MGM Mirage will develop a luxury hotel property, free of gambling, in Tianjin, China, a move that is similar to the gambling company's pursuits in Connecticut and Abu Dhabi, and signals the likelihood that MGM Mirage will spin off its hospitality unit into a publicly traded company, as first reported by The Wall Street Journal.
The project, on China's northern coast, calls for two towers to be built in stages; the first, which will include 110 residential units, a 350-room hotel and a 50-suite Skylofts at MGM Grand, is scheduled to begin construction by the end of this month. The complex is being developed as part of a joint venture with China's Diaoyutai State Guesthouse, whereby MGM Mirage will retain the management contract.
"We believe this hospitality entity could ultimately be spun off in a separate publicly traded company and would expect many more deals like this one in geographies like Asia, the Middle East, Europe and northern Africa," Deutsche Bank AG gambling analyst Bill Lerner wrote in an investor note about the Tianjin announcement, as reported by The Journal.
MGM Mirage is currently developing a $3 billion gambling-free resort in Abu Dhabi and last month opened the MGM Grand at Foxwoods in Connecticut