MGM, Marriott sign agreement for 1,500-room hotel

Monday, Dec. 22, 1997 | 11:33 a.m.

The two companies announced in June that they were negotiating the deal.

The 1,500-room high-rise will be on land just east of the 5,005-room MGM Grand Hotel on the Las Vegas Strip.

The companies are now negotiating a definitive agreement for a 500-room Ritz-Carlton Hotel, which was also announced and agreed to in principle in June.

"We are delighted to have reached this agreement which will bring another world-class facility to our resort property," J. Terrence Lanni, MGM Grand's chairman and chief executive officer, said Monday.

Lanni said the deal includes a marketing agreement which gives MGM access to Marriott's marketing and reservation system.

Marriott is the world's leading hospitality company with more than 4,900 operating units in the U.S. and 53 other countries and territories.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said the affiliation with MGM Grand "will increase our presence in one of the most dynamic marketplaces in the world."

Marriott also operates Residence Inn, Courtyard, Fairfield Inn and Marriott Suites properties here.

Construction of the Marriott is scheduled to begin in mid-1998 with completion expected by the end of 1999, according to Alex Yemenidjian, president and chief operating officer of MGM Grand.

Specific plans for the Ritz-Carlton will not be released until a definitive agreement is reached.

While the Marriott will be a non-gaming hotel, 30,000 square feet of casino space will be built by MGM Grand adjacent to the new hotel tower, bringing total casino capacity at the MGM Grand to more than 200,000 square feet.