New Ventures in Hotel Management
According to The Wall Street Journal, it traditionally took major hotel companies about four years to establish a presence on the lucrative Las Vegas Strip. However, MGM Mirage, one of the Strip’s largest gambling houses, is now venturing into the hotel industry with plans to expand globally.
Hotel Management Deals and Future Plans
MGM Mirage has signed eight hotel-management agreements with developers and is in discussions with ten additional parties to open luxury hotels without casinos. The signed agreements include locations in Dubai, the Egyptian Red Sea resort of Sharm El Sheikh, and the renowned Bellagio, famous for its dancing fountains and appearances in the Ocean’s Eleven movie.
Future MGM properties are also planned for Cairo, Vietnam, and Tianjin, China. The MGM Grand will feature locations such as Skylofts and luxury boutiques.
Strategic Goals and Financial Expectations
In 2007, MGM Mirage established MGM Mirage Hospitality, led by Gamal Aziz, with the goal of leveraging their brands without substantial capital investment. The company expects to generate approximately $100 million annually from hotel operations by 2014, all without direct investment in hotel development.
