Recent Earnings Fuel Debate on Recovery (Image Credits: Pixabay)
Las Vegas – A pointed letter published in the Las Vegas Review-Journal has challenged the upbeat forecasts from MGM Resorts International’s leadership amid ongoing tourism challenges on the Strip.[1]
Recent Earnings Fuel Debate on Recovery
MGM Resorts reported strong fourth-quarter and full-year 2025 results last week, with consolidated net revenues reaching $4.6 billion in the final quarter and net income attributable to the company surging to $294 million.[2] Executives highlighted global portfolio strength, particularly in regional operations and digital segments, as drivers of growth.
However, performance on the Las Vegas Strip told a different story. Earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) for Las Vegas declined 4 percent year-over-year in the fourth quarter.[3] CEO Bill Hornbuckle expressed confidence in a rebound, stating the company remains well-positioned to capitalize on an improved outlook for 2026.[4]
Hornbuckle and other resort leaders, including Boyd Gaming’s Keith Smith, pointed to a temporary economic dip. They predicted visitation would return to 2024 record levels as Las Vegas weathers the slowdown through superior hospitality.[4]
Letter Questions True Path to Profitability
Eric Weinmann, a Las Vegas resident, penned a letter questioning the substance behind MGM’s optimism. He argued that margin improvements stemmed not from expansion or new ideas, but from layoffs among front-line staff and postponed investments in Strip properties.[1]
Weinmann asked pointedly whether the company had a concrete plan beyond cost reductions. His critique arrived just days after the earnings release, amplifying concerns about reliance on austerity measures rather than visitor growth.[1]
Such measures have supported profitability amid softer demand, yet they raise questions about long-term sustainability for an industry that employs 300,000 in Nevada and generates half the state’s tax revenue.[4]
Tourism Slump Sets Challenging Backdrop
The Las Vegas Convention and Visitors Authority documented a 7.5 percent drop in visitation to 38.5 million people in 2025, with declines every month for a full year. Hotel occupancy fell 3.3 percentage points to 80.3 percent.[4]
Past downturns offer perspective. The Great Recession and stalled projects like MGM’s CityCenter condo sales tested resilience, but leaders now draw parallels to those recoveries.
- Monthly visitation trended downward throughout 2025.
- Strip-specific revenues faced pressure despite corporate gains elsewhere.
- Online gaming and sports betting provided offsets, bolstering overall figures.
- Group and convention business remains a bright spot entering 2026.
- Regional casinos hit record slot wins, aiding diversification.
Balanced Views on the Horizon
MGM emphasized momentum in areas like BetMGM and international markets during its earnings call. Executives forecasted Las Vegas growth this year, driven by events and a stabilizing economy.[5]
Critics like Weinmann urge caution, viewing short-term fixes as insufficient for recapturing pre-dip vibrancy. The tension underscores broader uncertainties in hospitality recovery.
| Metric | 2025 | Change from 2024 |
|---|---|---|
| Visitation | 38.5 million | -7.5% |
| Occupancy | 80.3% | -3.3 pts |
| Las Vegas EBITDAR (Q4) | N/A | -4% |
- MGM posted net income gains despite Strip weakness.
- Optimism hinges on 2026 visitation rebound.
- Local voices highlight layoffs as margin booster.
Las Vegas has rebounded from tougher times before, but the path forward demands more than hope. Will cost controls suffice, or does innovation beckon? What do you think about the outlook? Tell us in the comments.
