[photopress:Diaoyutai_State_Guesthouse.jpg,full,alignright]It sounds an odd arrangement but MGM Mirage has signed a definitive agreement with the Diaoyutai State Guesthouse in Beijing. The agreement is about a strategic relationship to pursue non-gaming business opportunities.
That non-gaming bit is important. There is no suggestion here of getting involved in the Macanese rat race although MGM Mirage is already there. The two parties intend to create a joint venture to develop luxury non-gaming hotels and resorts around the world but, in the first instance, in China.
Feng, Shusen, Director General of the China Diaoyutai State Guesthouse, said, ‘The signing of our agreement with MGM Mirage marks the beginning of a strong partnership. Together, we will develop luxury non-gaming hotels and resorts, using the strength of our brands and our dedication to providing the finest in hospitality and service.’
Terry Lanni, Chairman and Chief Executive Officer of MGM Mirage said much the same. One thing he said sounded a bit odd: ‘The ‘Diaoyutai’ brand is world-renowned.’ If he thinks that he has been sadly misinformed.
MGM Mirage already owns and operates 22 properties in Nevada, Mississippi and Michigan. But it also has a major new development under construction in Macau S.A.R. The company has a 50% interest in MGM Grand Macau, a hotel-casino resort currently under construction. Announcing the new agreement, the release said, ‘MGM Mirage supports responsible gaming.’ This sounds like a total contradiction in terms.
China Diaoyutai State Guesthouse, in the Fishing Terrace complex in Beijing, is a venue for important diplomatic activities of the leaders of China. It has received more than 1,000 Heads of State and government since its inauguration nearly 50 years ago.
Thus entering into an agreement with an American organization which owns half a hotel-casino in Macau is somewhat odd.
Source: PR Newswire