MGM Resorts International‘s partnership with U.S. hotel brand Marriott International is already proving fruitful and is anticipated to fuel company growth throughout the year, executives revealed on Wednesday.
Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International, disclosed during the company’s first-quarter earnings call that the licensing collaboration with Marriott International, launched this winter, has already garnered over 130,000 room nights booked.
Hornbuckle noted that bookings through the partnership surpassed expectations by approximately 75%, particularly benefiting group business, Las Vegas Review-Journal reported.
The partnership, MGM Collection with Marriott Bonvoy, initially announced in July 2023, faced a delayed launch until 2024, attributed by both companies to the confirmation of details. However, speculation arose from hotel analysts suggesting that a cyberattack on MGM in September, spanning nine days, contributed to the postponement.
Hornbuckle expressed confidence that the partnership would contribute positively to the company’s financial performance for the year.
For the quarter ending March 31, MGM reported a net income of $217 million, or 67 cents per share, on revenue of $4.4 billion. In the corresponding period last year, it reported a net income of $467 million, or $1.24 per share, on $3.9 billion in revenue. The decline in net income was attributed to the sale of regional property Gold Strike in Tunica, Mississippi, in February 2023.
Executives highlighted the success of the company’s luxury portfolio on the Strip during the quarter. The Las Vegas segment reported net revenue of $2.3 billion, marking a 4% year-over-year increase. The growth was credited to rising daily room rates, which increased by 7% to an average of $277, with a quarter occupancy of 93%.
Hornbuckle hinted at forthcoming capital projects on the Strip aimed at enhancing connectivity between Bellagio, Cosmopolitan, and Aria—central to the company’s luxury offerings—though specifics were withheld. MGM had previously acquired a 1.6-acre parcel between the Cosmopolitan and the Bellagio in May last year.