MGM: LAME FIGHT, LAME REVPAR

Takeaway: May RevPAR was disappointing in light of the Pacquiao/Mayweather fight of the century. MGM’s Q2 guidance in doubt

  • Despite record visitation, LV Strip REVPAR for May came in only at 4.2% YoY, substantially below even the most conservative estimate
  • Rock in Rio and the Mayweather/Pacquiao fight accounted for a couple of strong weekends but we’re hearing that midweek traffic was slow
  • There could have been some pressure on convention pricing as two large trade shows (American Wind Energy Association and Coverings) did not appear in May this year. Last year, they had ~32k in attendance. These two shows will not reappear in Vegas in 2015.
  • MGM had guided to AT LEAST 5%REVPAR growth for Q2 2015. It looks like the company may disappoint investors once again.

MGM: LAME FIGHT, LAME REVPAR - Las Vegas Rev PAR