New MGM Resort to make $220 million in 2018
MGM is currently working on the final stages of construction of its newest casino resort, called the MGM Cotai. It is expected to open later this year, during the final quarter of 2017. The new resort has reportedly cost $3.3 billion to construct. One of the world’s largest credit rating companies believes that the new resort will see good profits in its first year of operation.
MGM Investing Around the World
The MGM Resorts company, a conglomerate based in Nevada, has been investing heavily in projects throughout the globe, with a heavy focus on investments in China. The new resort is located on the Cotai strip, which has become the Las Vegas Boulevard of Macau. This massive investment from MGM will reportedly have around 1400 hotel rooms, as well as retail shopping, a luxury spa facility and 500 000 square foot space for casino games.
Investment experts believe that the MGM resort should immediately begin delivering a very strong return for the company and its shareholders. During the course of 2018, experts believe the casino could make as much as $220 million. While the resort will be one of the larger casino resorts in Macau, there will still be a few that are even larger. Wynn Palace has 1700 rooms available and cost over $4 billion to build, while The Parisian, which opened in 2016, has 3000 rooms.
MGM Feeling Confident Going Forward
While the global recession is still fresh in everyone’s minds, MGM is feeling very confident in the future of the casino industry. The company recently opened a new resort just outside of Washington DC and is also currently building a resort in Springfield, Massachusetts, which is costing just under $1 billion.
The company also recently took over Boyd Gaming’s 50% stake in the Borgata in Atlantic City, buying out Boyd Gaming for $900 million. The good news is that many investors seem to like what MGM is doing at the moment, as its share price has been steadily climbing on the New York Stock Exchange. In less than a year, the share price climbed from $23 to over $30 at the time of writing.