MGM Announces Two Strip Property Developments, Penn Opens New M Resort Tower

Realty Income committed $800 million to CityCenter’s ARIA Resort & Casino and Vdara Hotel & Spa this week. MGM Resorts also revealed NoMad Las Vegas will become The Reserve at Park MGM. The CityCenter deal is structured as a joint venture with Blackstone Real Estate, which will retain full equity ownership. It follows the companies’ 2023 Bellagio partnership and projects initial yields of 7.4% with potent increases after 2029.

MGM retains operational control of both properties. Realty Income CEO Sumit Roy stated, “We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip’s iconic properties.”

Investor Confidence Against Tourism Slump

CityCenter, a cornerstone of Las Vegas Strip value since 2009, secured capital as Realty Income and Blackstone touted the enduring allure of “iconic Las Vegas real estate.” The deal underscores investor optimism despite October marking the tenth straight monthly decline in visitors. Blackstone’s Jacob Warner called the partnership’s expansion a “terrific outcome”, noting it returns capital while retaining ownership of the premier resort.

Meanwhile, Strip casinos defied tourism trends in October with Clark County gaming revenue rising 5% to $1.17 billion, with the Strip contributing $748.9 million, fueled by baccarat and high-spending clientele.

Revival Rebrand

MGM Resorts will entirely change NoMad Las Vegas to The Reserve at Park MGM by December 17, with plans to join Marriott Bonvoy’s Autograph Collection in early 2026. The move expands the MGM Collection with Marriott Bonvoy partnership, which now spans 13 Strip properties, including ARIA and Bellagio.

Despite a 7% year-on-year decline in MGM Strip properties’ revenue to $2 billion in Q3 2025, CEO Bill Hornbuckle acknowledged missteps, including overpriced items like a $12 coffee. CFO Jonathan Halkyard noted improving room rates and strong group demand through year-end.

PENN Expansion

As MGM’s plans to revamp its Strip properties, PENN Entertainment unveiled its second hotel tower at Las Vegas’ M Resort Spa Casino, completing the $150 million project ahead of schedule. The expansion increases room capacity to 765 and adds the 15,000 sq ft Montese Ballroom, part of a 100,000 sq ft events complex south of the Strip. It also created 120 jobs.

The grand opening today is scheduled to feature a drone show and live performance. CEO Jay Snowden called the tower a testament to PENN’s “commitment to evolving the guest experience.” The project is funded through Gaming and Leisure Properties at a 7.79% capitalization rate.