Anyone interested in staying at the Mandalay Bay Hotel in Las Vegas?
Some are interested and bookings remain but they are way down, according to industry sources.
In another result caused by the massacre, MGM stock (MGM owns Mandalay Bay), has fallen and Susquehana Financial Group, a group that studies and serves as a stockholder resource on what to buy and sell, has downgraded MGM.
“The tragedy will lead to lower profit and bookings in the coming months,” said Susquehana.
The price for MGM stock traded on the New York Stock Exchange closed at 30.75 after trading on Wednesday, October 4.
In fact, all casino stocks have suffered as a result of the massacre.
The expectation among analysts who study the ups and downs of casino operators is this: the massacre at the Mandalay Bay may keep tourists away from the region for the time being.
Immediately following the bloody event, MGM lost 6% of its stock price.
Other industry giants followed with 1&-2% losses in stock price.
This includes Wynn Resorts Ltd., Boyd Gaming Corporation and Las Vegas Sands Corp.
By and large, all the groups regained their losses in the days following the massacre.
MGM, it appears, has the most to lose from this event, however, according to industry sources.
MGM Resorts owns and operates 13 resorts and casinos on the Las Vegas Strip. In fact, this casino operator has maximum U.S. exposure compared with its peers and is thus severely affected by the incident. Additionally, a potential revenue loss from its Mandalay Bay property might have an impact on the company’s fourth-quarter results.
There have been some suggestions by frequent visitors to the Mandalay Bay that the place ought to be torn down.
But those thoughts are premature, as the company needs to see exactly what the results of the attack there are going to be.
The company has yet to make a statement about the future except to say that security is being heightened.
We know this — it will likely be a while before a music venue fills the Mandalay Bay concert area with 25,000 people.
Renting on the 32ndnd floor of the majestic hotel will be another source of difficulty.
Certainly no family will want to rent the room where the shooter ran from window to window shooting machine guns and reigning death on the concertgoers and leaving behind a stash of guns, ammunition and on the floor of the room, his own body after killing himself.
Right now, occupancy rates have eased and consumers are unsure of making reservations for visits to the storied gamblers/travelers oasis in the Nevada desert.
Investors are apprehensive that tourists might choose to stay away from Las Vegas in the wake of what became the deadliest mass shooting in modern U.S. history.