MGM Resorts Faces Challenges in Las Vegas with Declining Revenues in 2025, But Optimism Grows for Tourism Opportunities in 2026 Amid Major Sporting Events – Everything You Need to Know About Declining Revenues and What It Means for Travelers

MGM Resorts International, one of the biggest players in the Las Vegas hospitality and tourism sector, encountered a tough year in 2025. Despite reporting $4.6 billion in net revenues for the fourth quarter, marking a 6% year-over-year growth overall, the company experienced notable challenges in its Las Vegas segment. The iconic resorts along the Strip—including the MGM Grand—saw a decline in revenue and profitability across all four quarters of 2025. However, CEO Bill Hornbuckle remains confident in the city’s future, citing strong demand for group business and conventions, as well as the upcoming calendar of major sporting events. The company believes that Las Vegas will continue to offer extraordinary value, especially as it looks forward to a year of renewed optimism in 2026.

A Year of Struggles for MGM Resorts in Las Vegas

MGM Resorts International, which operates several major properties along the Las Vegas Strip, faced a challenging 2025, as its operations in the city encountered continuous declines in revenue. For the full year, the company saw its Las Vegas segment experience a 4% drop in net revenues and an 8% decline in adjusted EBITDAR. The fourth quarter alone showed a 3% year-over-year revenue dip and a 4% drop in adjusted EBITDAR.

While MGM’s consolidated revenues rose by 6% year-over-year, Las Vegas continued to be a problematic area, largely due to disruptions in tourism. The Las Vegas Convention and Visitors Authority reported that visitor volume in December dropped by 9.2% compared to the previous year, exacerbating the already challenging conditions for businesses in the region.

The Struggles of Tourism and Travel in 2025

The turbulence in the Las Vegas market was largely tied to tourism declines throughout 2025. Much of this can be attributed to weakened international travel and a significant decline in Canadian visitors, a crucial demographic for the city’s tourism. Leisure travel also saw setbacks, with a noticeable drop in visitor volume, particularly during the year’s final quarter.

Hotels in Las Vegas, including those operated by MGM, faced a decline in occupancy rates, average daily rates (ADR), and Revenue per Available Room (RevPAR), which are key metrics used to measure a hotel’s financial performance. Specifically, RevPAR in Las Vegas for MGM’s properties dropped by 10% in Q4, signaling a tough environment for resorts, especially those heavily reliant on tourists and conventions. This downward trend contributed to the broader tourism-related disruptions experienced across the market, leaving Las Vegas businesses scrambling to find solutions for a challenging year.

Optimism Remains as Las Vegas Rebuilds for the Future

Despite the difficult performance in 2025, Bill Hornbuckle, CEO of MGM Resorts, emphasized the company’s optimism for 2026 and beyond. He pointed out that the company is actively investing in renovations and capital improvements to position its properties for success. Notably, the MGM Grand Hotel completed a $300 million remodel of its 3,969 rooms and suites in 2025, aimed at revitalizing its offerings for visitors.

As Las Vegas remains one of the world’s top destinations for conventions, meetings, and large-scale events, MGM Resorts is benefiting from strong group business and a solid convention calendar for the upcoming year. With major events like the Super Bowl and the FIFA World Cup making Las Vegas a hub for sports tourism, MGM’s strategic positioning in the city is well-timed to capture new opportunities.

Hornbuckle remains confident that Las Vegas will continue to be an attractive market for both domestic and international travelers, pointing to its unique proximity to major sporting events and its robust convention infrastructure.

What Tourists Can Expect in Las Vegas in 2026

For travelers planning a trip to Las Vegas in 2026, there are several key takeaways from MGM Resorts’ optimistic outlook:

1. New Developments: With $300 million renovations completed, MGM Resorts is set to offer upgraded hotel rooms, bringing a fresh experience to visitors staying at iconic properties like the MGM Grand. These renovations come just in time for 2026, when MGM plans to expand its offerings to new group business and convention travelers.
2. Proximity to Major Events: Las Vegas is gearing up for major sporting events, including the Super Bowl and World Cup matches in nearby cities. As the sports tourism market grows, Las Vegas will benefit from being a key destination for sports fans.
3. Increased Group and Convention Business: 2026 looks to be a strong year for convention tourism, which plays a vital role in Las Vegas’ economy. MGM Resorts is optimistic about the demand for meetings, conferences, and group events in the coming months, offering travelers a chance to attend world-class events while enjoying the attractions the city has to offer.

Las Vegas: The Resilient Jewel of Tourism

Despite the challenges faced in 2025, Las Vegas continues to hold its place as one of the world’s premier tourist destinations. Known for its entertainment, luxury resorts, and iconic casinos, Las Vegas’ ability to reinvent itself time and time again gives it a unique advantage. As the city recovers from a year of slower tourism, the future looks promising, especially with ongoing investments from major players like MGM Resorts.

Travelers can continue to expect world-class experiences and events, with enhanced offerings in the hotel and convention space. With major projects already in place, MGM Resorts is positioning itself to capitalize on the rebound in the Las Vegas tourism market.

For tourists planning their next trip to Las Vegas, this is an exciting time to experience the refreshed luxury and vibrant entertainment that the city is known for, while benefiting from its proximity to international events that bring in visitors from all corners of the globe.

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