By: Las Vegas Now Staff
MGM Mirage Inc. has announced plans for a joint venture on a non-gambling hotel in mainland China. The Las Vegas-based casino company says its hospitality arm, MGM Mirage Hospitality, plans to provide development and management services for the plaza project in Tianjin, China.
The mixed project would include two towers, with a luxury hotel to be named MGM Grand Tianjin, condominiums and spa, office and restaurant facilities.
Analyst Bill Lerner of Deutsche Bank said in a note to investors that the deal could generate about $200 million in yearly cash flow for MGM Mirage.
The Chinese partner in the deal is Diaoyutai State Guesthouse. Lerner says the deal could be one of many more in which MGM Mirage lends its brand and hotel expertise. He says the company's hospitality unit could eventually be spun off to a separate public company.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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