MGM Resorts International, the Las Vegas casino operator part-owned by Dubai World, may open as many as 30 hotels in China in the next three to four years to tap increasing demand for luxury travel in the country.
MGM Hospitality, a unit of the company that focuses on luxury hotels, is currently building 20 hotels in the Asia- Pacific region, with nine of those in Chinese cities including Shanghai and Ningbo, said Michael Sagild, managing director for Asia-Pacific development at the unit.
Demand for luxury goods and travel in China may rise by as much as 25 percent to account for 44 percent of the world’s total by 2020, Credit Agricole’s CLSA said in a February report.
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MGM Hospitality plans to open its first hotel in the country in Sanya, Hainan Island, in the fourth quarter, Sagild said.
“If I had spoken to you nine months ago I would have said we may get to about 15 hotels in China in the next three to four years,” Sagild said in an interview in Hong Kong, where he’s based.
“Today, it may be 30 because in the last four months there’s been an absolute rush on brands. There’s still a lot of developers who’re interested” in opening hotels.
State-backed conglomerate Dubai World bought a 9.5 percent stake in MGM in 2007, in a deal worth around $2.4bn. The company also put up half of the financing cost on the $8.5bn CityCenter project, the largest casino on the Las Vegas strip, in a 50/50 joint venture.
Last year the flagship firm was reported to be mulling the sale of its stake in a bid to reduce net debt.
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