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MGM Resorts to Sell MGM Northfield Park Operations for $546M
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Key Takeaways
MGM Resorts will sell its MGM Northfield Park operations to Clairvest Group funds for $546M in cash.
The sale will yield about $420M in net proceeds and cut MGM's annual rent obligations by $54M.
The move aligns with MGM's focus on digital growth, international expansion and portfolio optimization.
MGM Resorts International (MGM - Free Report) has announced an agreement to divest the operations of MGM Northfield Park to private equity funds managed by Clairvest Group Inc. in a deal valued at $546 million in cash. The sale price reflects a multiple of approximately 6.6x adjusted EBITDA for the 12 months ended June 30, 2025.
The transaction is expected to generate approximately $420 million in net cash proceeds for MGM Resorts after accounting for taxes and transaction-related costs. As part of the deal, MGM’s master lease agreement with VICI Properties, which currently includes Northfield Park, will be revised to reduce annual rent obligations by $54 million, further strengthening its balance sheet.
MGM Northfield Park has been a strong contributor, reporting adjusted EBITDAR of about $137 million over the past year. The property, originally acquired by MGM Growth Properties in 2018 under the Hard Rock Rocksino brand, was later purchased by MGM Resorts in 2019 for $275 million and rebranded as MGM Northfield Park. The announced sale, therefore, represents a meaningful uplift over MGM’s original investment.
Commenting on the decision, CEO and president Bill Hornbuckle highlighted MGM Resorts’ strategic focus on expanding its digital operations, international growth initiatives and ongoing investments in integrated resorts across the United States. CFO Jonathan Halkyard emphasized that the divestiture showcases MGM’s ability to unlock premium transaction multiples relative to its current valuation, while also underscoring the disciplined financial management.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the first half of 2026. Jefferies LLC and SMBC Nikko Securities America, Inc. advised MGM Resorts on the sale, while Weil, Gotshal & Manges LLP acted as legal counsel.
For MGM Resorts, the sale of Northfield Park is not just about monetizing an asset at an attractive valuation — it reflects a broader strategy of portfolio optimization. By reallocating capital toward high-growth opportunities in digital platforms and international markets, MGM continues to reinforce its positioning as a leading global gaming and entertainment operator.
MGM Stock’s Price Performance
Shares of MGM have gained 9.6% in the past six months compared with the industry’s rise of 35.1%. The company benefits from solid performances at MGM China and robust contributions from regional properties. Also, momentum at BetMGM and strong demand from its Marriott partnership supported results.
Image Source: Zacks Investment Research
However, the company has been witnessing elevated operating expenses for some time. In the second quarter of 2025, MGM reported increased expenses concerning the casino, and food and beverage. During this period, casino expenses totaled $1.33 billion compared with $1.22 billion reported in the prior-year period. The company is cautious of cost overruns, which are likely to impact the bottom line to some extent in 2025. It remains cautious of inflationary pressures.
MGM’s Zacks Rank & Key Picks
Currently, MGM Resorts carries a Zacks Rank #3 (Hold).
The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. NCLH stock has declined 4.2% year to date. The Zacks Consensus Estimate for NCLH’s 2025 sales and earnings per share (EPS) indicates growth of 6% and 13.2%, respectively, from the year-ago period’s levels.
Carnival sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 387.2%, on average. Carnival stock has skyrocketed 56.8% in the past six months.
The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS indicates growth of 21.2% and 220.8%, respectively, from the prior-year levels.
Boyd Gaming carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 45.3%, on average. Boyd Gaming stock has gained 26.9% in the past six months.
The Zacks Consensus Estimate for Boyd Gaming’s 2025 sales and EPS indicate growth of 9% and 21.4%, respectively, from the prior-year levels.
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MGM Resorts to Sell MGM Northfield Park Operations for $546M
Key Takeaways
MGM Resorts International (MGM - Free Report) has announced an agreement to divest the operations of MGM Northfield Park to private equity funds managed by Clairvest Group Inc. in a deal valued at $546 million in cash. The sale price reflects a multiple of approximately 6.6x adjusted EBITDA for the 12 months ended June 30, 2025.
The transaction is expected to generate approximately $420 million in net cash proceeds for MGM Resorts after accounting for taxes and transaction-related costs. As part of the deal, MGM’s master lease agreement with VICI Properties, which currently includes Northfield Park, will be revised to reduce annual rent obligations by $54 million, further strengthening its balance sheet.
MGM Northfield Park has been a strong contributor, reporting adjusted EBITDAR of about $137 million over the past year. The property, originally acquired by MGM Growth Properties in 2018 under the Hard Rock Rocksino brand, was later purchased by MGM Resorts in 2019 for $275 million and rebranded as MGM Northfield Park. The announced sale, therefore, represents a meaningful uplift over MGM’s original investment.
Commenting on the decision, CEO and president Bill Hornbuckle highlighted MGM Resorts’ strategic focus on expanding its digital operations, international growth initiatives and ongoing investments in integrated resorts across the United States. CFO Jonathan Halkyard emphasized that the divestiture showcases MGM’s ability to unlock premium transaction multiples relative to its current valuation, while also underscoring the disciplined financial management.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the first half of 2026. Jefferies LLC and SMBC Nikko Securities America, Inc. advised MGM Resorts on the sale, while Weil, Gotshal & Manges LLP acted as legal counsel.
For MGM Resorts, the sale of Northfield Park is not just about monetizing an asset at an attractive valuation — it reflects a broader strategy of portfolio optimization. By reallocating capital toward high-growth opportunities in digital platforms and international markets, MGM continues to reinforce its positioning as a leading global gaming and entertainment operator.
MGM Stock’s Price Performance
Shares of MGM have gained 9.6% in the past six months compared with the industry’s rise of 35.1%. The company benefits from solid performances at MGM China and robust contributions from regional properties. Also, momentum at BetMGM and strong demand from its Marriott partnership supported results.
Image Source: Zacks Investment Research
However, the company has been witnessing elevated operating expenses for some time. In the second quarter of 2025, MGM reported increased expenses concerning the casino, and food and beverage. During this period, casino expenses totaled $1.33 billion compared with $1.22 billion reported in the prior-year period. The company is cautious of cost overruns, which are likely to impact the bottom line to some extent in 2025. It remains cautious of inflationary pressures.
MGM’s Zacks Rank & Key Picks
Currently, MGM Resorts carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Consumer Discretionary sector are Norwegian Cruise Line (NCLH - Free Report) , Carnival (CCL - Free Report) and Boyd Gaming (BYD - Free Report) .
Norwegian Cruise Line flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. NCLH stock has declined 4.2% year to date. The Zacks Consensus Estimate for NCLH’s 2025 sales and earnings per share (EPS) indicates growth of 6% and 13.2%, respectively, from the year-ago period’s levels.
Carnival sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 387.2%, on average. Carnival stock has skyrocketed 56.8% in the past six months.
The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS indicates growth of 21.2% and 220.8%, respectively, from the prior-year levels.
Boyd Gaming carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 45.3%, on average. Boyd Gaming stock has gained 26.9% in the past six months.
The Zacks Consensus Estimate for Boyd Gaming’s 2025 sales and EPS indicate growth of 9% and 21.4%, respectively, from the prior-year levels.