Originally Posted by
hoangtri1
For the last 5 years, MGM averaged $5.174 billion annually from gambling revenue. In that same period, it averaged $2.022 billion from hotel stays. MGM is primarily and will always be primarily focused on its gaming revenue. For this reason, they will always continue to comp resort fees for their key focus customers (gamblers). I don't think MGM cares if a ton of Bonvoy Platinums get status matched to MGM Gold and get waived resort fees. They could easily just raise hotel room rates (if you check now, the prices fluctuate literally all the time). Their focus will still be gamblers who get all hotel rooms comped anyway. If more Bonvoy elite members come to MGM properties, it's a win for MGM because they will likely generate more revenue from gaming, food/dining, etc and these people are mostly PAYING for their hotel stays. The partnership will only help their bottom line, even if they waive resort fees for Bonvoy members.
That's not the entire picture. Over the last few years, Entertainment, Food and beverage have started making more net revenue than casinos in Las Vegas.
For example, in Fiscal Year 2021, Net revenue for MGM casinos was $1,549,419,000. Rooms was $1,402,712,000. Food and Beverage was $1,015,366,000. Entertainment, retail and other was $769,688,000.
In Fiscal Year 2022, net revenue for MGM casinos was $2,104,096,000. Rooms was $2,729,715,000. Food and Beverage was $2,125,738,000. Entertainment, retail and other was $1,438,823,000.
For Fiscal Year 2023 Quarter 1, net revenue (revenue - direct expenses)
Casino: $891,538,000
Rooms: $608,374,000
Food and Beverage: $210,539,000
Entertainment/retail: $166,050,000
This time last year, gross revenue was $2,854,309,000.00. This year its $3,873,296,000.00.
We saw similar trends in 2019 where food and beverage alone was larger than casino revenue.
Sources:
2022 Annual Report -
https://s22.q4cdn.com/513010314/file...ual-Report.pdf
2021 Annual Report -
https://s22.q4cdn.com/513010314/file...ual-Report.pdf
Q1 2023 Earnings Release -
https://s22.q4cdn.com/513010314/file...ease-Final.pdf