MGM Mirage, Diaoyutai State Guesthouse Ink First Deal

TIANJIN, CHINA-Sixteen months after announcing their partnership, MGM Mirage Inc. and Diaoyutai State Guesthouse have their first project, a high-rise hotel and condominium tower in Tianjin, a large port city in northern coastal China. The duo said Wednesday morning it has executed development and management services agreements with Sinosteel International Plaza Co. Ltd. for the project, which also will include an office tower.

The hotel and condominium tower will have 88 floors and the office building will be a mid-rise structure. The lower floors of the hotel tower will house a 350-key hotel to be called MGM Grand Tianjin. The upper floors will house a 50-suite Skylofts at MGM Grand and a 60-unit MGM Grand luxury condominium offering. Amenities will include a spa and a restaurant. The towers were designed by MAD, a Beijing-based architecture firm.

Tianjin, home to 10 million people, is a gateway city to Beijing. Groundbreaking for the first phase of Sinosteel International Plaza is expected later this month. The development is considered a cornerstone of the Xiangluo Bay Project in Binhai New District, a major development area in Tianjin.

MGM Grand Tianjin is the first MGM-Diaoyutai project since the two announced their intention to develop hotels together in December 2006. The duo says it plans to manage branded luxury hotels and resorts in major markets across China.

As part of the effort, MGM Mirage last spring formed a new subsidiary, MGM Mirage Hospitality. The new division is being overseen by Gamal Aziz, who also is president and COO of MGM Mirage Las Vegas. In addition to its partnership with Diaoyutai State Guesthouse MGM Mirage formed a similar partnership with the Abu Dhabi government’s Mubadala Development Co.