Blending capital, opportunity
MGM Resorts International and the Hakkasan Group have formed MGM Hakkasan Hospitality, a joint venture to develop luxury hotels around the world.
The group will design, develop and manage nongaming hotels, resorts and residences under the Bellagio, Hakkasan, MGM Grand and Skylofts brands. The partners have their eye on resort destinations like New York, Beverly Hills and London, according to a news release from the companies.
MGM Hakkasan Hospitality evolved out of a partnership on the $100 million Hakkasan nightclub at MGM Grand in Las Vegas, which opened in 2013.
“Growing that relationship to form MGM Hakkasan Hospitality provides us both with access to capital as well as the opportunity to join their internationally renowned lifestyle brand with iconic brands such as Bellagio and MGM Grand as we seek to create resort destinations and lifestyle experiences around the globe,” said Jim Murren, chairman and CEO of MGM Resorts International.
“While hotel and resort projects have been part of our business plan for some time, it was crucial for us to find the best possible partner that could bring a wealth of experience and skill to the development and operation of branded products, and we believe there is no better choice than MGM Resorts International,” said Khadem Al Qubaisi, chairman of Hakkasan Group.
Projects currently under development by MGM and Hakkasan will be part of the joint venture, including MGM projects in North and South America, the Middle East, and Asia, and Hakkasan projects in Abu Dhabi and Dubai.
Hakkasan Group CEO Neil Moffitt will become CEO of MGM Hakkasan Hospitality. MGM Hospitality COO Michael Evans will be COO of the newly formed company.
“With existing projects already in the pipeline, a strong operational infrastructure and access to capital resources, MGM Hakkasan Hospitality will have more exposure to greater opportunities, improve the utilization of its resources and be more efficient in its operations,” Moffitt said.
