LAS VEGAS, Oct. 20, 2011 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) and Creative Casinos, LLC today announced
a strategic relationship to develop and manage the proposed Mojito
Pointe casino resort in Lake Charles,
Louisiana. In exchange for a cash investment and other
consideration, MGM Resorts will receive an equity interest in
Creative Casinos and a management agreement to operate Creative's
Mojito Pointe casino resort.
Mojito Pointe is a luxury casino resort to be located on a
242-acre site in Lake Charles,
Louisiana. The resort will appeal to customers in
Southwest Louisiana and
Southeast Texas, including the
Houston area, the fifth largest
metropolitan economy in the United
States. MGM will manage the new resort under an MGM
brand to be announced and the resort will be fully integrated into
MGM's M life loyalty program. Creative Casinos will develop
and own the resort, which is expected to contain a casino with
approximately 1,500 slot machines and 50 table games and two hotels
with a total of 400 hotel rooms, including 30 VIP suites.
Construction on the resort is expected to begin before year-end in
anticipation of an opening in mid-2013.
"The relationship with Creative Casinos is another milestone for
our company," said Jim Murren, MGM
Resorts International Chairman and CEO. "It provides MGM the
opportunity to expand the reach of MGM's brands into an important
regional market and promotes our efforts to further grow our M life
customer loyalty program."
Daniel R. Lee, Chief Executive
Officer of Creative Casinos said, "We are thrilled to welcome MGM
Resorts International as an investor and as manager of Mojito
Pointe. MGM is the largest casino operator in Las Vegas and is known for some of the most
iconic brands in the gaming industry. MGM's brands reflect
the high quality and luxury that we want to build into Mojito
Pointe and, as one of the world's largest hospitality companies,
MGM has a wealth of resources and experience that will result in
the best possible project for Lake
Charles. For example, our strategic partnership brings
MGM's unique marketing knowledge, including access to regional
marketing offices that have operated for more than 20 years.
M life will further enhance the appeal of Mojito Pointe,
offering our guests access to approximately 41,000 guest rooms on
the Las Vegas Strip, as well as leading regional properties such as
Beau Rivage in Biloxi and the Gold
Strike in Tunica. We look forward to working with MGM to open
and operate Mojito Pointe."
The transaction is subject to customary conditions, including
regulatory approval, financing and entry into definitive
agreements.
Morgan Stanley & Co. LLC and Jefferies & Company, Inc.
have acted as joint financial advisors to Creative Casinos on this
transaction.
About Creative Casinos
Creative Casinos is a privately-held company controlled by
Daniel R. Lee, who was formerly the
Chairman and CEO of Pinnacle Entertainment and, before that, the
Chief Financial Officer, Treasurer and Senior Vice President of
Development of Mirage Resorts. The Company was selected by
the Louisiana Gaming Control Board for development of the fifteenth
and final state gaming license.
About Mojito Pointe
Mojito Pointe is a $400 million
casino resort (before financing fees and construction period
interest) to be built on land controlled by Creative Casinos in
Lake Charles, Louisiana. The
development was strongly endorsed by the voters of Lake Charles in a public referendum held in
accordance with Louisiana law on
April 30, 2011. Creative has
entered into a guaranteed maximum price contract with W.G. Yates and Sons Construction Company for
construction of the resort.
Mojito Pointe is planned to offer:
- An elegant casino featuring 1,500 slot machines and 50 table
games;
- Two hotels, consisting of a 372-guestroom hotel (including two
VIP suites) designed to obtain a four-star rating and a 28-suite
boutique VIP hotel;
- A 2,500-capacity showroom;
- A destination spa, tennis center, unique school of falconry,
and 18-hole championship golf course with approximately 1.5 miles
of water frontage;
- Numerous restaurants and bars, including an outlet of the
award-winning Snake River Grill
For more information about Mojito Pointe, visit the property's
website at www.MojitoPointeResort.com.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating a peerless
portfolio of destination resort brands, including Bellagio, MGM
Grand, Mandalay Bay and The Mirage. In addition to its 51%
interest in MGM China Holdings Limited, which owns the MGM Macau
resort and casino, the Company has significant holdings in gaming,
hospitality and entertainment, owns and operates 15 properties
located in Nevada, Mississippi and Michigan, and has 50% investments in three
other properties in Nevada and
Illinois. One of those investments
is CityCenter, an unprecedented urban resort destination on the Las
Vegas Strip featuring its centerpiece ARIA Resort & Casino.
Leveraging MGM Resorts' unmatched amenities, the M life loyalty
program delivers one-of-a-kind experiences, insider privileges and
personalized rewards for guests at the Company's renowned
properties nationwide. Through its hospitality management
subsidiary, the Company holds a growing number of development and
management agreements for casino and non-casino resort projects
around the world. MGM Resorts International supports responsible
gaming and has implemented the American Gaming Association's Code
of Conduct for Responsible Gaming at its gaming properties. The
Company has been honored with numerous awards and recognitions for
its industry-leading Diversity Initiative, its community
philanthropy programs and the Company's commitment to sustainable
development and operations. For more information about MGM Resorts
International, visit the Company's website at
www.mgmresorts.com.
Statements in this release that are not historical facts are
forward-looking statements involving risks and/or uncertainties,
including those described in the company's public filings with the
Securities and Exchange Commission. We have based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, statements regarding
the planned resort in Lake Charles,
Louisiana; the construction and financing thereof; and the
other terms and conditions of the planned transaction. These
forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements include effects of economic conditions
and market conditions in the markets in which we operate and
competition with other destination travel locations throughout
the United States and the world.
In providing forward-looking statements, the Company is not
undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law.
SOURCE MGM Resorts International