Last June, MGM changed its name from MGM Mirage to MGM Resorts International to reflect the company’s new strategy to emphasize its non-gaming business globally. First up on the agenda? An aggressive expansion strategy to make MGM Resorts’ presence felt in China.
Hoping to tap the increasing demand for luxury travel in China, the Las Vegas entertainment and hospitality giant MGM Resorts International (MGM) plans to open up to 30 hotels in China over the next three to four years.
Beijing, Sanya, Tianjin, Chengdu and Shanghai are all scheduled to open MGM hotels from 2011 to 2014 through a partnership with Diaoyutai State Guesthouse.
MGM Hospitality, the company’s luxury hotels unit, plans to open two luxury properties in Beijing and Sanya of Hainan Province this year.
The Diaoyutai Hotel Beijing, Lama Temple is slated to open in August of 2011. Located in the up-and-coming bohemian neighborhood near the Yonghe, in the northeast sector of the old city, this hotel is a combination of urban spa, art exhibition center, and a world-class hospitality experience. Given its location, the company hopes the hotel will become a cultural landmark for the city.
The hotel delicately balances a contemporary Chinese design with European luxury and style. “It’s small, like a boutique hotel, but very unique, very high-end, only targeting affluent people with a holistic view of life of physical fitness, of cultural awareness, of art and of humanity,” said James J. Murren, MGM Resorts International Chairman and CEO.
The MGM Grand Sanya, Hainan Island, is scheduled to open at the end of the year. Located on the warm, sandy, luxurious beaches of Yalong Bay, the MGM Grand Sanya will have 665 guest rooms, 50 suites and six exclusive villas on the beachfront, and will offer a creative range of entertainment and dining concepts, a spa and swimming pools, lush landscapes, and gorgeous views of the South China Sea.
According to a recent report from Credit Agricole’s CLSA, demand for luxury goods and travel in China may rise by 25 percent to account for 44 percent of the world’s total by 2020.
This week, MGM Resorts International announced that its joint venture in China, MGM China Holdings Ltd, will seek to raise nearly $1.5 billion in an initial public stock offering on the Hong Kong Stock Exchange.
After the IPO, MGM Resorts International would hold 51 percent of the Chinese company and its partner Pansy Ho would hold 29 percent.
“It will result in us controlling one of the finest — and certainly the fastest-growing assets — in our portfolio post-IPO when we own 51 percent of MGM China. It also strengthens our bond with Pansy Ho, which we like, and we’re doing more with her in China and as part of this deal she’s investing a significant amount of her money into MGM Resorts,” said Murren.
photo credit: mgm hospitality