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If you look at Las Vegas’ MGM Mirage, things may not look so bright.  The company posted a $750 million quarterly net loss and a $1.17 billion in noncash impairment charges along with a revenue decline of 9%. This is a huge loss to deal with, but it is appropriate to the market and the recent recession of 2008-2009.  Although that is bad news for the company, they are focusing on good news. 

There is a $8.5 billion expansion development going on that has been titled the City Center.  The first part is a 1,500-room non-gaming Vdara. It opens at the end of November and is going to be a retail, dining and entertainment facility. Following it will be the Mandarin Oriental which is scheduled to open on December 4^th.  All of these projects are part of the 67-acre development of the Strip.  The MGM Mirage is planning to focus on growth of the City Center, hoping it will grow their market and fuel the Las Vegas financial rebound. The company now operates nine Strip hotel-casinos and wants to cater to the high-end customer needs and bring in more business. MGM Mirage CEO Jim Murren stated, “We’re not out of the woods and we’re not popping the champagne corks like the New York Yankees, but there are signs the market is healing itself. We know the market. None of our competitors has the empirical data that we have in front of us because we deal with every type of customer that comes to Las Vegas.”

City Center investors and owners are hoping that the City Center can elevate the revenue in Las Vegas 5-10% and increase the revenue per available room.  Revenue per available room is a common measurement of financial health by Wall Street. Murren added, “We believe this opening will truly differentiate ourselves. City Center is a must-see iconic destination. It is an investment not only for next year, but also for future years.”  The MGM Mirage is putting a lot of promise into the City Center and their hard work to develop it should pay off as long as the market is truly ready for a turnaround.