MGM/Mirage: What’s in a Name?
April 22, 2010
To those of you who went out and got “MGM/Mirage” tattooed on your ass after your last successful vacation at Circus Circus, well, I hate to be the bearer of bad news:
Las Vegas casino company MGM Mirage plans to change its corporate name to MGM Resorts International, the company disclosed in a filing Tuesday.
“This name better reflects the fact that we are a family of hotels,” spokesman Alan Feldman said.
Mr. Feldman said some people misinterpreted MGM Mirage name to mean the company owned just two hotels—MGM Grand and Mirage.
The company also wanted to add “International” to the name to reflect its intention to grow its presence internationally, Mr. Feldman said.
Honestly, I’m not sure exactly what to make of this.
MGM Grand, NYNY, City Center
First of all, if people misinterpreted MGM/Mirage to have owned only two hotels before the name change … won’t they misinterpret that they only own one hotel now? I mean, the company is actually reducing the number of hotels in its corporate name.
Second, I don’t know anyone who thought that MGM/Mirage ONLY owned the MGM Grand and Mirage hotels. Well, let me rephrase that … nobody who cared about such things were under this impression. I have known quite a few oblivious tourists who, for instance, stayed at the Monte Carlo because “I won’t give the MGM Grand any more of my money after the way they treated me last trip”. These people weren’t confused so much as they were indifferent to the issue.
Third, I’m not sure how this name “better reflects” the family of hotels. Where is the love for Luxor in the new title? How about Mandalay Bay? How about NYNY? Again, the only property that is “reflected” in the title is the MGM Grand. The Mirage was the first real “mega-resort” in Las Vegas, and there is a lot of brand equity in the Mirage name. Arguably more than the MGM name. While I’m nowhere near outraged or offended by this new nomenclature, I do question its premise. Speaking of MGM/Mir … I mean MGM Resorts International (it sounds like a timeshare pancake house), last week the company filed documents showing just how well City Center is initially performing.
In the first quarter of 2010, City Center was occupied at a rate of 63 percent. During this same period, Strip-wide occupancy was 85%.
Yikes.
While shareholders don’t seem to be overly concerned about this number (the stock is trading near 52 week highs), to me, it’s concerning. These are numbers I would expect from a property like Riviera … not the biggest, newest, most hyped property in the history of Las Vegas. The anti-climax that was the City Center opening continues to send shockwaves of apathy throughout Las Vegas. This is disappointing.
Personally, I have a very long history with “MGM Resorts International”. I stayed in the Luxor on my first visit to the city, stayed in the same property when I was married, and one of my kids was born in an MGM Grand Hotel Suite. I am not kidding.
My history with MGM properties is longer and deeper (heh, I said “longer and deeper”) than arguably any other resident or visitor that I know. The company has been integral to many of my own life experiences over the past decade or so.
Now that the Strip has become a duopoly, I would not stoop so low as to proclaim any real loyalty to the company at this point, but I do have some affection towards their properties. I think the company is doing a lot of things wrong, and I mean A LOT of things wrong … but I hate MGM/Mirage with a heavy heart.
All is not bleak on the MGM front, however.
Word has come that they are now working with Cirque de Soleil on a Michael Jackson themed show in the spirit of The Beatles “Love” show.
The group promises its swingers and jumpers and how’d-they-do-that creators will kick off the show with an arena tour starting in late 2011 and will follow it up with a permanent residency in Las Vegas in 2012 at an MGM Mirage Inc.-owned property. A nightclub sharing the theme will open simultaneously.
The estate and the troupe will each own 50 percent of the project and share the production and development costs evenly.
The MGM property which will host this new show is unnamed as of yet, but I suppose it will be an interesting addition to the Beatles and Elvis tribute shows already in production. It will also add another Cirque show to The Strip, and heaven knows, we’ve been needing another one of those.
God forbid that other group of choreographers known as “anyone else” ever get a shot at producing a Strip show lest chaos and anarchy reign supreme.
Anyway, it is what it is.
MGM/Mirage is soon to be old news, and MGM Resorts International is taking over where they left off.
Meet the new boss, same as the old boss.
Written by Jason A on April 22, 2010 at 4:14 am
MGM first destroyed the tropical interior of The Mirage. They later began changing the interiors of Luxor, NYNY and Monte Carlo (opened as an European style high end casino – now you think of Diablo’s) to the same generic “modern” look. They stopped putting money into rooms and now screw customers with a $15 + nightly resort fee hidden in the fine print.
I’d like to see Wynn, Ruffin and other qualified (i.e. people willing to spend non-borrowed capital to improve properties – this includes small operators like Casino Royale) owners to pick off more properties though I fear Loveman will most likely gobble much of MGM whatever Co. after they creator from the debt service of their biggest mistake, City Center.
Written by Sandy Astroglide on April 22, 2010 at 4:46 am
The first image the new name conjures up for me is the beeyootiful Resorts International casino in the armpit that is Atlantic City. Stay Klassy.
Written by FoolsGold on April 22, 2010 at 10:43 am
Name change, eh?
What are they hiding? They want a good many newspaper stories about a name change to hide something else? They need to pay their lawyers to actually do something for a change?
After the name change will City Center occupancy rates soar? Does anyone care what the occupancy rate of a hotel is? I mean they give away about a third of their rooms anyway so whats the big deal? Is there a difference between a room that is rented for free and a room that is vacant?
Written by tully on April 22, 2010 at 11:35 am
Well, a 63% occupancy means MGM whatever is struggling to even give the rooms away. The most expensive and hyped property should still be riding the “must see, must stay at” energy, and should be full of paying guests, with comped rooms only for better players. CC can’t even seem to give it away for free. When you can’t manage that on the Strip, you got a big problem.
Meanwhile, Bellagio is doing fine Oddly, after all the “improvements” MGMetc did at other properties, they skipped room refurbishment at the B. Reports are rooms are getting a little worn, as all hotel rooms do with time. People apparently would still rather stay there, even if a bit of chair upholstery is worn, or a table finish dinged.
Like Rex said, low occupancy rates at places like Riv or Sahara wouldn’t raise eyebrows. But CC within three months of opening? Doesn’t matter how bad the economy is, that’s just awful.
Guessing Mirage will be sold within a year—buyer announced before the end of 2010.
Written by Chad on April 22, 2010 at 2:21 pm
They sold TI, maybe by taking “Mirage” out of the name that leaves the option to sell of The Mirage as well.
Written by ColinFromLasVegas on April 22, 2010 at 3:05 pm
Cirque du Soleil hierarchy are a bunch of douchebags.
This idiotic entertainment giant corporation still stands behind an incredibly horrible show at the Luxor (Criss Angel BeLIEve). This is a show that Cirque decides to let it ride and advertise it so their no talent headliner sucks people in to pay money and gives them absolutely nothing in return for entertainment value. When in actuality they should close this subpar show down and take the loss. NOT take out their poor business decision on tourists, making them pay to recoup their $100 million investment. The complaints, howls and screams from dissatisfied people who attend this show have continued ever since this TITANIC ship wreck show has started and STILL continue (if you don’t believe me, call up Yelp and other internet sites that have people reviewing this show…they are all consistent in they say this show is pretty much like fecal matter that comes out of the southbound end of a northbound horse).
My question is…. Why let these douchebags do a Michael Jackson show? They’ll fuck it up.
And Rex alluded to it…. Why do we need another Cirque du Soleil show here in Las Vegas at all?
I mean, come on…. What’s next? Cirque du Solei presents the Tiny Tim tribute show (”Tip toe…through the tulips…with me” Gimme a break…..) It looks like it won’t stop. And it will be horrible for Las Vegas if they keep producing shows that basically suck. The idea is to attract tourists to Las Vegas…not chase them the fuck away.
Written by W on April 22, 2010 at 3:58 pm
I can actually explain very clearly the reasoning for the name change. Essentially, MGM wants to be identified less as a “Vegas” company and more as an International company (i.e. Macau). Earnings from international destinatsions (Macau & Singapore) are valued at a greater multiple of EBITDA (a measure of income adjusted for certain items we like to exclude from the calculation). Thus if they pretend they are more like WYNN and LVS (both of which much LESS than 30% of their EBITDA from Las Vegas) they believe people will pay more for their stock. As it stands, MGM only gets about 8.5% of its EBITDA from Macau (70%+ from Vegas).
Furthermore, by adding the international flavor to the name, they believe they will be able to better compete with LVS, WYNN, Genting, etc in new development opportunities in SE Asia. Pretty sad that they think a name change will camoflague their massive mistake called CityCenter from officials in new jurisdictions, but that’s the level of intelligence we are dealing with here.
Rex, love your blog. Long time reader, first time commenter.
Written by alberta on April 22, 2010 at 6:39 pm
They are opening a casino 130 miles from Ho Chi Min Vietnam. Think I am joking?
Even Steve Wynns dick is limp for Vegas now.
The ship is sinking and the rats are jumping.
Asia is the new Vegas.
Written by coolpacific on April 22, 2010 at 9:05 pm
For swingers of the non CdS variety check out the HRH the weekend of May 8. Don’t ask me how I know this.
Written by keith on April 22, 2010 at 10:17 pm
per the Michael Jackson Cirque show – when it finally opens, i wonder if they’ll have a promo along the lines of “Bring a child and get half off!”
Written by FoolsGold on April 22, 2010 at 11:58 pm
>The most expensive and hyped property should still be riding the “must see, must stay at” energy,
> and should be full of paying guests, with comped rooms only for better players.
Perhaps those Better Players don’t stay at properties that are obviously “hyped”.
Perhaps even some of those less skillful players also are able to detect pure unadulterated hype and are not swayed into some sort of “must see, must stay” frenzy by public relations flacks.
If City Center can’t sell Expensive Rooms at high prices they will have to learn to sell Expensive Rooms at lower prices. It doesn’t matter what City Center spent building the place or what rosy projections they had its what is it worth to the consumer now.
If better players generally get comped I doubt the price of the room matters all that much. So room rates should be targeted for the less skillful gamblers anyway.
Written by james h on April 23, 2010 at 3:50 am
im here to tell you that last friday thru this tuesday city center was packed, it was wall to wall people spending money …they may not have been staying there but the property was crammed with people…the eateries, clubs and stores were full of people, so was the casino …so the “build it and they will come” seems to be pulling people it…when i was there in january, not so much, of course it had just opened.
this is the most metro sexual feeling place i have seen in las vegas, they should do major advertising in san francisco…ill be back in june, and be interested in seeing if its still pulling in people like this past week…
tourist want to see the newest. theme ..and i think it does have a theme, its a pretend city…yes thats it, a pretend metro sexual city…so all of you “locals” listen up…its a pretend city., without the slums, you have to go down to circus circus to pretend you are in the slums…..at least thats how the most important people “the tourist” see it…i think they need a little more agressive room pricing, hell they should just give them away, and tourist will get hooked…think about all the small town tourist who have never seen in anything like city center…its probably what they think living in new york city would be like…this is just as much a theme as any other property on the strip…at least thats how i see it…
Written by Rex on April 23, 2010 at 4:02 am
tourist want to see the newest. theme ..and i think it does have a theme, its a pretend city
Honestly, I don’t see this.
New York New York and Paris are far better pretend cities. There are pedestrians roaming around faux-streets and shopping at storefronts, street performers and the like.
City Center has an International Airport theme.
Take a cab into a gigantic loading zone and then roam inside of a gargantuan multi-level structure. You can take a people-mover between the various terminals, or you can shop at the ultra-modern mall.
Cities have networks of streets and sidewalks.
City Center is a nice enough property, but it doesn’t feel anything like a city.
At least not in my opinion.
Written by james h on April 23, 2010 at 4:33 am
rex, while i respect your opinion, you are far from a smalltown midwest resident…i didnt say it was real, i said it was pretend…center city differs from ny ny because it has seperate faux skyscrapers in a clump. you have lived it the real thing, the fly over tourist have not…this is what they “think” a big city might be like…ive never lived in a city with less than a million people, so i know the difference, but i know people who dont have a clue…and its not a representation of a whole city, just a block of the cleanest, newest part…of a future city, that will never exist…i bet the egyptians laugh at the luxor, and say its nothing like the real thing…no matter what it was the busiest property on the strip this past week…
i like staying in the palazzo, why? well the rooms are great…when i go back in june im staying at ny ny..why? because some of the 20 people that im going with are in that price range, and we all want to stay in the same hotel…i will stray in city center some day, why? just to say ive stayed there…like it or not its in vegas to stay, so we may as well find something positive about it…
ive stayed at just about every hotel on the strip..even the new frontier and sahara…(the frontier was the worst hotel ive ever stayed in), im glad its gone, but i dont like the empty lot…
anyway we agree to disagree…by the way i enjoy your blog!
Written by J. Louise on April 23, 2010 at 2:38 pm
Rex–You hit the nail right on the head about City Center being an International Airport theme. This highlights yet another interesting chapter on the current state of things in Vegas. It just takes more twists and turns as time goes by.
Written by Aaron on April 23, 2010 at 4:22 pm
James, i’ve got to say I think you are way off here. Most people know what the hell a city is like, even if its a smaller city in “fly-over” country. The VAST majority of Americans live in a suburban/metro area, even if its only Cincinnati or St Louis – instead of NYC. But they still know some form of a city. How the heck do you think they got to Vegas? THEY FLEW OUT OF A CITY.
Its fucking absurd to think that people are going to think “oh this is what city life is like”.
Written by James h on April 23, 2010 at 4:36 pm
The key word pretend. I can’t be much clearer than that….think Disney.
Written by Ron from MI on April 26, 2010 at 4:25 am
MGM/Mirage, Inc. to MGM Resorts International
I’ve got one comment….
LIPSTICK ON A PIG (if not a lion…)
’nuff said.