Mgm Resorts International Case Study

2008 brought some problems for MGM. On October 29th of that year, MGM reported a sixty-seven percent plunge in third-quarter earnings, due mostly in part to lagging revenues from its Las Vegas properties. On that same day, MGM decided to halt a five million dollar Atlantic City project which was to be built on land next to Borgata Hotel and Casino. Shortly after this announcement, New Jersey gambling regulators were set to deny MGM's suitability to operate casinos in New Jersey. This was due mainly in part to their partner, Pansy Ho, who New Jersey regulators believed could not operate independently of her father, Stanley Ho. This forced MGM to sell their New Jersey property, Borgata Hotel and Casino, which was a highly profitable piece of business. Finally, at the end of 2008, MGM decided to sell its Las Vegas Treasure Island property. Around the same time, MGM also introduced Jim Murren as their new CEO. Murren was behind many of the major acquisitions that helped transform MGM and had been repeatedly honored as the gaming and lodging industry's top CFO by Institutional Investor magazine. This promotion came at an important time as MGM had fallen on some hard times.

Manage rather than own hotel assets In 1987, Marriott developed more than $1 billion worth of hotel properties, making it one of the 10 largest commercial real estate developers in the United States. With a fully integrated development process, Marriott identified markets, created development plans, designed projects, and evaluated potential profitability. After development, the company sold the hotel assets to limited partners while retaining operating control as the general partner under a long-term management contract. Management fees typically equaled 3% of revenues plus 20% of the profits before

The Marriott Corporation (MC), had seen a long, successful reign in the hospitality industry until the late 1980s. An economic downturn and the 1990 real estate crash resulted in MC owning newly developed hotel properties with no potential buyers in sight and a mound of debt. During the late 1980s, MC had promised in their annual reports to sell off some of their hotel properties and reduce their burden of debt. However, the company made little progress toward fulfilling that promise. During 1992, MC realized that financial results were only slightly up from the previous year and their ability to raise funds in the capital market was severely limited. MC was left with little choice, as they had to

In 1993 the Desert Inn is sold to ITT-Sheraton. That same year the new MGM Grand opens and again becomes the world’s largest hotel with over 5,000 rooms. In addition a seasonal theme park called the MGM Grand Adventures opens on-site. In 1994 MGM Grand Air sells and becomes Champion Air. In 1995 MGM purchases the Diamond Beach Hotel and Casino in Australia which became the MGM Grand Australia. The following year MGM managed and developed four hotels in South Africa. Primadonna Resorts and MGM Grand collaborate to build the New York- New York hotel across from the MGM Grand in 1997. 1999: MGM Grand then acquires Primadonna Resorts which included The Primm Valley Resorts along California and Nevada’s state line. That same year MGM Grand Detroit opens. Also in that same year a series of high-end luxury suites open at the MGM Grand Las Vegas called “the

It is only logical to enjoy your time in Vegas, and with the MGM Grand, it is a guarantee. Do it big when you go to Vegas. The advertisement goes as far as to say “Your alter ego is waiting. Escape begins at MGM Grand.” MGM Grand wants you to make the right hotel choice, which is why all the pictures and text are necessary to persuade vacationers to stay there. Instead of worrying about price, look at what all they have to offer.

MGM Resorts International, NAICS Code 721120 are a sound global hospitality company that is featured in the Fortune 500 that operates an assortment of portfolios of destination resort brands. The operations of the company are divided into two divisions that include the MGM China as well as the Wholly Owned Domestic Resorts. Via the division on Wholly Owned Domestic Resorts, the company manages, owns and operates 15 resorts located in Nevada, Mississippi and Michigan. The resorts located in Las Vegas comprise of the MGM Grand Las Vegas, Bellagio, the Mirage, Mandalay Bay, Monte Carlo, Luxor, Excalibur, Circus-Circus and New York-New York. Resorts located in other cities in Nevada are the Gold Strike in Jean, Circus-Circus in Reno and Railroad Pass in Henderson. Beau Rivage and Gold Strike are in Mississippi and MGM Grand Detroit is in Michigan. The organization additionally possesses Shadow Creek, an elite golf course found ten miles north of its Las Vegas Strip resorts, and Primm Valley Golf Club at the California/Nevada state line. The company owns additional land adjacent to Borgata, a portion of which consists of common roads, landscaping and master plan improvements, and a portion of which was planned for a wholly-owned development, MGM Grand Atlantic City ("Market Research Reports - Research and Markets - Page unavailable," n.d.). The company additionally owns over 50% of other properties in Nevada and Illinois. For the concurrent segment, MGM

Synopsis of the Situation The Bellagio was one of 23 properties of MGM MIRAGE, one of the world's leading hotel and gaming companies. Located in the heart of Las Vegas, The Bellagio was widely recognized as one of the premiere casino resorts in the world. Richly decorated, the resort featured a conservancy filled with unique botanical displays, and eight-acre lake featuring over 1,000 fountains that performed a choreographed ballet of water, music, and lights, top-notch amenities and entertainment options, and 200,000 square feet of convention space. In the casino operations area, the Bellagio operated 2,409 coin-operated gaming devices (slot machines), and 143 game tables. Approximately 1,000 people were employed in casino operations. As

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

• What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure.

Wynn Resorts Limited is a publicly traded corporation based in Paradise, Nevada that is a developer and operator of high end hotels and casinos. It was formed on October 25, 2002 by former Mirage Resorts Chairmen and CEO Stephen A. Wynn. The target client base for Wynn Resorts are affluent individuals who seek the highest quality—Wynn and its sister property Encore hold more Forbes Five Star awards than any other casino resort in the world. Recently, Steve Wynn has taken his brand global by building in Macau, China. With the opening of the Wynn and Encore Towers, Steve Wynn has proven that upscale gambling can be accomplished outside of Las Vegas. Steve Wynn’s marketing strategy is to emphasize the quality of service

One of the main tasks of the enterprises of various forms of ownership and spheres of activity - the search for effective ways to manage labor to ensure the activation of the human factor and achieve the best production results. The company «Hyatt Hotels Corporation» is today one of the leading companies offering hotel services. The company, headed more than 500 hotels all over the world, is of great interest as an object of study of the corporate culture, because it includes a huge number of employees (more than 30 thousand people). Hyatt Hotels and Resorts are distinguished unsurpassed quality of services precisely because of its staff. At the heart of the corporate principles of the company have the task to give our employees

Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase

MGM Mirage is one of the largest gaming industries in the United States and specifically Las Vegas, Nevada. The two people responsible for the start of this empire are Kirk Kerkorian and Steven Wynn. Kirk Kerkorian opened up the first MGM Grand in Las Vegas, Nevada in 1973. Steven Wynn moved to Las Vegas in 1967 and after investing in land on the strip he later opened up the Mirage, followed by Treasure Island and the Bellagio. The MGM Mirage was created during the merger in 2000, and Steven Wynn is no longer affiliated with this company. Since this merger, MGM Mirage has grown and acquired numerous other properties. Currently MGM Mirage acts as a holding company and conducts operation

Wynn Resorts Limited (Wynn) is high-end developer and operator of resort-style casinos. Wynn offers hotel rooms and suites, gambling, fine-dining, spas, and boutiques. Founded in 2002 by American business magnate Steve Wynn, the company currently has two locations in Las Vegas, Nevada and two locations Macau, China. In 2016, Wynn plans to open Wynn Palace, a 1,700 room hotel and casino in Macau. The company is publicly traded on the NASDAQ Global Select Market under the ticker symbol WYNN.

Marriott International within their respective market segments are one of the largest hotel groups globally.