MGM China just doubled the branding fee it pays back to its own parent company, adding $44 million a year to the expense line while EBITDAR drops 15%. If that structure sounds familiar, it should... it's the same fee creep every franchisee in America lives with.
MGM China posted HK$17.4 billion in record first-half revenue while adjusted EBITDA actually declined... a pattern every operator who's ever been told to "grow the top line" should recognize immediately.
MGM's Q2 revenue topped $4.5 billion and adjusted EPS cleared consensus, but Strip hotel revenue fell 2% and ADR dropped 4% to $242. For a company leaning into luxury positioning, that's a trend line that deserves more scrutiny than the earnings beat.
People Inc. is offering $18 billion for MGM while Fertitta is taking Caesars private for $17.6 billion, and both deals are built on the same thesis: public markets have been punishing these companies for years while the buildings kept printing money. If you operate a hotel inside either portfolio, the math behind your management contract is about to get very different.
Diller's People Inc. bid values MGM at $18 billion while insiders are already heading for the exits. When the stock trades above your offer price and an analyst downgrades you to Hold because the deal math doesn't pencil, that's the market telling you something you should already know.
Pansy Ho sold her entire 1.2% stake in MGM Resorts for $140 million right as a takeover bid inflated the stock price. The timing tells you everything about how the people closest to the deal actually feel about where this company is headed.
MGM posted record Q1 revenue while EBITDA fell nearly 9% and EPS missed by 12.5%, which is a textbook case of a company growing its top line while the owner's actual return moves in the wrong direction.
MGM China grew revenue 9% and somehow got less profitable, because the parent company doubled the branding fee to 3.5% of net revenue starting January 1. If you've ever wondered what it looks like when a brand extracts value from an operator in real time, this is your case study.
