Inside Asian Gaming

INSIDE ASIAN GAMING | March 2012 32 Feature baccarat tables in Vegas. The Bund, famous in the late 19th and early 20th centuries as a centre of Western commercial activity in theFar East, is enjoying a renaissance as a destination for business and leisure travellers throughout China and abroad, with attractions that include a glittering promenade along the Huangpu River, a tributary of the Yangtze. The financial arrangements that landed this prime real estate for MGM were not disclosed. But the location certainly is a coup for the joint venture the company has formed with the renowned Diaoyutai State Guesthouse to pepper China’s booming hotel market with MGM Grand, Bellagio and MGM Skylofts marquees and a testament to its success in cultivating ‘guanxi,’ a must for success in doing business in China, the term signifying connections with the powers that be—‘juice,’ as they’dcall it inVegas.TheShanghai partner providing the land, Suning Real Estate Group, is an arm of a conglomerate with a sizable share of the country’s massive retail electronics and home appliance markets and global ambitions of its own. Before the decade is out, Suning wants to add to an already hefty portfolio some 100 hotels and 50 mixed-used commercial, industrial and residential projects in first- and second-tier cities nationwide. As aggressive development strategies go, Suning’s speaks to a vision similar to MGM Resorts’, as CEO Jim Murren noted in a statement when the project was announced: “We believe relationships like this with Suning create new opportunities to expand our brand reach into this strategically vital marketplace.” Wealthy gamblers are of course an important part of the vision, but Murren & Co. have big eyes for an entire continent of increasingly affluent and mobile travellers. The Asia-Pacific region alone accounted for 22% of global tourism arrivals in 2011, according to the United Nations World TourismOrganization.Their share isexpected to grow four to six percentage points this year. Not surprisingly, MGM Hospitality, the company’s hotel development and management subsidiary, is mapping luxury resort projects from Beijing to Marrakech. Its most celebrated to date, MGM Grand Ho Tram, opens in phases beginning next year with the first of two five-star hotel towers (1,100 rooms and suites in all) and, significantly, Vietnam’s first casino. Also slated for a 2013 opening is an MGM Grand, sans gambling, in the Sinai resort of Sharm El-Sheikh. An MGM Grand Cairo, a Bellagio at Dubai Pearl, multibillion-dollar mixed- use development in the UAE, and in Abu Dhabi an MGM Grand with a number of Skylofts penthouse suites are scheduled for completion in 2014. Developments also are under way in India, in Mumbai, New Delhi and Jaipur. In Diaoyutai MGM has scored a partner without peer among Chinese hoteliers. The landmark State Guesthouse, a complex of lush gardens and luxury villas, was originally assembled in 1958 to accommodate heads of state arriving for celebrations surrounding the 10th anniversary of the Communist revolution. It was so appealing it was appropriated during the Cultural Revolution by Madame Mao as her personal residence and continued to function for nearly a half- century before it was opened to the paying public, as a favorite retreat of party hierarchy, provincial big shots and foreign dignitaries. Synonymous with elegance and world- class service, the Diaoyutai State Guesthouse strikes just the note of high-toned chic Diaoyutai MGMHospitality desires to project with resorts like the recently opened MGM Grand Sanya. Located on Hainan Island’s scenic Yalong Bay, Sanya debuted in early February in time for the Spring Festival, when it hosted former Vice Premier Wu Yi. A beachfront getaway designed to fit cosily with the aspirational self-image China’s new rich are busily cultivating, it features 675 rooms, suites and beach villas (the smallest starting at 56 squaremeters), meeting space, and much of what those who can afford it might expect to find on the Las Vegas Strip: like a poolside day club by Wet Republic and an AOC wine bar, along with the fine-dining restaurants, the nightclub and spa and proximity to several golf courses. Next up for the joint venture is Diaoyutai Hotel Beijing, Lama Temple, scheduled to open in the third quarter in the Guozijian Cultural Reserve in the heart of the capital with a Tadao Ando architectural scheme blending traditional Siheyuan elements with contemporary styles. It will house 105 rooms and suites, conference and meeting space, an art museum and 12,500 square meters The lush gardens of the Diaoyutai State Guesthouse in Beijing MGM Grand Sanya