MGM Resorts to sell Mirage casino in Las Vegas
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Robert Besser
8th November 2021, 02:21 GMT+11
LAS VEGAS, Nevada: MGM Resorts has announced plans to hand over the operations of its Las Vegas reosrt, the three-decade-old Mirage resort and casino, to another group as part of an expected sale.
During a quarterly earnings conference call, MGM made the announcement about the sale on November 3, while notifying analyst groups of its intent to no longer funnel cash into Mirage, which is well known for its flame-emitting volcano. Details were not divulged on the buying parties or pricing for the resort.
Chief Executive Officer Bill Hornbuckle confirmed during the call that MGM is in the early phase of the sales process.
"Doing so will allow us to maintain our existing Las Vegas exposure, while focusing on the complementary and diverse nature of our offerings in our hometown," Hornbuckle noted.
"There's 77 acres, much of it's really undeveloped in the context of what could be there," he added, in connection with the extent to which Mirage could potentially grow after being taken over by a new company.
"As we look at capital allocation and we look at the notion of diversification, we have enough of Las Vegas," he remarked.
MGM has an impressive property portfolio spanning a dozen properties on the Strip, which include 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 Circus Circus resort for $825 million and entered a partnership with the Blackstone group for completing the US$4.25-billion purchase of Bellagio from MGM Resorts.
Officials said that MGM is channeling the capital from the sale for a multibillion-dollar investment in an Osaka-based casino in Japan.
Moreover, plans call for MGM to expand its sports betting business. However, it will maintain its strong presence on the Strip, as was reflected in its September announcement of a $1.6 billion purchase of the Cosmopolitan casino.
