[photopress:mgm_mirage_1.jpg,full,alignright]Stepping away from the industry that made them famous (OK, films made them famous first, now it is gambling) officials from the MGM Mirage have announced plans to build a non-gaming hotel in China.
MGM Mirage Hospitality plans to provide development and management services for a plaza project in Tianjin, China.
The project would include two towers, with a luxury hotel to be named MGM Grand Tianjin, condominiums and spa, office and restaurant facilities. Officials say it will not, definitely not, be a casino.
Diaoyutai State Guesthouse is the Chinese partner in the joint venture.
The suggestion is the deal could generate about $200 million in yearly cash flow for MGM Mirage.
Which may lead to MGM Mirage getting serious about the non-gambling side of hotel keeping and build-up the hospitality branch so that eventually it could be separated to separate into its own public company.
But, but, but. The profits from gambling are immense.
[photopress:mgm_mirage_2.jpg,full,alignleft]While the government has it clamped down it will not happen. But MGM Mirage management will be tempted every second of the day to present to the government plans that would allow gambling. Perhaps initially for visitors to China only. Then, a case could be presented to add more.
MGM Grand currently operates casino and hotel projects in the former Portuguese colony of Macau, which reverted to Chinese sovereignty in 1999. Macau is the only place in China where gambling is legal.
Source: Fox5News and MarketWatch