Tuesday, April 15, 2014 | 9:57 a.m.
MGM Resorts International and Hakkasan Group are partnering in a joint-venture to develop luxury hotels around the globe.
Formation of MGM Hakkasan Hospitality was announced today in a news release from MGM and Hakkasan.
The newly formed group will design, develop and manage nongaming hotels, resorts and residences under the Bellagio, Hakkasan, MGM Grand and SKYLOFTS brands.
Targeted locations will be international gateway cities and prime resort destinations, among them New York, Beverly Hills and London, according to the news release.
MGM Hakkasan Hospitality is an extension of the partnership that brought about the 2013 opening of the $100 million megaclub Hakkasan at MGM Grand.
“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.
All of the hotel and resort projects currently under development by MGM and Hakkasan will be contributed to the joint venture, including MGM projects in the Americas, the Middle East, and Asia, and Hakkasan projects in Abu Dhabi and Dubai.
Hakkasan Group CEO Neil Moffitt will lead the joint venture, as he becomes CEO of MGM Hakkasan Hospitality. MGM Hospitality COO Michael Evans will be COO of the newly formed company. The company will operate under a combined board and governance.
“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.