Competition on the Las Vegas Strip is rarely static. But with the upcoming reopening of The Mirage as a Hard Rock property – complete with its distinctive guitar-shaped hotel – the market is preparing for another shift in dynamics.
For MGM Resorts International CEO Bill Hornbuckle, however, the message appears clear: MGM knows exactly what’s coming and believes the Strip’s evolving experience-led model will absorb the new entrant.
Speaking at the J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum, Hornbuckle struck a confident tone about the state of Las Vegas, even while acknowledging some softness in the value-driven leisure segment.
“Our high-end business continues to perform and perform well,” he said. “The further you go down the spectrum, the softer it gets.”
Is MGM's high-end strategy paying off?
MGM’s comments reinforce a trend visible across the Strip over the past few years: luxury and premium experiences continue to outperform budget offerings.
Hornbuckle noted that the company’s value-focused properties – such as Excalibur and Luxor – have experienced some softness. Yet their impact on the overall business remains limited.
“I’ll remind everybody, Luxor, Excalibur… I think [that’s] like 6% of our overall EBITDA,” he said.
Meanwhile, MGM’s higher-end developments – including premium dining venues and exclusive gaming areas – are driving performance.
The company has invested heavily in high-limit gaming areas at flagship properties such as Bellagio, MGM Grand and ARIA. These investments are part of a broader strategy aimed at attracting high-spending guests while maintaining Las Vegas’ reputation as a global entertainment hub.
Is Las Vegas evolving into an “experience destination”?
Another key theme emerging from Hornbuckle’s comments is the transformation of Las Vegas into what he describes as a hub for “experiential” tourism.
“No, it’s not the Las Vegas it used to be,” he said in response to criticism that the destination has become too expensive. “It is the new Las Vegas… providing better value for experiences than it’s ever provided before.”
Major events are increasingly central to this strategy. Hornbuckle pointed to sports, concerts and international events as powerful demand drivers.
Whether it’s the Super Bowl, Formula 1, WWE events or major concerts, these high-profile spectacles bring significant visitor numbers to the city. According to Hornbuckle, that programming is only set to intensify.
“I think you’ll see a lot of fireworks around here over the summer,” he said.
This approach reflects a broader shift within the Las Vegas business model: revenue is no longer driven solely by gaming but by a diversified mix of entertainment, dining and large-scale events.
No, it's not the Las Vegas it used to be. It is the new Las Vegas that I would say is providing better value for experiences than it's ever provided before in its history
How is MGM preparing for Hard Rock’s arrival on the Strip?
While MGM remains optimistic about demand, the arrival of Hard Rock at the former Mirage site is clearly on the company’s radar.
Hornbuckle acknowledged that the brand represents a formidable competitor.
“Hard Rock are serious competitors,” he said. “We deal with them in New Jersey… they have a meaningful database.”
The company’s strategy appears rooted in preparation rather than concern.
“We’re going to get ready for it,” Hornbuckle said. “We’re not taking it lightly.”
Hard Rock’s planned 5,000-seat theatre could directly compete with entertainment offerings at properties such as Park MGM, making the live entertainment segment a key battleground.
Can the Las Vegas market absorb new competition?
Despite the competitive landscape, MGM does not appear overly worried about supply pressure.
Hornbuckle noted that recent Strip openings – including Resorts World and Fontainebleau – did not significantly affect MGM’s performance.
“Fontainebleau and Resorts World have not hurt us in any way,” he said. “Actually, we grew through those openings.”
This suggests MGM views Las Vegas less as a zero-sum market and more as a growing global destination capable of absorbing new supply.
The bigger picture
Ultimately, Hornbuckle’s remarks paint a picture of an operator leaning into Las Vegas’ next evolution.
Luxury experiences, large-scale events and premium entertainment are becoming the Strip’s core growth drivers – and MGM is doubling down on those areas.
Hard Rock’s arrival may intensify competition, but if Hornbuckle’s comments are any indication, MGM sees it as a challenge it is already preparing for – not one that will fundamentally disrupt its position on the Strip.
MGM Resorts recently completed a $300m renovation of nearly 4,000 rooms at MGM Grand, part of a wider push to upgrade its Las Vegas portfolio and strengthen its appeal to higher-value guests
