MGM Resorts has big plans for next year’s Formula One Las Vegas Grand Prix.
Nevada’s largest employer is chomping at the bit at the possibilities of the first F1 race in Las Vegas since 1982.
“The retail potential and the upside of that are substantive,” Bill Hornbuckle, MGM Resorts CEO, said in the company’s Aug. 3 earnings call.
Hornbuckle said room rates during the race slated for a yet-to-be-announced weekend in November 2023 will be three times or more higher than normal.
On Tuesday, MGM Resorts tweeted a link for parties to sign up to be notified when room packages for F1 weekend are available for purchase.
Hornbuckle noted the potential for big-money packages during the earnings call this month.
“There are packages that sell for that event at $100,000 retail,” Hornbuckle said.
MGM will have an abundance of race packages to offer, with the company planning to buy millions of dollars worth of tickets.
“Our ticket buy alone will be about $20-$25 million,” Hornbuckle said. “We have access to those tickets and then the ability to charge as we want and package as we want. … I’m pretty excited about that one.”
The Las Vegas Convention and Visitors Authority plans to spend $19.5 million over three years to sponsor F1 races in 2023, 2024 and 2025.
During the race announcement in February, Gov. Steve Sisolak said about 170,000 visitors are expected to travel to Las Vegas for the event. The indirect economic impact of the race is projected to be in the $1 billion range.
The race is set to occur on a 3.8-mile track in and around the resort corridor. The 50-lap race will occur under the bright lights of the Strip at night. Drivers are expected to reach speeds of over 212 mph during the race.