MGM Resorts to sell Mirage Casino in Las Vegas
LAS VEGAS, Nevada: MGM Resorts has announced plans to transfer operations of its Las Vegas resort, the three-decade-old Mirage Resort and Casino, to another group in an anticipated sale.
On a quarterly earnings conference call, MGM made the sale announcement on Nov. 3, while advising analyst groups of its intention to stop paying money into Mirage, well known for its volcano. flame emitter. Details were not disclosed on buyers or pricing for the resort.
CEO Bill Hornbuckle confirmed on the call that MGM is in the first phase of the sales process.
“This will allow us to maintain our existing exposure in Las Vegas, while focusing on the complementary and diverse nature of our offerings in our hometown,” noted Hornbuckle.
“There are 77 acres, much of which is really underdeveloped in the context of what could be there,” he added, relating to the extent to which Mirage could potentially develop after being acquired. by a new company.
“When we look at the allocation of capital and the notion of diversification, we have had enough of Las Vegas,” he noted.
MGM has an impressive real estate portfolio spanning a dozen properties on the Strip, including MGM Grand, Aria, Mandalay Bay and the Bellagio.
Developed by Steve Wynn, the Mirage began operating in 1989. MGM bought the casino over ten years later.
In 2019, MGM agreed to sell the Circus Circus complex for $ 825 million and entered into a partnership with the Blackstone Group to complete the $ 4.25 billion purchase of Bellagio from MGM Resorts.
Officials said MGM is channeling the capital from the sale for a multibillion-dollar investment in an Osaka-based casino in Japan.
Additionally, plans call for MGM to expand its sports betting business. However, it will maintain its strong presence on the Strip, as evidenced by its September announcement of a $ 1.6 billion purchase from Cosmopolitan Casino.