The deal could generate about USD 200 million in yearly cash flow
MGM Mirage has announced plans for a joint venture on a non-gambling hotel in mainland China. 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. The Chinese partner in the deal is Diaoyutai State Guesthouse.
Analyst Bill Lerner of Deutsche Bank says in a note to investors that the deal could generate about USD 200 million in yearly cash flow for MGM Mirage.
Lerner says the company’s hospitality unit could eventually be spun off to a separate public company.