MGM Resorts International will spend $275 million to renovate seven of its wholly owned hotel properties. The work will include $70-million of renovations at the Bellagio in Las Vegas that includes remodeling all 2,568 standard guestrooms, and a $160-million remodel of 4,300 rooms in the MGM Grand.
The Bellagio project, already under way, has taken many rooms out of service for the quarter. At least $1 million in cash flow has been impacted because of the project, but renovated rooms that have been reintroduced are garnering average daily rates of $30 more than the pre-remodel rates, MGM says. If early indications hold up for the MGM Grand remodel, rooms there will generate a $10-$20 premium on average, the company says.
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