MGM may develop new Vegas Strip casino-resort
MGM Resorts CFO Jonathan Halkyard has said the operator is interested in opening another property on the Strip.
US.- MGM Resorts International is considering adding a second resort-casino to the south end of the Las Vegas Strip after its acquisition of The Cosmopolitan announced in September. Speaking at Morgan Stanley’s Virtual Global Consumer & Retail Conference, chief financial officer Jonathan Halkyard said the “energy of the strip” had been moving to the south thanks to The Cosmopolitan, the T-Mobile Arena and Allegiant Stadium.
He said: “That’s our neighborhood down toward New York-New York, Excalibur, Mandalay Bay and Luxor, MGM Grand, and Park MGM. The reality is – and not many people appreciate this – that there’s a substantial opportunity for our company to do additional development in that area if that’s something we think (is a good move for shareholders).
“There’s seven acres in front of the Excalibur. That’s equal to the entire footprint of The Cosmopolitan. I’m not suggesting we’re going to build a 3,000-room tower there, but that’s a significant development opportunity potentially.”
Halkyard also noted that the MGM Grand is difficult to access for pedestrians and that there was an opportunity to improve connectivity.
He added: “Clearly, we’re allocating capital in Las Vegas in the form of the acquisition of the Cosmopolitan. We think that’s going to drive terrific returns for our shareholders and be a great benefit for our guests. In the near term, that’s the most allocation of capital we’ll be making in this market.”
