A slower summer in Las Vegas, punctuated by declining visitors in September and subdued gaming revenue, is causing casinos to adjust their strategies, but Strip executives remain cautiously optimistic about a rebound in the fourth quarter and into 2026.
A day after Caesars Entertainment posted less-than-ideal third-quarter earnings, MGM Resorts International reported mixed results, with its Las Vegas operations showing softer summer performance and executives calling for a recovery ahead.
“As we look to the fourth quarter, we see signs of stabilization as the luxury market segment continues to show strength, groups and conventions return, all MGM Grand guest rooms will be upgraded and back online, and F1 (Las Vegas Grand Prix) ticket sales, particularly for the Bellagio Fountain Club, are picking up year-over-year as we approach 2026,” Bill Hornbuckle, president and chief executive officer of MGM Resorts, said Wednesday during a quarterly profit call. “Vegas is good. Basically, we feel good about the fourth quarter (2025).”
MGM Resorts, which operates nine casino hotels on the Strip, reported $2 billion in net income from its Las Vegas properties in the third quarter of 2025, down nearly 7 percent from $2.1 billion in the same three-month period last year, according to public filings with the US Securities and Exchange Commission. Las Vegas casino revenue of $450 million was down 5 percent from a year earlier, while room revenue fell 11 percent from $743 million to $660 million in the quarter.
Occupancy for the quarter was 89 percent, down from 94 percent in 2024, while the average daily room rate fell $7 to $236.
Las Vegas-based MGM Resorts reported adjusted earnings before interest, taxes, depreciation, amortization and rental expenses, or EBITDAR, of $601 million in the quarter compared to $731 million in 2024, down 18 percent from a year earlier.
Jonathan Halkyard, MGM Resorts’ chief financial officer and treasurer, said the year-over-year drop in Las Vegas EBITDAR was driven by $78 million from lower occupancy and room rates, $25 million from MGM Grand renovations and $27 million from reduced insurance revenue, with Luxor and Excalibur accounting for about half of the operating impact.
Nine months of declining visits to Las Vegas
Visitor trends highlight summer’s uneven performance on The Strip.
September marked another month of declining visitation, with the Las Vegas Convention and Visitors Authority reporting an 8.8 percent drop from the same month last year.
Gaming revenue for the city also lagged, as casino profits on the Strip and downtown Las Vegas fell 5.5 percent and 2 percent, respectively.
Upgrading hotel rooms on The Strip
MGM Resorts executives said the $300 million remodeling project at the MGM Grand, which removed several floors at a time to upgrade bathrooms and plumbing, is now complete.
Aria’s room renovation is scheduled to begin in November 2026, with the bulk of construction completed by summer 2027 to avoid key convention periods. Cosmopolitan’s room upgrades are slated to follow Aria’s, signaling a multi-year investment to maintain a competitive product on The Strip.
“Over time, (because) the product itself is spectacular, as word spreads about these upgraded rooms (at the MGM Grand), we expect to see both occupancy and average daily rates go up,” Hornbuckle said Wednesday.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
