MGM Resorts International (NYSE: MGM) company spokesman says they have canceled room reservations at its Las Vegas properties through May 21.
According to a Securities and Exchange Commission filing, whenever the Las Vegas Strip reopens, MGM officials expect to open their properties incrementally. MGM's filing indicated the company’s 10 casinos on the Las Vegas Strip will be opened in phases. However With reservations for Friday May 22nd and the Memorial Day weekend not being included in the cancellations notice, this may indicate that the first phase will be a soft re-opening for the holiday weekend for those who already have reservations.
Visiting the MGMResorts.com webpage, the first available date for booking is June 1st. This may indicate a second phase in re-opening of the Las Vegas Strip for new reservations.
Because of the economic fallout from the Coronavirus pandemic, MGM's stock took a downturn around February 20th and bottomed around March 18th, dropping approx $25 a share the day after Vegas was shuttered.
While the company isn’t scheduled to release its first quarter financial performance until 4/30/20, company officials predicted dire results for the first quarter of 2020. MGM is estimating its consolidated net revenue total for the quarter to be about $2.3 billion, which would be about a 29% decrease from the same period in 2019.
Officials also mentioned MGM’s solid liquidity, the company reported it has about $6 billion in cash. The domestic properties still cost about $270 million per month to maintain and have begun "aggressive cost reduction initiatives".
About 52,000 of MGM’s 80,000 world wide employees are based in Las Vegas.
MGM Properties: Bellagio, ARIA, MGM Grand, Mandalay Bay, Delano Las Vegas, Park MGM, The Mirage, New York-New York, Luxor, Excalibur.
Not knowing how long travel restrictions will last and how scared the population is to return to crowded venues, it remains unknown how fast the casinos will get back to normal. So these cost cutting measures will help ensure sustainability until it is back to business as usual.
No matter what, vacations like Casinos, Cruises and Theme Parks will likely be forever changed.
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