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MGM Mirage Round Up: New Name, New Players Club, New Rooms at MGM

By Chuckmonster on Tuesday, 20th April 2010 5:43pm
  » filed under MGM Mirage  comments: 12

   

This morning, MGM Mirage filed paperwork with its shareholders requesting to change the company's name to MGM Resorts International, or via acronym MRI.

The name change is intended to change perceptions from MGM Mirage being primarily a casino operator in Las Vegas to include the burgeoning non-gaming ventures they have been adding to its project pipeline.

In addition to changing the name on corporate masthead, this will require all new branding, logos, signage, updated brochures for everything, new stationary, new websites and new business cards.

Players Club

Another reason cited for the name change is the pending rebranding, renaming, repositioning of the Players Club. The new players club will be completely revamped and include tiered cards, improved access to comps via resort level kiosks, web access and apps. Additionally, MGM has partnered with a firm to help them institute Harrah's style database analytics that would better tailor comps and promotions based on your historical usage patterns.

MGM Grand Room Renovations

Also hid inside a recent MGM Mirage investor presentation was the news that MGM Grand is scheduled to undergo a $100M room renovation starting in 2010. More details to come (hopefully).

The same presentation did reveal an interesting statistic, if the average daily rate increases by $5, the annual impact on MGM Mirage's earnings is $54 million dollars. From this, we can deduce that a $10 resort fee, spread across all of MGM Mirage's 35,000 hotel rooms will add at least $100,000,000 to their bottom line over the course of the year. Certainly not chump change.








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Comments & Discussion:

Would it make a difference to anyone if they added a resort fee, and instead of giving you the regular lame BS that gets included (bottle of water, fitness center, parking etc.) They just came right out and said \"Renovation Fee\" and handed you a brochure of renovations, and then didn't price them out of most peoples range?

I know in a previous employment field there was a fee added that was dubbed \"facility fee\" and it was for the construction of a new facility, and people rarely bitched about that once they saw actual work being done and a structure to say "Oh thats where my five bucks is going.\"

in other words $11MM revenue (gross, right?) per $1 ADR increase.

i guess theyre hoping MGM grand renovation will be big part of that.

what the heck are they going to do about no revenue and high D&A at circus circus?

Sure, in the fevered bean-counter brain, that resort fee adds up to big, big bucks for MRI even if it does piss off their customers. So does 6/5 blackjack. So do tighter slots, crappier video poker pay tables, fewer cocktail waitresses on the floor, crummier buffet offerings, and on and on.

Vegas used to be special. Better games, better odds, better comps, better hotel rates, better dining deals, better service, better everything. Now Harrah's and MGM Mirage seem to be trying to homogenize the product across the country, so that the same truly awful crap you have to put up with in Atlantic City you'll now have to endure in Las Vegas too.

Pretty soon they'll be serving comp beers in 7-oz dixie cups, too, in your choice of flat lite or flat regular. Then I'll really have to question why I'm flying out there from NY.









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Those MGM rooms are in some real need up updating, although I am really surprised they are going to do anything to MGM Grand... I kind of felt like they were just letting it slide to the lower scale. I was expecting them to revamp Bellagio before MGM to be honest, they need to maintain that brand recognition and loyalty there. It’s only a matter of time that people realize the place isn’t looking as good as it used to and stop paying premium rates.

Why do I get the feeling they are dropping the "Mirage" part of their name in advance to make it easier to drop the real Mirage from their property inventory in the coming months? How many rumoured buyers did they have lined up looking at that hotel after TI sold to Ruffin last year?

In the press release they claimed that was not the motivation and they have no plans to sell Mirage. However I wouldnt be surprised if they did and frankly wouldnt mind it, I like the Mirage and I would like it much better if someone else ran it.

Not to be argumentative. But I get tired of hearing people bitch so much about Vegas and especially hotels. Where else can you find multiple $5 billion+ resorts? Where else can you stay at one of those resorts for $150 or less per night? How much would an Encore-class room cost in New York? In Dubai? Where else can you have your pick of the best restaurants and nightclubs in the world, all within walking distance? Where else can you shop at the variety of high end and unusual stores with a drink in your hand? Even if there are some tourist-trap aspects like expanding 6-5 blackjack, you'll still find me at Bellagio's 24-hour, $5, 3-2 table. Vegas is still special.

people bitch about the hotels because we keep getting the shaft in the name of corporate revenue, but it's not an obvious shaft. If they raised the rate of the room $10 per night, then it's easy to say that they are trying to make more money. when they advertise one rate, then hit you with a shitload of hidden fees and resort fees, some of which you don't know about until you go to check out, it sucks. i think the majority of people here just want the rate of $X/night to end up being $X/night when they check out, not $(X+Y+Z+AA)/night.

as for the bellagio's $5 3:2 table, how long will that last if they switch all the tables to 6:5? or raise it to $10 or $25 min? or they have just the one table, and it takes 2 hours for a seat to open up for you? yes, you can go to any other casino and probably find the mins/odds you want, but it will be harder and harder to find it on the strip if they keep tightening the screws on the customer.

here's the progression:
they charge more, give you worse odds.
they make more money for a limited time.
people (okay, smarter people) pack up and go someplace else to get a better deal.
hotel revenue goes down.
they figure out something else to cut/tax/charge you for.
repeat.

people remember when you used to get freebies for your play - not a reduced room rate 6 months from now, but actual freebies on your current trip. good luck trying to get that from a strip hotel for under $25/hand for 4-5 hours a day, every day you stay there. they may throw you a buffet, but for the most part it's almost always comps that come in the mail trying to get you to come back out.

that is why we bitch. bring back the mob - at least they knew how to treat people.

and yes, that statement goes both ways.

I agree 100%, Trump here in Chicago charges minimum $300 a night and in some cases closer to $500. Thats one of the reasons I frequent Vegas so much, its a bargain when it comes to rooms, especially higher end ones. That said I think people bitch about some hotels in vegas is because the bar is raised so high with the top of then end hotels being priced so low. If i can pay 50 a night to stay at Encore over MGM its worth it, MGM may have OK rooms for that price in another city but not in Vegas.

MGM claims that they won't sell The Mirage. Of course, Cirque told Steve Friess that they were not working on a Michael Jackson show.

If CityCenter under-performs of they hit a financial bump in the road somewhere, dumping The Mirage makes plenty of sense. One wonders if Wynn would like to get his hands back on it.

MRI? The corporation is going be renamed after a medical test? Surely a better name could have been chosen? That aside I dont have a problem with the move and will bet the Mirage is sold before the end of the year.

Okay, so I'm a crotchety old man who remembers Vegas in the 80s and 90s and misses it.

A night with Metal Elvis will make everything better.




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