MGM, Hakkasan Group Form JV Hotel Company
- Apr 16, 2014
MGM Resorts International and Hakkasan Group have partnered before, but now the two companies are taking their relationship to the next level with the creation of MGM Hakkasan Hospitality, a joint venture hotel management company.
It’s a marriage made in hospitality heaven. A product of Sin City, MGM is one of the world’s top international hospitality and entertainment companies, while London-based Hakkasan, in just 13 years, has solidified its prominence as a leading global lifestyle group providing unique restaurant and nightlife offerings.
“MGM Hospitality and Hakkasan Group are both entities with strong brand portfolios, experienced management teams, and similar development strategies, and the formation of MGM Hakkasan Hospitality enables us to take advantage of the synergies of operating as one company,” Michael Evans, chief operating officer, MGM Hakkasan, told Commercial Property Executive.
There are no games involved. MGM Hakkasan will design, develop and manage upscale non-gaming hotels, resorts and residential properties under MGM’s Bellagio, MGM Grand and Skylofts flags, and the Hakkasan brand. The target locations for the new projects will span the globe, with a focus on the top international gateway cities and premier resort destinations. New York, Beverly Hills and London are on the list, for starters.
The companies will kick-off the new joint venture by contributing the hotel and resort projects that they currently have underway. It’s a global start. The list includes MGM developments in the Americas, the Middle East and Asia, as well as Hakkasan’s endeavors in Abu Dhabi and Dubai.
“We believe that the timing of the formation of our joint venture is perfect, as the supply of new hotels in key markets in the Americas and Europe has been very limited over the last several years, and we are very well positioned to capitalize on the current upswing in the cycle,” Evans added.
A previous endeavor between MGM and Hakkasan hints at the potential success of the new partnership. In April 2013, the companies debuted Hakkasan Las Vegas Restaurant and Nightclub at MGM Grand to much fanfare.