MGM Gets a Few New Business Partners
Jun 15th 2013 10:00AM
Updated Jun 15th 2013 12:30PM
In the following video, Fool contributor Matt Thalman discusses why he believes MGM Resorts' recent move to partner with both Southwest Airlines and Hyatt Hotels will greatly benefit not only MGM but also its two new partners.
The companies will now all have larger loyalty customer bases, and with few to no additional costs associated with acquiring these new customers, their loyalty rewards will be more appealing and rewarding -- as they should be -- and help Las Vegas attract more tourists with more money burning holes in their pockets.
When MGM Resorts began constructing the CityCenter in Las Vegas, it was an audacious plan that seemed like a sure bet, with its prime location in the center of the Strip. But Las Vegas hit a rough patch during the Great Recession and has yet to fully recover, so MGM has since turned its attention to a new market in Macau. This Chinese gaming enclave now holds the key to the company's future, and a new resort on Cotai may relieve the company from crushing debt. For expert analysis on whether this former high-flying stock can regain its form on the back of a growing presence in Asia, you're invited to check out The Motley Fool's new premium report on MGM Resorts. Simply click here now to claim your copy today.
The article MGM Gets a Few New Business Partners originally appeared on Fool.com.Fool contributor Matt Thalman owns shares of MGM Resorts International. The Motley Fool recommends Southwest Airlines. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513 . Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.