MGM Q3 Results: Flat Occupancy Did Not Protect Las Vegas Room Revenue

MGM’s Las Vegas Strip resorts filled the same proportion of rooms as a year earlier in the third quarter, yet room revenue fell 6%. Occupancy stayed at 89%; the average daily rate dropped from $236 to $218. The distinction helps explain why a busy-looking hotel can still produce weaker results.

Lower rates changed the Strip result

In its October 28 earnings release, MGM reported $622 million in Strip room revenue for the quarter ended September 30, compared with $660 million a year earlier. Revenue per available room fell 8%, from $210 to $193. The company attributed pressure on results to lower room rates.

Strip resort revenue as a whole declined 2% to about $2 billion. Segment Adjusted EBITDAR fell 12%, to $531 million from $601 million. Those figures cover different scopes: room revenue describes accommodation, while the segment total includes other resort activities.

Casino revenue on the Strip actually rose 8%, to $488 million. It would therefore be inaccurate to describe every part of the Las Vegas business as shrinking. The room-rate weakness and gaming growth sit inside the same resort result.

Regional comparisons need the disposed property removed

Regional Operations reported revenue of $883 million against $957 million, an 8% decline. On MGM’s same-store comparison, however, the previous-year base is $873 million and revenue rose 1%.

The release explains that the same-store adjustment excludes MGM Northfield Park, disposed of on April 21, 2026, for the applicable periods. The reported decline and the same-store increase answer different questions. One compares the businesses reported in each period; the other adjusts for the property that left the portfolio.

There is still a weaker earnings result on the adjusted scope. Same-store Segment Adjusted EBITDAR declined 7%, from $260 million to $243 million. A small increase in comparable revenue therefore did not translate into higher comparable segment earnings.

Digital growth is not the group’s bottom line

MGM Digital revenue increased 6% to $184 million, while its Segment Adjusted EBITDAR loss narrowed to $4 million from $23 million. MGM says that segment contains LeoVegas and other consolidated interactive-gaming subsidiaries, and excludes the BetMGM North America venture.

That matters when reading our separate BetMGM quarterly analysis. The BetMGM venture and MGM Digital are not interchangeable names for one set of online results.

For the consolidated group, revenue was about $4.2 billion, down 1%. The net loss attributable to MGM narrowed to $17 million from $285 million, while Consolidated Adjusted EBITDA fell from $506 million to $403 million. A smaller net loss and a lower adjusted operating measure can occur together because they include different items.

Read the quarter in that order: the hotel-rate change, the property scope, then the measure of earnings. It gives a clearer account of the business than treating every improvement as profit growth or every revenue decline as a loss of customers.