MGM Resorts International Expands Footprint with New Hotel in China

MGM Resorts International expanding its footprint

MGM Resorts International Expands Footprint with New Hotel in China

MGM Resorts International, the prominent Las Vegas-based casino operator, is continuing its international expansion with the recent opening of MGM Shenzhen, a luxurious beachside hotel in the Yantian District of China. Overlooking Mirs Bay on the northern side of the Hong Kong Peninsula, this new property marks a significant addition to MGM’s growing portfolio in the region.

MGM Shenzhen: A New Benchmark in Luxury

MGM Shenzhen offers 321 lavish guestrooms and suites, each providing stunning sea views. The resort features multiple dining options, meeting and event spaces, a theater showcasing a Cirque du Soleil-like production called the M Show, a kids club, indoor and outdoor heated swimming pools, and a comprehensive spa and fitness center.

This development is a joint venture between Diaoyutai MGM Hospitality, co-owned by China’s Diaoyutai State Guesthouse and MGM Resorts International. Despite the prohibition on marketing gambling activities on the mainland, MGM Shenzhen aims to provide a luxurious experience that aligns with MGM’s global brand reputation.

Navigating Mainland Challenges

Though MGM Shenzhen is only about 50 air miles from Macau, traveling between these locations presents logistical challenges. Without access to the Hong Kong-Zhuhai-Macau Bridge, the drive can take up to three hours, requiring a lengthy commute around the Pearl River.

Mainland Expansion Strategy

Through its subsidiary MGM China Holdings, MGM Resorts holds one of six casino licenses in Macau. Macau remains the only Chinese territory where casino gambling is legally permitted, making it a critical hub for MGM’s gaming operations.

MGM’s brand is well-recognized not only in Macau but also on the mainland. With the addition of MGM Shenzhen, Diaoyutai MGM Hospitality now operates six MGM-branded hotels in mainland China. Other properties include MGM Grand Saya, Mhub by MGM Nanjing Jiangning, MGM Qingdao, MGM Shanghai West Bund, and Bellagio Shanghai, which echoes the iconic Las Vegas Bellagio.

Future Projects and Commitments

In March, MGM announced plans for Mirage by MGM Shanghai, a boutique hotel with 205 rooms set to open in 2027. This new venture will be housed within one of two commercial and leisure towers developed by Tishman Speyer, further expanding MGM’s luxury footprint in China.

MGM Resorts retains the Mirage brand despite selling the operating rights to the Mirage property on the Las Vegas Strip to the Seminole Tribe in December 2022 for nearly $1.1 billion. The Seminole Tribe is currently transforming the Mirage into a Hard Rock-themed destination.

Diaoyutai MGM Hospitality is also preparing to open new MGM-branded hotels in Wuhan, Hainan, and Yalong Bay, Sanya, enhancing its portfolio and reinforcing its commitment to luxury hospitality in China.

Commitment to Macau

MGM China Holdings, distinct from Diaoyutai MGM Hospitality, fully owns two properties in Macau: MGM Macau and MGM Cotai. Last month, MGM China announced that its $1.9 billion nongaming investment commitment, made in late 2022 for a 10-year gaming license extension, would focus on wellness and hotel expansion. Currently, MGM China’s properties offer around 2,000 rooms, the fewest among Macau’s six casino licensees, highlighting a strategic area for growth.

Conclusion

MGM Resorts International’s ongoing expansion in China underscores its strategic vision to enhance its global presence while adapting to local market conditions. With the opening of MGM Shenzhen and plans for additional properties, MGM continues to solidify its position as a leading luxury hospitality and gaming brand worldwide.