The LVCC is the third largest convention center in the country and a shining example of the route Las Vegas is taking to move away from a primary focus on gaming revenue. In fact, the portion of city revenue that comes from gambling is at a historic low of just 34%.
MGM is undergoing its own convention space overhaul. Its Mandalay Bay Convention Center, already offering 1.7 million square feet of meeting space, will get an additional 350,000 square feet to rival the LVCC as the biggest space in Vegas. The upgraded convention center is expected to open by early 2016.
Breaking the 40 million visitor mark has been a goal of ours, and reaching beyond that to more than 41 million is a testament to the hard work of our resort partners and everyone who works in the industry. Tourism drives our local economy, and the growth in recent years is a positive sign for both the industry and our community. With more than $9 billion in recent and planned developments, we are poised to continue that growth and march toward our next goal of 45 million visitors in the coming years.
Another reason to be bullish on MGM Resorts is its hotel revenue growth in Las Vegas. MGM owns and operates approximately 27% of all hotel rooms in the city. The record number of visitors, as well as an increased number of convention and business guests, is driving this segment higher. In 2014, MGM saw revenue per available room increase 8% at its Las Vegas properties.
So even though the Las Vegas Convention Center is owned and operated by the LVCVA, its tech overhaul is another sign of how non-gaming segments are driving growth in the city. MGM Resorts is making the strongest bet on this growth and to back it up, has the most promising hotel segment growth as well.
Bradley Seth McNew has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.