Occupancy hits 90% at MGM's Las Vegas hotels

By Danny King
Las Vegas continues to draw more visitors, as MGM Resorts International in its first-quarter report said occupancy at its hotels in the city rose 3 percentage points, to 90%.

The higher occupancy rate more than offset the effect of a lower take from the Aria’s casino. The Aria is part of the massive CityCenter resort, of which MGM Resorts owns 50%.

Revenue per available room (RevPAR) at Las Vegas hotels rose 4% from a year earlier. CityCenter revenue fell 11% to $234 million, and its operating loss tripled to $18.6 million. MGM said Aria's profit from table games was lower than expected.

Companywide, revenue increased 51% to $2.29 billion, with MGM China boosting sales by 18% to $702 million. Excluding MGM China, revenue rose 5%.

MGM’s first-quarter loss widened to $217.3 million from $89.9 million a year earlier.

The company took a $27.1 million tax-provision charge, compared with a $54.6 million tax benefit a year earlier, on MGM China dividends. It also recorded a $59 million charge on the retirement of some debt.

Improved Las Vegas hotel results and the inclusion of its Macau operations under the now-consolidated MGM China subsidiary boosted operating profit by 13%. MGM Resorts consolidated MGM China last June.

Follow Danny King on Twitter @dktravelweekly 
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