‘Vegas is fine’: Major Strip operator predicts strong fourth quarter
A slower summer in Las Vegas, marked by declining September visitation and muted gaming revenue, is prompting casinos to adjust their strategies, but top Strip executives remain cautiously optimistic about a rebound in the fourth quarter and into 2026.
A day after Caesars Entertainment published less-than-ideal third-quarter returns, MGM Resorts International reported mixed results, with Las Vegas operations showing softer summer performance and executives touting a recovery ahead.
“As we look to the fourth quarter, we see signs of stabilization as the luxury market segment continues exhibiting strength, groups and conventions are returning, all MGM Grand guest rooms will be upgraded and back online, and F1 (Las Vegas Grand Prix) ticketing pre-sales, particularly for the Bellagio Fountain Club, are pacing higher versus the prior year, all of which puts us on a solid footing as we approach 2026,” Bill Hornbuckle, president and chief executive officer of MGM Resorts, said Wednesday during a quarterly earnings call. “Vegas is fine. Fundamentally, we feel good about the fourth quarter (of 2025).”
MGM Resorts, which operates nine casino-hotels on the Strip, reported $2 billion in net revenue from its Las Vegas properties during the third quarter of 2025, down nearly 7 percent from $2.1 billion posted during the same three-month period last year, according to public filings with the U.S. Securities and Exchange Commission. Las Vegas casino revenue of $450 million was down 5 percent, year-over-year, while room revenue fell 11 percent from $743 million to $660 million in the quarter.
Room occupancy for the quarter was 89 percent, down from 94 percent in 2024, while the average daily room rate fell $7 to $236.
Las Vegas-based MGM Resorts reported adjusted earnings before interest, taxes, depreciation, amortization and rent costs, or EBITDAR, of $601 million in the quarter compared to $731 million in 2024, a year-over-year decrease of 18 percent.
Jonathan Halkyard, MGM Resorts’ chief financial officer and treasurer, said the year-over-year decline in Las Vegas EBITDAR was driven by $78 million from lower occupancy and room rates, $25 million from MGM Grand renovations, and $27 million from reduced insurance proceeds, with Luxor and Excalibur accounting for roughly half of the operational impact.
Nine months of declining visitation to Las Vegas
Visitor trends highlight the uneven summer performance on the Strip.
September brought another month of declining visitation, with the Las Vegas Convention and Visitors Authority reporting an 8.8 percent drop from the same month last year.
Gaming revenue for the city also lagged, as casino win on the Strip and downtown Las Vegas was down 5.5 percent and 2 percent, respectively.
Hotel room upgrades on the Strip
MGM Resorts executives said the $300 million room remodel project at MGM Grand, which removed multiple floors at a time to upgrade bathrooms and plumbing, is now complete.
Aria’s room remodel is scheduled to begin in November 2026, with the bulk of construction set for the summer of 2027 to avoid key convention periods. The Cosmopolitan’s room upgrades are planned to follow Aria’s, signaling a multi-year investment in maintaining competitive product on the Strip.
“Over time, (because) the actual product itself is spectacular, as word spreads about these upgraded rooms (at MGM Grand), we expect to see both occupancy and average daily rates rise,” Hornbuckle said Wednesday.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
