MGM Resorts International has formed new hotel management joint venture with Hakkasan.
The new company, which will be known as MGM Hakkasan Hospitality, will focus on the development and management of luxury non-gaming hotels and resorts located in major gateway cities and resort destinations across the world. These will include existing MGM projects in the Americas, the Middle East and Asia, and Hakkasan projects in Abu Dhabi and Dubai.
Hakkasan started life as an Asian restaurant concept, launching its first outlet in London in 2001. But it has since diversified into the hospitality sector and recently joined forces with MGM for the Hakkasan Las Vegas Restaurant & Nightclub, which opened at the MGM Grand in 2013.
“This joint venture exemplifies one of our stated strategies of developing Hakkasan Group into a multi-faceted global lifestyle company,” said Khadem Al Qubaisi, chairman of the Hakkasan Group.
“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.”
Under the new joint venture, each party will provide its brand licences to MGM Hakkasan Hospitality, allowing the new group to develop a series of properties under the Bellagio, Hakkasan, MGM Grand and Skylofts labels. The company said that “early targets” for new properties will include such international destinations as New York, Beverly Hills and London.
Hakkasan Group’s existing CEO Neil Moffitt will lead the joint venture as CEO of MGM Hakkasan Hospitality, while MGM Hospitality’s COO Michael Evans, takes up the same position in 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,” said Moffitt.