MGM Resorts International reported a weaker third quarter as lower room rates and extensive renovations weighed on its Las Vegas operations, but executives said bookings and convention demand suggest steadier months ahead.

Net revenue from the company’s Strip resorts fell nearly 7% to $2 billion for the three months ended September 30, down from $2.1 billion a year earlier, according to filings with the U.S. Securities and Exchange Commission. 

Casino revenue declined 5% to $450 million, while room revenue dropped 11% to $660 million as occupancy slipped to 89% from 94%. Average daily room rates eased to $236 from $243. Adjusted EBITDAR from Las Vegas fell 18% to $601 million.

However, Bill Hornbuckle, MGM’s president and chief executive, told investors that the company expects a rebound in the fourth quarter. 

“As we look to the fourth quarter, we see signs of stabilization as the luxury market segment continues exhibiting strength, groups and conventions are returning, all MGM Grand guest rooms will be upgraded and back online, and F1 (Las Vegas Grand Prix) ticketing pre-sales, particularly for the Bellagio Fountain Club, are pacing higher versus the prior year, all of which puts us on a solid footing as we approach 2026,” he said. 

Bill Hornbuckle, MGM’s President and Chief Executive

“Vegas is fine. Fundamentally, we feel good about the fourth quarter (of 2025).”

The company partly attributed the year-over-year earnings decline to renovation-related disruptions and one-time items. Chief Financial Officer Jonathan Halkyard said Las Vegas EBITDAR was affected by $78 million in lower occupancy and rates, $25 million linked to the MGM Grand remodel, and $27 million in reduced insurance proceeds. About half the operational impact came from Luxor and Excalibur, he added.

Citywide tourism data pointed to a slower summer overall. The Las Vegas Convention and Visitors Authority reported September visitation down 8.8% from a year earlier, while Strip gaming revenue fell 5.5% and downtown casinos saw a 2% decline.

The $300 million room renovation at MGM Grand, which closed several floors at a time for bathroom and plumbing upgrades, has now been completed. The company said it expects the refreshed product to support higher rates and occupancy as awareness grows. 

“Over time, (because) the actual product itself is spectacular, as word spreads about these upgraded rooms (at MGM Grand), we expect to see both occupancy and average daily rates rise,” Hornbuckle said.

Renovations at other MGM properties are in the pipeline. Aria’s room remodel is scheduled to begin in late 2026, with major work planned for summer 2027 to avoid key convention periods. The Cosmopolitan’s project will follow, part of a longer-term investment to maintain competitive offerings on the Strip.

Across the group, MGM Resorts reported consolidated net revenue of $4.3 billion, up 2% from a year earlier, supported by record quarterly results at MGM China. The China division’s revenue rose 17% to $1.1 billion, with adjusted EBITDAR up 20% to $284 million, while regional operations were steady at $957 million in revenue.

Still, the company posted a net loss of $285 million compared with a $185 million profit last year, largely due to a $256 million goodwill impairment tied to its decision to withdraw an application for a commercial gaming license at Empire City in New York and $93 million in other non-cash write-offs. 

Adjusted EBITDA fell to $506 million from $574 million, while adjusted earnings per share dropped to $0.24 from $0.54.

Meanwhile, the BetMGM North American joint venture with Entain reported accelerated growth in the third quarter, increasing full-year guidance for the second consecutive quarter.

The venture has announced cash distributions to MGM Resorts beginning in the fourth quarter of 2025. “The initial distribution to MGM is expected to be at least $100 million, proving significant progress on the growth, profitability, and free cash flow generation of the business,” Hornbuckle noted.