With a grandiose flourish, MGM Resorts proudly announced a historic revenue record stemming from the recent Las Vegas Grand Prix weekend. Jonathan Halkyard, the Chief Financial Officer of MGM, trumpeted the achievement at the Bank of America Leveraged Finance Conference. He portrayed the event as a groundbreaking triumph. However, this revelation opened the door to a tale of contrasts, where success for one translated to a dissonant chord for many others as the fans vehemently voiced their opinion.
The Las Vegas GP weekend emerged as a financial juggernaut, breaking all-time records for hotel revenue in the history of MGM’s empire along the Strip. Jonathan Halkyard compared it even to the iconic 2019 CES trade show, formerly the pinnacle of MGM’s Strip properties’ weekends. Per asgam.com, Halkyard said at a conference on Wednesday, “When you think about other events that have happened in Las Vegas over the years and the scale of our company, that’s quite something to have a record weekend on what was otherwise the slowest weekend of the year.”
The weekend before Thanksgiving is usually the slowest weekend of the year in Las Vegas.
But MGM's CFO says the Las Vegas Grand Prix ended up being the highest-grossing weekend for hotel revenue in company history.
“The race met every one of our expectations."
That's wild 💰 pic.twitter.com/jPNh0UZmdj
— Joe Pompliano (@JoePompliano) November 30, 2023
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The strategic investment made in transforming the typically sluggish November weekend paid off handsomely, surpassing even the loftiest expectations. Halkyard acknowledged the expectations MGM Resorts had for the event and the subsequent heavy investments made to enhance the experience for casino and retail customers. The strategic positioning of events in front of the Bellagio and other locations aimed to maximize the weekend’s potential.
Read More: Despite Mass Backlash by Residents, “Well-Versed” F1 Lauds Itself for Las Vegas GP Prep
Yet, beneath the surface of celebrations, a murmur of discontent reverberates through the streets of Las Vegas. Acknowledging the buildup of “friction” leading to the event, Halkyard hinted at the discontent simmering among the locals. While the hotel giant basks in the glory of unprecedented revenue, the F1 fans, deeply entwined with the beating heart of the racing community, paint a contrasting narrative.
The F1 community is not impressed by MGM’s success at the cost of other local businesses
The triumph for MGM Resorts stands in stark contrast to the sentiments expressed by Formula 1 fans who witnessed the impact on local businesses during the Las Vegas Grand Prix weekend. While the weekend brought unparalleled success for MGM’s hotels and casinos, the celebration was met with concerns from fans who pointed out the collateral damage suffered by many other businesses in the vicinity.
Despite expressing happiness for MGM Resorts, one fan bluntly highlighted the other side of the coin. This sentiment resonated across social media platforms as fans took stock of the broader impact on the local economy.
I am so happy for the MGM Resorts – sadly, there are tons of other businesses that suffered for months and then lost money during @F1LasVegas.
Not to mention the workers, locals and tourists.
Hopefully it will be better next year, especially for those that lost money!
— 🇺🇲 VegasBorn 🍊 (@craziemous) November 30, 2023
Another fan, seemingly disappointed, pointed out the dominance of mega-casinos at the expense of the rest of the city. The pricing strategies employed by MGM Resorts during the F1 weekend also drew criticism from fans.
Sooo the mega casinos sucked off the business and ripped off the rest of the city… and here they are touting it. Smh
— Regi (@36regi) November 30, 2023
The inflated prices during such events contribute to the staggering revenue figures but also show the struggles of those unable to afford such premium rates.
You can always have a historically highest grossing hotel revenue if you mark up the rooms to their highest historical rates
— Normie Puppet (@NormiePuppet) November 30, 2023
All the fans’ sentiments pointed toward a collective expression of disappointment for the local businesses that bore the brunt of the F1 weekend’s economic dynamics.
Great for the hotel executives, terrible for all of the local businesses that suffered with little to no business…
— (Un)Rooted In Oakland – SELL THE TEAM (@OaklandRooted) November 29, 2023
One fan’s wry observation underscored the uneven distribution of benefits, with a glaring spotlight on a corporate giant’s triumph leaving local businesses in the shadows.
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how nice for the multibillion dollar corporation with half the properties along the F1 track in their portfolio.
what about the rest of Las Vegas?
ah wait I forgot, we got 40% discounts on surplus merch 🎉— 3DotsOneDash (@3DotsOneDash) November 29, 2023
The candid voices of Formula 1 fans resonate with a broader concern about the balance between mega-events and the well-being of local economies. While the Las Vegas Grand Prix undoubtedly brought unprecedented success for MGM Resorts, the nuanced conversation sparked by the fans reflects the need for a more comprehensive approach to major events, one that considers the interests of even smaller local businesses.
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