Pokerati – Having navigated MGM Resorts International through almost four years of turbulent economic waters, Jim Murren has grown used to hearing negative comments from haters and detractors.
What surprised Murren, however, were some recent vitriolic remarks directed at his company from a competing corporate office down the street.
Las Vegas Sands Corp. Chairman Sheldon Adelson used his quarterly earnings conference call to blame Caesars Entertainment Corp. and MGM Resorts for driving down hotel room rates along the Strip, thus, diminishing Adelson’s earnings in Las Vegas.
Adelson claimed the industry-leading long-term debt carried by Caesars ($23.7 billion) and MGM Resorts ($13.1 billion) affects the way they do business, such as lowered room rates to drive up occupancy.
“I don’t necessarily blame them,” Adelson said. “I suppose if I were in that position, I might do the same thing.”
In an interview following MGM Resorts’ quarterly earnings conference call last week, Murren, MGM’s chairman and CEO, said his company and Caesars have a better understanding of how Las Vegas works these days than Adelson does. Las Vegas Sands drew 86 percent of its quarterly revenue from Asia.
MGM Resorts and Caesars Entertainment together control 20 Strip-area hotel-casinos and nongaming hotels that encompass more than 64,000 rooms. Combined they have more than 77,000 employees in Las Vegas.
Las Vegas Sands has two Strip resorts with 7,000 rooms and 9,400 employees.
“We know the market here,” Murren said. “We and Caesars are the largest players. We provide the most jobs, the most tax revenues and the most community support. It’s obvious to us that the market is getting better.”
MGM Resorts said net revenue from its Strip properties grew 3.4 percent, to $1.248 billion, in the quarter that ended June 30.
For example, MGM Resorts flagship Bellagio grew revenue 2.3 percent in the quarter, MGM Grand had a 10.9 percent revenue increase and Mandalay Bay’s revenue was up 6.7 percent.
That’s overall revenue , not just casino numbers.
