SAN FRANCISCO -- Shares of MGM Resorts International rose Monday after a Sterne, Agee & Leach analyst said that the casino company believes its revenue per available room on the Las Vegas Strip is climbing in the third and fourth quarters compared with a year ago, and indicated it currently has more hotel room nights booked for the first quarter than it did at this time last year.
MGM Resorts shares rose 46 cents, or 3.8 percent, to $12.61 in afternoon trading. In a note to clients, Sterne Agee analyst David Bain said that MGM management said in meetings that, even without adding in resort fees, it thinks its revenue per available room will climb in the second half of 2010. Still, the company noted that fourth-quarter results include much traffic in the last week of the period -- a week Bain thinks comprises 15 percent of its results for the quarter and that MGM has "little visibility on."
The analyst also said that it has 30 percent more room nights booked for the first quarter of next year than it did at the same time in 2009, and 40 percent more room nights booked for convention and group events.
Bain added that McCarran International Airport in Las Vegas reported 2 percent year-over-year growth in passengers for October, which marks the airport's third rise in 36 months.
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