[photopress:LasvegasMGM.jpg,full,alignright]Hotel and casino company MGM Mirage has said it is in advanced talks with Diaoyutai State Guesthouse in Beijing to create a joint venture to develop non-gaming luxury hotels and resorts globally.
MGM Mirage and Diaoyutai would start initially with China. A finalized agreement is expected in the first quarter of 2007.
This is the second such announcement this month by MGM Mirage, the No. 2 U.S. gambling company. The company said last week it was in discussions to create a joint venture with Abu Dhabi’s Mubadala Development to develop non-gaming luxury hotels globally.
Bear Stearns analyst Joseph Greff wrote in a research note, said, ‘We believe these initiatives … are a smart way for MGM to meaningfully enhance its brand in mainland China and cross market mainland Chinese gaming and resort patrons into LV Strip.’
Bit difficult to understand but basically he is saying this is a good way for MGM to get its name in lights in China. Then he is saying that it will be a good way to get Chinese gamblers into the Las Vegas strip which was not mentioned anywhere whatsoever in the release from MGM. Perhaps it does not want to emphasize that a prime reason for opening in China is to get at Chinese gamblers.