spending around $350 million with improvements, such as refurbishing hotel rooms, common areas and other amenities at several different Strip hotel Casinos.
The team is also planning to renovate other areas such as the outdoor entertainment and retail district between New York and Monte Carlo with a parking area and a plaza. The team also plans in creating a 20.000 seat arena to be created behind these two resorts.