Chart & Bullets: While MGM has successfully set the Street’s focus on Q1 RevPAR, our favorite metric is taking a turn for the worse.
- We liked MGM for most of this year – one of the reasons was the upturn in Strip slot volume
- The MGM story has centered around RevPAR gains, particularly in Q1 2014 as a few big conventions cycle through. However, we still view slot volume as the most important metric and volume is likely moving lower through the end of the year.
- The Q1 focus sets up the MGM story for disappointment as investors lose sight of the slot (and earnings?) issue going forward.