New MGM and Hakkasan joint venture eyes London hotel

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MGM Resorts International and London-based Hakkasan Group have formed a joint venture hotel management company.

MGM Hakkasan Hospitality will design, development and manage luxury non-gaming hotels, resorts and residential offerings under the Bellagio, Hakkasan, MGM Grand and SKYLOFTS brands. 

The new JV plans to "agressively" embark on expansion globally, and has identified a number of "early targets" for new hotel developments, including London, New York and Beverly Hills.

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Hakkasan Group chairman Khadem Al Qubaisi said: "This joint venture exemplifies one of our stated strategies of developing Hakkasan Group into a multifaceted global lifestyle company.

"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."

All of the hotel and resort projects currently under development by each group 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.
 
MGM Resorts International chairman and CEO Jim Murren commented: "Our partnership with the team at Hakkasan began with the incredibly successful opening of Hakkasan Las Vegas Restaurant and Nightclub at MGM Grand in April 2013.

"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."

Hakkasan Group CEO Neil Moffitt will lead the joint venture as he becomes CEO of MGM Hakkasan Hospitality, and MGM Hospitality COO Michael Evans will be COO of the newly-formed company. The company will operate under a combined board and governance.

Moffitt said: "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 utilisation of its resources and be more efficient in its operations."
 

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