DOW JONES NEWSWIRES
MGM Mirage (MGM) and New Giza for Real Estate Development are
planning a luxury hotel near the base of the famous Giza pyramids,
with the Egyptian developer providing the funding.
MGM Mirage shares were up 2.6% at $6.53 in recent premarket
trading. However, the stock has lost roughly 85% of its value in
the past year, though it has more than tripled since hitting an
all-time low of $1.81 in March.
The casino operator, which has a pyramid theme and is controlled
by billionaire investor Kirk Kerkorian, has been in turmoil in
recent months as it struggles to pay down more than $14 billion in
debt as casino revenue continues to decline. MGM Mirage recently
launched a separate hotel division and has struck deals with
developers to spread its brands around the world. In the past, MGM
Mirage has struck joint-venture partnerships with real-estate
developers and other casino operators.
MGM Mirage will provide management services and brand fees
through its hospitality unit. New Giza for Real Estate Development
is developing the resort community, which will be about 40 minutes
from Cairo's airport and connected by electric train to an Egyptian
antiquities museum that is under construction.
The 550-room MGM Grand is being designed and is expected to open
in 2013. The 1,500-acre development will include upscale homes,
three resort hotels, restaurants, shopping malls and a high-end
golf course.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com