MGM and Diaoyutai State Guesthouse intend to create a jointventure to develop luxury non-gaming hotels and resorts around theworld under a new joint brand that associates "MGM Grand" with"Diaoyutai." The duo initially plans to target locations in thePeople's Republic of China. The parties hope to conclude adefinitive joint venture agreement in the first quarter of2007.

Earlier this month, MGM announced a non-gaming resortdevelopment partnership with the Abu Dhabi government's MubadalaDevelopment Co. The partnership has the same general internationaldevelopment goals as the one with Diaoyutai State Guesthouse andalso will develop a combined brand. The current difference is thatthe Abu Dhabi partnership plans to begin with projects in AbuDhabi, Las Vegas and the United Kingdom while the Diaoyutaipartnership will initially focus on the People's Republic ofChina.

An MGM executive could not be reached Wednesday for comment onwhether geographic markets are being divvyed up between the twopartnerships or whether the two new brands will compete against oneanother.