MGM Mirage forms subsidiary to develop luxury hotels

MGM Mirage has formed a subsidiary called MGM Mirage Hospitality that will focus specifically on developing a new luxury hotel brand. The subsidiary also will develop MGM Mirages existing brands, which include the Bellagio and Mirage, in the U.S. and overseas.

In announcing the subsidiary, MGM Mirage said Gamal Aziz, president and COO of the MGM Grand Las Vegas, will also serve as president and CEO of MGM Mirage Hospitality, which has already begun work on two projects previously announced by MGM Mirage.

Those projects include a partnership with Mubadala Development Co. to develop non-gaming hotels in Dubai, among other places, as well as a similar agreement with Diaoyutai State Guesthouse in Beijing.

MGM Mirage Hospitality will also spearhead another joint venture that aims to develop properties with the Mashantucket Pequot Tribal Nation which owns the Foxwoods Resort Casino in Ledyard, Conn.

"Our company is very optimistic about the growth potential of our new international relationships. We hold in our company portfolio some of the best-known, most highly regarded luxury hotel brands in the world," said Terry Lanni, Chairman and CEO of MGM Mirage, in a statement. "We can also benefit from the enormous wealth of development experience our team can bring to new concepts. We feel confident that experienced world travelers will be eager to experience our trademark hospitality in world cities beyond our existing gaming destinations."

Meanwhile, MGM Mirage is busy with several other projects, including considering a proposal by Tracinda Corp., its majority shareholder, to buy both the Bellagio Hotel and Project City Center, a multi-billion dollar, mixed-use urban development now in development on the Las Vegas Strip.

MGM Mirage is also involved in several other joint ventures including one that intends to develop a 166-acre mixed-use property 25 miles south of Las Vegas, close to the planned Ivanpah Valley Airport, and another $160 million mixed-use project now under development on an 80-acre site on the southeast corner of Las Vegas Boulevard.

To contact the reporter who wrote this article, send e-mail to Michael Milligan at [email protected].

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