The Short Take:
- REVPAR fell 3.9% at MGM’s Las Vegas Strip hotels when compared to last year, and every single hotel saw a YOY REVPAR decline
- Three of the company’s higher end hotels in Vegas had better than average YOY change in REVPAR, but they were still negative: Bellagio, MGM Grand and Aria
- Three MGM Vegas hotels had YOY REVPAR declines south of 6%: Circus Circus, Excalibur and New York New York
Revenue per available room, or REVPAR, declined at every single one of MGM Resorts’ Las Vegas Strip hotels when comparing Q3 2018 to the Q3 2017. Like the drop in ADR that we discussed in an earlier article, this drop in REVPAR was likely a big factor in the 1.2% revenue decline for the company’s Rooms operating segment.
In the charts at the end of this article you can take a look at both the REVPAR for each MGM Vegas property as well as the year-over-year decline in REVPAR. But before we get to those charts, we’ll highlight a few of the REVPAR numbers that popped out from MGM’s quarterly press release.
Combined REVPAR at MGM’s Las Vegas Strip hotels was $146 in Q3 2018. This was a 3.9% decrease from the REVPAR of $152 a year earlier. Multiply this $6 decrease by the hundreds of thousands of guest-nights at the company’s 40,000+ Vegas hotel rooms and this 3.9% drop is significant.
It should be noted that the REVPAR for the Strip includes all of the company’s hotels. Everything from the top-tier Bellagio to the Circus Circus at the other end of the spectrum.
Three of the MGM’s higher end hotels performed better than average on a YOY REVPAR growth basis. Bellagio’s REVPAR fell just 1.5% compared to last year, from $260 in 2017 to $256 in 2018. The REVPAR for both the MGM Grand and Aria fell just 1.7%. The Grand’s REVPAR came in at $170 this year and Aria’s was $228.
On the other hand, several hotels had dramatic drops in REVPAR. Circus Circus was the worst, with a 12.0% YOY drop to $73. Excalibur was not as bad, but still disappointing. The medieval themed hotel saw its REVPAR for the quarter at $92, a 7.1% decline. Finally, the New York New York, which had the biggest decline in ADR for the quarter, saw a 6.3% decline in REVPAR with $135 in 2018 versus $144 in 2017.
As promised, here are the tables with Q3 2018 REVPAR for MGM’s Vegas hotels as well as the year-over-year growth rates.
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