The competition between Las Vegas Strip casino operators often seems like an endless game of "Can You Top This?"
If Caesars Entertainment (CZR) -) remodels the former Bally's, turning it into the gambler-friendly Horseshoe, MGM Resorts International (MGM) -) responds by remodeling Bellagio and New York, New York.
In reality, the complexity of these resort casinos means that Caesars and MGM probably aren't actually countering each other's moves. Each is certainly aware of what the other is doing, but the tens, sometimes hundreds, of millions involved in remodeling a property likely means that most changes are planned well in advance.
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MGM, led by CEO Bill Hornbuckle, has been very busy over the past few years. The company sold the Mirage and acquired the Cosmopolitan while also revamping multiple properties.
The CEO, who also serves as chairman of the Department of Commerce's Travel and Tourism Advisory Board, recently sat down with Travel Weekly to discuss his company's Las Vegas Strip development plans.
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MGM Works on Plans for the Cosmopolitan
When MGM took over the Cosmopolitan, the company basically traded Mirage for the resort. That's not literal, as Hard Rock International bought Mirage, but MGM made a strategic decision to sell Mirage to free up the cash to buy Cosmopolitan.
MGM has been working to integrate the Cosmopolitan into its portfolio, booking platform and loyalty program. It has also been making some tweaks to the property.
"We're reorganizing a couple of restaurants, and we're still looking for something permanent to put in the theater, something meaningful that will kind of fit the rest of our portfolio and be wildly accretive for us," Hornbuckle told Travel Weekly.
He noted that the "swap" was an economic positive for the company, but that was not the only benefit of the deal.
"It provided access to a market segment we didn't necessarily have, which is that thirty-something millennial excited to come to Las Vegas and have fun, but gaming isn't necessarily their primary focus," he said. "And if the [MLB Oakland Athletics] land next door, I think you'll see some further enhancements to that district, which is great."
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MGM Plans a Major Strip Renovation
One of the things you see with all major Las Vegas Strip resort casino operators is that renovation is a near-constant cycle. Once a property gets fully updated, the clock starts ticking for its next renovation.
MGM has been busy with the renovation at New York, New York, as well as updates to the Spa Tower and suites at Bellagio, but Hornbuckle also discussed plans for its next major Las Vegas Strip project.
"I think the next big push will be into the MGM itself. It's our marquee brand, it's 30 years old. It's time to do a major facelift," he shared.
Hornbuckle discussed details on the remaining Bellagio renovations (but did not mention the MGM plans) during his company's first-quarter=earnings call.
"At Bellagio, we are completing a three-year remodel of all rooms and suites with our spa tower. This is in addition to enhancing our high-end gaming offering with a newly remodeled club for high-end table games customers, and our baccarat lounge just reopened after a full renovation," he said.
"We have begun construction of a pedestrian bridge to connect the Cosmopolitan Las Vegas with Bellagio and Vdara."
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