It’s easy to think that MGM Resorts is playing a financially tricky game.
The company recovered from a massive cyberattack that resulted in $100 million in losses, only to face a potential employee strike just days before the biggest event to hit Sin City in decades: the Formula 1 Grand Prix of Las Vegas.
But if anyone is sweating at MGM Resorts, it wasn’t clear during a third-quarter investor call this week.
“As a result of the issues, we have seen incredible resilience in our business to start the fourth quarter,” MGM Resorts CEO William Hornbuckle said on a call with investor analysts. “We will come out of this stronger as a team and as a culture with a focus on the yes culture of both our guests and employees.”
Hornbuckle detailed the efforts the company went to to protect its business during a recent cyberattack and data breach. The company modified certain systems to “mitigate risk to customer information” and then gradually restored those systems over the course of several weeks. MGM Resorts finally returned to full operations in late September, Hornbuckle said.
While that $100 million loss made headlines, the CEO of MGM Resorts noted that insurance will cover the losses incurred. But that’s not the only operational headache MGM Resorts is experiencing these days.
The Culinary and Bartenders Union, which represents 35,000 hospitality workers in Las Vegas, threatened to strike on Friday if an agreement was not reached with major casino resort operators such as MGM Resorts, Caesars Entertainment and Wynn Resorts. Caesars closed a deal earlier this week and Hornbuckle indicated Wednesday that MGM Resorts was close to announcing its own deal.
“We are literally in session as we speak, and I believe we will reach an agreement today,” Hornbuckle said. “By listening to our employees, we know that they are looking for, among other things, a pay increase to combat inflation and a lower workload. When this deal is announced, we will do just that and result in the highest reward.” increase in the history of our negotiations with the culinary union.”
Late Thursday morning, a deal was struck for MGM Resorts’ 25,400 employees who are members of the Culinary and Bartenders Union — meaning Wynn Resorts is the only major operator in Las Vegas yet to close a deal.
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What Formula 1 means for MGM Resorts
Hornbuckle played down the feeling that Formula 1 would not become the huge event it was initially billed as for Las Vegas.
“We are well prepared to welcome our guests for what promises to be an exciting and long-lasting tentpole event,” he said.
MGM Resorts has sold out its Bellagio Fountain Club and grandstand seats directly on the track. Additionally, the CEO of MGM Resorts noted that room rates are “several multiples” higher than those in the same week in previous years. Casino cash deposits – money that customers deposit into a casino account to benefit from during their stay – point to Formula 1 being an all-time record casino event for the company.
If you still want to go to Las Vegas for Formula 1, prepare to pay a hefty sum: The average nightly rate at MGM Resorts during the event is more than $900, Hornbuckle said.
Still mum about Marriott details
Hornbuckle doubled down on what we already knew: the upcoming partnership between Marriott and MGM Resorts won’t launch until early next year.
While the casino executive expressed optimism about the deal and how it would deliver higher room rates for Marriott Bonvoy members, there are still not many details on what the full program will look like.
“We have launched the official landing page and we will soon announce the exciting loyalty benefits we plan to offer to both MGM Rewards and Marriott Bonvoy members and their 180 million numbers,” said Hornbuckle.
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