MGM Resorts which offered $11,000 room packages for the F1 fans record highest revenue in history thanks to Las Vegas GP
Formula 1 Las Vegas GP resulted in MGM Grand, a hotel by the side of the Strip, recording all-time high weekend profits despite November being a slow month in the hotel business.
Illustration Las Vegas Grand Prix, F1 Grand Prix of Miami at Miami International Autodrome on May 7, 2023 in Miami, United States of America. Photo by HOCH ZWEI Miami United States of America *** Illustration Las Vegas Grand Prix, F1 Grand Prix of Miami at Miami International Autodrome on May 7, 2023 in Miami, United States of America Photo by HOCH ZWEI Miami United States of America
The Las Vegas GP was an entertainment extravaganza that lived up to the ambitions that the FIA had for the third F1 race in the United States. Even though Max Verstappen criticized the ‘show’ heavily at the start, it turned out to be one of the most exciting races of 2023 and it gave the Formula 1 fans a spectacle like never before. The Grand Prix raked in enormous sums in revenue as the ticket prices soared higher than any other race in the F1 calendar. In fact, one of the ticket packages for the Sin City event cost a whopping $1,000,000, offered by Wynn Las Vegas.
Now, with the successful end to the race, the Chief Financial Officer of MGM Resorts, a massive hotel chain that has the MGM Grand housed near the Vegas Strip, revealed their numbers. CFO Jonathan Halkyard hailed the event for bringing in profits that have made the Grand Prix weekend the highest grossing weekend in the company’s history. Thanks to the Las Vegas GP, Halkyard expects November to have all-time high revenue despite it being a traditionally slow month in the hotel business.
As Halkyard spoke at the Leveraged Finance conference organized by the Bank of America, he applauded the Las Vegas GP for the voluminous profits that resulted from the weekend.
We had very high expectations for what this event would be in Las Vegas and in particular because it was during what is normally one of the slower, if not the slowest, weekends in Las Vegas. The race met every one of our expectations. It was the highest grossing weekend for us in hotel revenue in the company’s history. So I’m very optimistic that this will be a fantastic event in the years to come.Halkyard said about the Las Vegas GP weekend profits, via Inside Asian Gaming.
MGM Resorts CFO explains how they invested heavily to make Las Vegas GP a profit pool
The F1 Las Vegas GP came up as a celebration of the rising interest in the pinnacle of motorsports amongst the Americans. And to make it one of the most extravagant affairs the people in the US have ever seen, the Formula One Management invested north of $500 million towards its organization. Halkyard, the MGM Resorts CFO, claims their company had invested heavily into the weekend as well.
F1 invested hundreds of millions of dollars of capital in their paddock facility and that, along with money we invested to build this hospitality experience. And because of our high expectations we invested pretty heavily into it, particularly in creating an experience for our casino customers and some retail customers in front of the Bellagio, among other things.
Walkyard also acknowledged that the path towards success had been a bit prickly for the Las Vegas GP, but it ultimately turned out to be a profitable weekend. And he also said he expects the upcoming years to see similar numbers thanks to the huge interest that the F1 fans seem to have for the night race on the famous Vegas Strip.
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