MGM Resorts International, operator of the Bellagio and MGM Grand, will for now not be building any more hotel-casinos on the Vegas Strip, according to the Review-Journal.
Quoted by the Review Journal, Jim Murren, chairman and CEO of MGM Resorts, said he does not see the value or need in building a new property.
“I don’t see the value proposition, the need and the business case that could be made,” he said.
“It’s not my expectation during my career here that we will build another casino resort in Las Vegas,” said Murren, who became CEO in 2008.
The company remains active in pursuing non-gaming activities on the Strip such as new restaurants, retail outlets and other entertainment attractions. The company’s non-gaming centerpiece is a $350 million, 20,000-seat sports and entertainment arena in partnership with arena developer AEG.
Murren said the company is targeting customers who are increasingly visiting for entertainment outside of gaming.
“We’re developing the type of environments that will make our buildings more popular and profitable,” Murren said during an interview at Bellagio.
“Everything we’re doing is geared not toward the expansion of the room count or the casino floor, but the expansion of entertainment and visitation to Las Vegas. We believe that we will get the lion’s share of that benefit.”