Home » VT News » MGM Drops Resort Fee Bomb : Everyone Is Getting Them Including Bellagio!

MGM Drops Resort Fee Bomb : Everyone Is Getting Them Including Bellagio!

By Chuckmonster on Wednesday, 3rd November 2010 2:44pm
  » filed under Las Vegas  comments: 19


Well, leave it up to MGM Resorts International boss Jim Murren to break the news that all MGM properties that haven't yet instituted resort fees will be doing so by the time 2011 clocks in, including Bellagio.

But why oh why? To generate more shareholder revenue? Of course not! They added those rates to pay for the three man security / bodyguard detail that escorts Mr. Jim Murren from Steve Wynn's old office at Bellagio to his Ferrari and back. Seriously! He's got three bodyguards to escort him around their formerly flagship resort! At least he carries his own backpack. I'm compelled to say that having a security detail sends a lousy impression to the guests, but I don't think anyone would recognize Jim Murren if he came up to them and picked their pocket.

The only time I've ever seen Steve Wynn with security detail was on opening night of Encore, it was their job to clear a path through a crushing crowd so The Steve could safely get outta there. And this makes sense... Mr. Wynn's peripheral vision has deteriorated due to advanced retinitis pigmentosa. Unless you count walking around arm in arm with his beloved wife/ex-wife/wife/ex-wife Elaine or his current squeeze Andrea Hissom.

So... Bellagio is getting a resort fee and so are all the other MGM properties that don't. By the turn of the new year, Mandalay Bay, Exaclibur, Luxor, MGM Grand, Signature, Skylofts, NYNY, Monte Carlo, Aria, Bellagio, Vdara and Circus Circus will all have resort fees. Happy 2011!

Tagged: resort fee   bellagio   murren   steve wynn   


Comments & Discussion:

Screw 'em. There are plenty of other places to stay.

I had always considered harrahs as the evil empire. I do believe that MGM has official surpassed them. I hit double digits when I count all the things MGM has done to deteriorate the properties.
On a side note...has anyone ever SEEN Mr. Murren at CC? You know, since he built it because he and his wife missed the big city feel.

I\'m not surprised. I did the math and just on Aria, it will generate $32 million a year. So I\'m sure they cant pass it up. Honestly, they might as well, everyone else except HET does it. Level the field. Does Venlazzo? Will Cosmo have a resort fee?

Brian, your numbers assume 100% occupancy and don't account for the sales tax give back. At 80% the take is $21,900,000 (after taxes)

Resort fees vs lousy gaming rules??? I'll pay a resort fee.

Resort fee at Mirage vs no resort fee at Paris???? I'll take Mirage

Resort fee at Wynn or Bellagio vs no resort fee at Caesar's??? I'll take Wynn or Bellagio

To me it still boils down to value for dollar and unfortunately I don't see that at Harrah's properties.

Just my $0.02

To me it still boils down to value for dollar and unfortunately I don't see that at Harrah's properties.

Especially when Harrah's charges as much as they do for WiFi, which is rolled into the resort fee at the majority of properties that have resort fees.

^^Any analysis of what resort fees will add to the bottom line should also include whether the resort fee will deter guests, or whether the regular room rate will have to be lowered.

You can say that by increasing REVPAR by x, we can increase total revenues by y, but I think there are a lot of variables in there. It's not guaranteed cash flow, by any means.

We also need to take into account the loss of other revenue streams, like people paying for the gym or Internet, or gambling less because they fell they're getting pinched.

@BrianFey Venetian and Palazzo have a resort fee...can't remember the exact amount, but it's either $17 or $18/night.

Will the resort fees really generate additional revenue or is this just a shell game? If you are making a reservation decision based on price aren’t you going to factor in the amount of the resort fees? It seems to me that resort fees will just eat into room rates.

For example, if you book a room at the Mandalay Bay on the resort’s website, it will provide you total room charges, taxes and the grand total. On the reservation page it states in bold font: “A daily resort fee of $16.80 (includes applicable tax) is added to all room reservations upon check-in.”

This is a pain in the ass because have to multiple $16.80 by the number of nights you are staying and then add this amount to the tax-included total cost for the rooms. But it seems pretty transparent that you need to factor in the resort fee at MGM properties when comparing prices at other resorts.

I hate resort fees. But the fact of the matter is they are here to stay. At least for the foreseeable future. If you get wireless, free bottles of water in room, and newspaper rolled into the fee that takes a little bit of the sting away, only a little bit.

Is Mandarin Oriental included as an MGM hotel? If their resort fee covered wifi and parking that might actually be worth it, and if it included Gym access it would be a steal........

I use in room internet, gym, and spa. Sometimes I have to use the phone because my cell has no signal. As long as they, or at least two of them, are included in the resort fee, I see no problem in paying that. The only bad thing is that most of the time the spa access is not included. At Wynn, they now charge $60 (ouch...) for the spa access and they discontinued the three-day pass. Hope this doesn't happen at Bellagio.

Hasn't Cosmo already announced that they'll base comps on all dollars spent (not just wagered)? The guy running the Cosmo sounds aggressive, maybe they'll fire off the "no resort fees" shot next.

If anyone should have a bodyguard it's Steve Wynn. I don't think anyone's kidnapped Murren's daughter and tried to buy a Ferrari with the cash.

As far as the resort fees are concerned, we all need to stop being surprised by this. It's a quick way to hit every room for another $20 a day and still advertise a lower rate than a competitor. Hotels want to raise room rates, but we are a culture that now books rooms based on a spreadsheet of rates shown to the consumer.

These resort fees are the same thinking as bag fees. They can advertise $500 but stick you with $100 in bag fees. Here's a prediction for the future, resort fees will not stop. Instead, they will find more ways to continue to advertise a specific rate and charge more on property.

This is why deregulation is bad. Two companies owning everything. A microcosm of what's wrong with America and Las Vegas. It limits competition and that's what drives bargains, quality, and innovation. By the way I have run in to Steve Wynn on two occasions at his property and , he has been alone and very accommodating and nice. He even posed with us for pictures.


Harrah's and MGM Mirage aren't the only two companies with properties on the Vegas Strip. You forgot Las Vegas Sands and Wynn Resorts. Additionally, Phil Ruffin runs TI.

Also, there's off-strip companies like Boyd and Station.

There is plenty of competition in Las Vegas.

As for your statement about "deregulation," gambling is one of the most heavily regulated industries out there and has by no means been 'deregulated.' Additionally, more often than not deregulation tends to increase rather than decrease competition. The deregulation of airlines during the Carter administration is a good example. Also, regulations tend (on balance) to be bad for competition since they disproportionately affect smaller firms. And of course, you have to take into account the possibility of regulatory capture.

Also, you seem to think that America went through a giant period of unregulated markets during the Bush 2 administration. This is incorrect; Bush 2 added many new pages to the Federal Register, increased the regulatory budget significantly, and passed numerous regulations for the financial industry pre-GFC (not to mention created the government-sponsored entities Fannie Mae and Freddie Mac).

This is off topic, but if you want to reply, please send me a private message or something along those lines.

Chuck, Yes I did figure it off 100%. And I know they will have to back out the tax. But my point was its a HUGE amount of money, either way. And based on how much MGM has struggled, I'm they won't pass up on an easy way to generate revenue. Lets say it comes out to $20 million per property, and they 10 properties on the Strip, they could make $200 million in a round number next year, in just resort fees alone. Granted some hotels have more rooms than Aria, and others have less, but you get my drift. Its huge, much more money than they could ignore.

Hey DonnyMac, does yer $0.02 have a resort fee? Cause I'll pay it just to hang out with you

Only took 8 days for LVA to catch up to this news - Way to go Chuck!

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