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MGM, China's Diaoyutai in Hotel Projects Talks

December 13, 2006 By: Camie Foster Travel Agent

MGM Mirage says it is in advanced discussions with the Diaoyutai State Guesthouse about forming a strategic joint venture to develop luxury non-gaming hotels and resorts. The two hope to complete a definitive joint-venture agreement during the first quarter of 2007. They initially want to target locations within China and subsequently expand globally. The joint venture likely will create a brand identity that associates "MGM Grand" with "Diaoyutai." The Diaoyutai State Guesthouse is located in Beijing; MGM's presence in Asia now comprises a 50 percent stake in the MGM Grand Macau, a hotel-casino project under construction in Macau.

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