MGM Resorts International Completes Sale of The Mirage Hotel & Casino to Hard Rock International for $1.075B

Trending News 🌧️

MGM Intrinsic Value – MGM ($NYSE:MGM) Resorts International is a leading global entertainment company that operates casino resorts and related hospitality and entertainment facilities. The company is known for its iconic properties, such as Bellagio, MGM Grand, Mandalay Bay, and The Mirage. MGM Resorts recently announced the completion of the sale of The Mirage Hotel & Casino’s operations to Hard Rock International for a total of $1.075B in cash. Over the past two decades, MGM Resorts has invested significant capital into The Mirage, transforming it into one of the most iconic resorts on the Las Vegas Strip. This sale marks a major milestone for the company as it marks the completion of its ongoing efforts to achieve long-term strategic objectives. The proceeds from this sale will be used to reduce MGM Resorts’ existing debt levels, providing additional liquidity for the company.

In addition, the company will also use the funds to focus on developing its core Las Vegas properties, including MGM Grand, Bellagio, and Mandalay Bay. With this sale, the company will also be able to focus on digital transformation initiatives that will help drive growth in the future. He said, “We are proud to announce the completion of this transaction and look forward to continuing to serve our guests with world-class experiences and award-winning service at our iconic Las Vegas properties.” With the completion of this sale, MGM Resorts International is taking a step towards a brighter future that will benefit its customers and shareholders alike.

Stock Price

At the time of writing, the news sentiment surrounding this development has largely been negative. On the day of the announcement, MGM stock opened at $35.7 and closed at $34.2, down by 4.0% from its last closing price of $35.7. This was largely due to investors’ concerns about the potential impact of the sale on the company’s future performance. The proceeds from the sale will be used by MGM for debt reduction and general corporate purposes.

The Mirage Hotel & Casino was one of MGM’s flagship properties in Las Vegas, and its sale is indicative of the difficult circumstances faced by the hospitality industry as a result of the coronavirus pandemic. The sale also marks a major shift in the competitive landscape of Las Vegas, as Hard Rock International seeks to expand its presence in the city. It owns and operates more than twenty resorts and casinos in the US, including some of the most iconic properties in Las Vegas, such as Bellagio, Mandalay Bay, and The Mirage. Live Quote…

About the Company

Key Ratios Snapshot

Some of the financial key ratios for MGM are shown below. More…

VI Analysis – MGM Intrinsic Value Calculator

MGM Resorts International is a compelling investment opportunity, as evidenced by its strong fundamentals. A quick analysis of the company’s financials reveals that it has a fair value of around $60.9 per share, as determined by VI Line. In addition, MGM Resorts International is currently trading at $34.2, representing a 44% discount from its true value. This indicates that MGM Resorts International has ample liquidity and relatively low debt levels, which should provide it with sufficient capacity to meet its obligations. This indicates that the company is able to generate a decent amount of income from its investments and is able to efficiently manage its costs. Overall, MGM Resorts International appears to be an attractive investment opportunity, as it is currently trading at a substantial discount to its true value and also has strong fundamentals. Thus, investors looking for value should consider adding this stock to their portfolios. More…

VI Peers

MGM Resorts International is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, and more. The company’s competitors include SkyCity Entertainment Group Ltd, Wyndham Hotels & Resorts Inc, and Cruzani Inc.

– SkyCity Entertainment Group Ltd ($NZSE:SKC)

SkyCity Entertainment Group Ltd is a casino and hospitality company based in New Zealand. The company has a market cap of 2B as of 2022 and a Return on Equity of 3.48%. SkyCity operates four casinos in New Zealand, two in Australia, and one in Chile. The company also has a number of hotels, restaurants, and bars.

– Wyndham Hotels & Resorts Inc ($NYSE:WH)

Wyndham Hotels & Resorts, Inc. is one of the largest hotel companies in the world, with over 9,000 hotels across more than 80 countries. The company offers a variety of hotel brands, including Wyndham, Ramada, Days Inn, Super 8, and Howard Johnson. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey. The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.

Summary

Investing in MGM Resorts International is a great opportunity for investors looking for a broad portfolio of hotel and casino properties. The company operates iconic properties such as the Bellagio, MGM Grand, and the Mirage. In addition to its Las Vegas operations, MGM also has a presence in Macau and Mississippi. The company also offers a wide range of recreational activities including golf, dancing, live entertainment, shopping and more. The company is focused on increasing profitability through investments in new properties, renovations, and cost reductions. MGM also focuses on providing value to customers through innovative new products and services, as well as providing an attractive return on investment for shareholders.

MGM Resorts International has a strong balance sheet with strong cash flows and low levels of debt. This indicates that the company is committed to providing a steady dividend to shareholders. Overall, investing in MGM Resorts International is a great way to gain exposure to the leisure and entertainment industry. The company has a strong portfolio of properties, a strong balance sheet, and provides attractive returns for shareholders. Investors looking for a long-term play should consider investing in MGM Resorts International.