MGM RESORTS INTERNATIONAL AND MARRIOTT INTERNATIONAL SIGN AGREEMENT TO LAUNCH W LAS VEGAS

Rhea-AI Summary

MGM Resorts International (NYSE: MGM) and Marriott International, Inc. (Nasdaq: MAR) have announced plans to convert an iconic property on the Las Vegas Strip to W Las Vegas, part of the W Hotels brand within the Marriott Bonvoy® portfolio. This conversion, anticipated to complete later this year, is the latest step in the companies' long-term strategic licensing agreement announced in July 2023.

Since the MGM Collection with Marriott Bonvoy officially launched in March 2024, bookings have significantly outpaced projections. The collaboration allows Marriott Bonvoy's 200 million members to enjoy benefits and redeem points at MGM Resorts' destinations, while MGM Rewards members can status match and receive benefits at Marriott's global portfolio of approximately 9,000 properties.

Located on the Mandalay Bay Campus, W Las Vegas will be the 12th destination on the Las Vegas Strip within the MGM Collection with Marriott Bonvoy, joining properties such as Bellagio, ARIA Resort & Casino, and The Cosmopolitan of Las Vegas.

Positive

• Conversion of an iconic Las Vegas Strip property to W Las Vegas, expanding the MGM-Marriott collaboration
• Bookings for MGM Collection with Marriott Bonvoy significantly outpacing projections since March 2024 launch
• Addition of W Las Vegas brings MGM Collection with Marriott Bonvoy to 12 destinations on the Las Vegas Strip
• Enhanced benefits for 200 million Marriott Bonvoy members at MGM Resorts destinations
• MGM Rewards members gain access to benefits at Marriott's global portfolio of approximately 9,000 properties

Negative

• None.

Insights

Hospitality Industry Analyst

The partnership between MGM Resorts and Marriott International marks a significant strategic move in the hospitality industry. The conversion of an iconic Las Vegas Strip property to W Las Vegas demonstrates the continued evolution of luxury offerings in the city. This collaboration leverages the strengths of both companies:

• MGM gains access to Marriott's extensive brand portfolio and distribution channels
• Marriott expands its presence in the lucrative Las Vegas market
• Both companies benefit from cross-pollination of their loyalty programs

The success of the MGM Collection with Marriott Bonvoy, with bookings significantly outpacing projections, indicates strong consumer interest. This could potentially lead to increased occupancy rates and higher average daily rates for MGM properties. The addition of W Las Vegas to the portfolio further diversifies MGM's offerings, potentially attracting a new demographic of luxury lifestyle travelers.

For investors, this partnership could translate to enhanced revenue streams and improved competitive positioning for MGM in the Las Vegas market. The ability to tap into Marriott's 200 million Bonvoy members represents a substantial opportunity for customer acquisition and retention.

Market Research Analyst

The strategic licensing agreement between MGM Resorts and Marriott International presents a compelling value proposition for both companies and their shareholders. Key points to consider:

• Brand Synergy: W Hotels' luxury lifestyle brand aligns well with Las Vegas's entertainment-focused market, potentially driving higher-value bookings.
• Loyalty Program Integration: The cross-pollination of MGM Rewards and Marriott Bonvoy creates a powerful loyalty ecosystem, likely increasing customer retention and lifetime value.
• Distribution Channel Expansion: MGM gains access to Marriott's global distribution network, potentially reducing customer acquisition costs and expanding its international reach.

The initial success of the MGM Collection with Marriott Bonvoy, evidenced by the "hundreds of thousands of room nights booked," suggests strong market acceptance. This could lead to increased market share for MGM in the competitive Las Vegas hospitality landscape.

Investors should monitor key performance indicators such as RevPAR (Revenue Per Available Room) and occupancy rates in the coming quarters to gauge the partnership's impact on MGM's financial performance.

W Las Vegas marks the latest step in the long-term strategic licensing agreement between MGM Resorts International and Marriott International

LAS VEGAS, Oct. 21, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) and Marriott International, Inc. (Nasdaq: MAR) announced plans to convert an iconic property on the Las Vegas Strip to the W Hotels brand within the Marriott Bonvoy^® portfolio, continuing the brand's storied evolution. Anticipated to complete its conversion later this year, W Las Vegas marks the latest step in the companies' long-term strategic licensing agreement announced in July 2023.

"Our relationship with Marriott has far exceeded our expectations, demonstrating the power of its brand portfolio and the strength of their distribution channels," said Steve Zanella, President of MGM Resorts Operations. "W Las Vegas, the latest hotel to come to life as part of our collaboration, will allow our guests to access a new luxury lifestyle experience recognized worldwide for its distinct personality, dynamic programming and elevated service culture."

"We're thrilled to continue working with MGM to bring W Las Vegas to the legendary Las Vegas Strip," said Leeny Oberg, Marriott International Chief Financial Officer and EVP, Development. "This agreement is a pivotal moment in our collaboration, which continues to expand hospitality and entertainment offerings for guests. As a luxury brand rooted in bold design and nightlife, W Hotels is well-positioned to elevate experiences for travelers in this destination."

Since MGM Collection with Marriott Bonvoy officially launched in March 2024, bookings are significantly outpacing anticipated projections with hundreds of thousands of room nights booked. This collaboration between two trusted hospitality brands means more than 200 million Marriott Bonvoy members can enjoy unique benefits and redeem points at MGM Resorts' destinations while MGM Rewards members can status match and receive member benefits at Marriott's global portfolio of approximately 9,000 properties.

Located on the Mandalay Bay Campus, the property is slated to officially join the W Hotels portfolio later this year, with additional plans for the property to be announced in the future.

With the addition of W Las Vegas, MGM Collection with Marriott Bonvoy will encompass 12 destinations on the Las Vegas Strip, including Bellagio, a Luxury Collection Resort & Casino, ARIA Resort & Casino, Autograph Collection, The Cosmopolitan of Las Vegas, Autograph Collection, and Mandalay Bay Resort & Casino, MGM Collection, among others.

To learn more about MGM Collection with Marriott Bonvoy, visit here.

ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary LeoVegas AB offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®.

ABOUT MARRIOTT INTERNATIONAL
Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of approximately 9,000 properties across more than 30 leading brands in 141 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy^®, its highly awarded travel program. For more information, please visit our website at www.marriott.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram. 

FORWARD LOOKING STATEMENTS
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the conversion to the W Hotels brand and any expected benefits to the Company or guests of the property as a result of the conversion. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. The Company does not guarantee that the conversion or other events described herein will happen as described (or that they will happen at all). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to the economic and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of conversion or expansion projects, risks relating to domestic and international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MEDIA CONTACT  
media@mgmresorts.com                                    

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SOURCE MGM Resorts International

FAQ

When is W Las Vegas expected to complete its conversion?

W Las Vegas is anticipated to complete its conversion later in 2024, according to the announcement by MGM Resorts International (NYSE: MGM) and Marriott International.

How many destinations will MGM Collection with Marriott Bonvoy include on the Las Vegas Strip after adding W Las Vegas?

With the addition of W Las Vegas, MGM Collection with Marriott Bonvoy will encompass 12 destinations on the Las Vegas Strip.

When was the MGM Collection with Marriott Bonvoy officially launched?

The MGM Collection with Marriott Bonvoy was officially launched in March 2024, as stated in the press release.

How many Marriott Bonvoy members can now enjoy benefits at MGM Resorts destinations?

More than 200 million Marriott Bonvoy members can now enjoy unique benefits and redeem points at MGM Resorts' destinations.