https://travelzork.com/mgm-resorts-e...ays-26apr2018/

Pretty good / interesting overview of MGM's latest earnings call where their Las Vegas numbers showed continued weakness and they've already admitted that the Monte Carlo / Park MGM conversion has been a giant failure from the get go. They even went as far to admit they'll never do another hotel remodel / conversion again. I mean, who knew that doing construction on a live hotel would irritate customers and doing construction on the main entrance would mean less people would walk into your casino. Shocking.

Average daily rate for Q1 was 150 bucks a night, down from 157 in the previous year.

Other interesting point, Bellagio had their best quarter *ever* which is pretty impressive given how much gaming revenue has dropped off since 2007 in the US. High end customers DGAF about resort fees and parking rates.

I’ve been to Bellagio twice in the quarter, and have three more trips planned this year. All comped on the room, plus resort fees but food credit to offset.

It’s a smart tactic. We spent a fortune last weekend. My next trip, for wsop, May be the only affordable one.

I do think Park Mgm will do well long term. Eataly is amazing in Chicago. The restaurants are good. Location on the park is solid. The reboot process, admittedly, was an unmitigated disaster.


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The problem is what MGM did is dumb. CET showed you can make it work at the IP. MGM picked a **** concept and the way they rolled it out is rough. Opening a high end steak place in that half open casino? Lunacy. Making the thing half Monte Carlo/half Park MGM? Silly and leaving loads of people with bad experiences.

I also think the rebranding looks awful, but that's just me. I don't get the appeal of the brand at all.

I think it’s funny that they went with the name Park MGM. Because of MGM people pay to park. So why not remind the customers they pay to park?

The name reminds me of that a lot more than it reminds me of the park that is in between that place and the NYNY.

Don't assume they can't screw up Eataly as well, because the one here in Los Angeles is marginal at best when compared to NYC. (Haven't been to the Chicago one)

I think one of the interesting points is that the lower price point of Monte Carlo was a sweet spot for price conscious visitors who don't want to spend a ton on a room w/o contracting some virus. (See Excalibur)

I'm a little surprised they didn't go with a retro / vintage Vegas style but that's just me. I guess there's downtown for that.

Right, but it was never a must-visit destination. People only stayed there if they couldn't get somewhat cheap room elsewhere. I've only stayed there once, and that was because it was the designated hotel for a group gathering. The rooms were very plain.

Not sure if IP is a good example, that “The Quad” thing burned a couple millions.

I'd be surprised if nobody expected revenue to drop. But the alternative was to shut down the hotel altogether, which would have brought in 0 revenue for a shorter period of time.

It was probably a cost-benefit analysis based on construction timeline estimates. If construction promised they could work efficiently in a live hotel, the math may have worked out to (lower revenue)x(longer time) > (zero revenue)x(shorter time) + (full revenue)x(remainder of time).

Remember that MGM got burned on CityCenter where a financial crisis nearly caused a construction disaster, so they may have thought, "well this way there's at least some revenue even if construction gets halted."

Was Monte Carlo also charging resort fees during construction? If so, who would want to pay resort fees in a contruction hotel and have to go to other hotels for the resort ammenities?

MGM Grand has successfully branded "garden" stealing directly from Madison Square "garden". This worked well because Vegas was and has totally stolen boxing from New York. The MGM Grand Garden Arena is now the home of boxing and the UFC.

I guess MGM also wants to brand "park" in addition to "garden", also stealing from New York's Central "park". MGM park is right next to New York New York, after all.

Someone at MGM definitely has a fascination with New York.

The logic is obvious, and I predict that Times "Square", "Chelsea", "Soho", "Harlem", and other keywords might be in MGM's Las Vegas future branding. "Eataly" is already going after "Little Italy."

You heard it here first.

Oh, I also just bought a skateboard. The MGM Park area is cool for skateboards. Currently, I'm still using my bike to get there. Once I regain my skateboard skills I'll use it to go there. No need for bike racks. I park the van at super free Planet Hollywood. The bike racks are at the movie theater parking lot right behind the Hard Rock cafe.

Very strong wifi at the park, that area outside Shake Shack. If you see someone with a skateboard there and doing work on his laptop, say "Hi".

p.s. I think that it was a good idea to not close the Monte Carlo during the transition. I hope that they reopen the cardroom.

'Eataly' is an international chain of Italian themed food-market/restaurants, which first opened in Turin, Italy, eleven years ago.

Today there are Italys in Rome, Tokyo, and Munich, and several on cruise ships. Also in Boston, Chicago, and Los Angeles, and yes, there is one in NYC, in the Flatiron District.

But there are definitively no 'Little Italy' connotations in play here.

The UFC hasn’t hosted an event there since the TUF 23 Finale almost two years ago.

Eataly was founded in Italy by a guy who previously owned a consumer electronics chain that he sold for ~$400mil. So I think the name might have to do with eating and Italy. FWIW, I think he bought that name from an American who had the rights to it.

LOL, of course they were charging a resort fee. They even raised it during the ongoing work.

I spent some time at Park MGM while staying next door at Aria April 4-8. I was a fan of Monte Carlo and always liked gambling there. Their poker room was also fun for some boozy low stakes games and the staff were fantastic, kind people. I also liked Sambalatte and 800 Degrees, which I will miss.

A few thoughts:

- The Money Line, their new sports book and bar is outstanding. Great bartenders, free full size billiards table, mini bowling, great screens, and a quick food counter (that I didn't try).

- Primrose restaurant is a winner. The food isn't quite Bouchon level but it's solid. The cocktail program is run by the former Herbs and Rye bar manager. I was a little underwhelmed at one cocktail that came in an unnecessary box filled with smoke, but overall they have a fun list.

- They didn't change much about the casino floor which I think is a positive as I liked it just fine before.

- I went up to a room my friend was staying in and I think they did a good job on that upgrade. The rooms are physically small since that was common back when Monte Carlo was built, and they're obviously handcuffed there since they didn't demo the building like I wish they had. But they handled it ok removing bulky furniture like the old TV cabinets, desk, etc and adding a day bed in the window frame. I'd stay here now, while I was done with Monte Carlo before.

- Pool was completely redone and they did a decent job with it. It's like a cheaper version of the Bellagio pool you can see from the inside hallway.

The organizers were thinking of "Little Italy". The pre-existence of "Eataly" made the decision and implementation much easier as a successful template was already present for a blatantly implied "Little Italy" in addition to Garden and Park.

Exactly.

They have been wiping "Garden" on to the T-Mobile Arena.

I'm not totally sure you understand what 'exactly' means or what 'Eataly' is.

LOL-DC got booted from his favorite pastime trolling the vlog thread-he needs entertainment.......

Buried in that linked article is the mention that MGM is not focusing at all on mid or lower tier customers. Not a surprise. And yet, Park/Monte Carlo is never going to be more than a mid-tier or mid-plus resort, I don't care what they do to it.

OK this was a good post to kind of temper my disdain for the remodel. I liked the MC before as it was. I don't like the Park MGM brand or name...I think its boring and soul less. I would much prefer something with character. However, if there is good eats, nice new rooms, nice sports book, nice pool...I can get over it.

Also I hate the look of the new chips...

That was a quick rebrand, but the Linq is doing great overall.

Cosmo already has a Chelsea tower so I don't think they'll be going that direction.

Some of the top execs must be New Yorkers.

As a midwesterner, I hear enough about LA & NY. Having NYNY casino in Vegas is already too much for me.

I think LVLers should pool their money together to build a Lake Okoboji themed casino that caters to small stakes gamblers and is within walking distance of the airport, and see how well it does.

We need "Joe's Kansas City BBQ" tower