News for the Hospitality Executive
MGM MIRAGE Proposing a $4.5-$5 billion Atlantic City Resort
Three Hotel Towers, 3,000 rooms on Site Adjacent to the Borgata
Would Mimic the Company's Huge
$7.4 billion CityCenter
Project Under Construction on the Las Vegas Strip
|LAS VEGAS, Oct. 10, 2007 - MGM MIRAGE (NYSE: MGM) announced
today the company's Board of Directors has approved the development of
a major resort casino project at Renaissance Pointe in Atlantic City, New
Jersey. The new resort will have a budget in the $4.5-$5 billion range,
not including value of the land and associated costs.
The MGM Grand Atlantic City will be located on land the company considers the largest and best-located casino development site in Atlantic City, the 72-acre site at Renaissance Pointe owned by the company, adjacent to the 50% owned Borgata.
The proposed resort will consist of three separate hotel towers in a strikingly unique design. Totaling more than 3,000 rooms and suites, each tower will offer guests a distinctly different hotel experience, sharing the signature amenities of an MGM Grand resort, including the largest casino floor in Atlantic City with 5,000 slot machines, 200 table games and a large poker room; a 1,500-seat state-of-the-art theater; a variety of restaurant, nightclub and entertainment concepts; a spacious, world-class contemporary spa; a 500,000 square foot retail experience and a modern and versatile convention center.
"Our company has carefully considered the possibilities for our landholdings in Atlantic City," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "We believe the success at Borgata demonstrates the eagerness for further evolution of the nation's second-largest gaming market. We will continue to raise the bar, and by doing so, hope to re-energize the city's resort offerings and attract a new market of affluent East Coast customers. We believe our new resort will generate very healthy returns for our shareholders."
With its unique design and iconic shape, the resort will become the city's tallest building and will dominate the architectural skyline of Atlantic City. In addition to the dramatic statement made by the resort's three towers, designed by world-renown architects Kohn Pedersen Fox, the resort will include spectacular interior features designed by the highly innovative Rockwell Group and other leading designers.
The company intends to file for Coastal Area Facility Review Act (CAFRA) approval in late 2007 or early 2008. Ground breaking is expected in 2008, with an anticipated opening in 2012. Approximately 60 acres of the site will be used for construction of MGM Grand Atlantic City, with 12 acres reserved for future development, which may include a residential component. The company also owns an additional 14-acre site in the Marina District.
These cost estimates and the design and scope of MGM Grand Atlantic City are preliminary and subject to change. Refer to the "Factors Affecting Future Results" section of the Company's 2006 Form 10-K for further risks relating to construction projects.
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE is the largest landholder on the Las Vegas Strip, with significant undeveloped landholdings in both Las Vegas and Atlantic City. The Company recently opened MGM Grand Detroit, a major new resort; and will open another, MGM Grand Macau, before the end of the year. Also under development is CityCenter, a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip. MGM MIRAGE has signed definitive agreements with Kerzner International Holdings Limited and Istithmar Hotels FZE to develop a new multi-billion dollar integrated resort property on the Las Vegas Strip. The Company has a separate definitive agreement with the Diaoyutai State Guesthouse in Beijing forming a strategic relationship to pursue non-gaming business opportunities in the People's Republic of China. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com.
Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" Under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.
|Also See:||Borgata Hotel Casino & Spa to Open the 800 room $400 MillionThe Water Club, in Early 2008; Second Hotel Will Complete Borgata's Atlantic City Master Plan Development / July 2007|