While MGM Mirage will forever be associated closely with the gambling industry, many people will be surprised to learn that the group is building a non-gambling hotel in China. MGM Mirage Hospitality will be providing management services to the plaza venture and retain a very much hands on future strategy to expansion in the region. So is this a change of direction or a way to enter China via the back door?
As the casino industry continues to take something of a breather from the frenetic expansions phase seen over the last few years there are some who believe that hotel branding ventures may offer some short term relief and much need cash flow. The Chinese venture is expected to bring in cash flow of around $200 million a year, split between Chinese partner Diaoyutai State Guesthouse and MGM.
However, overall there seems to be a difference of opinion as to whether MGM will use the Chinese venture, and other similar non-gambling projects, as a way to enter markets and then introduce gambling facilities. As the name is so strongly associated with gambling it seems very much only a matter of time before public opinion and expectations turn towards casino and gambling services.
While MGM Mirage will forever be associated closely with the gambling industry, many people will be surprised to learn that the group is building a non-gambling hotel in China. MGM Mirage Hospitality will be providing management services to the plaza venture and retain a very much hands on future strategy to expansion in the region. So is this a change of direction or a way to enter China via the back door?