MGM signs Lake Charles development agreement
October 20, 2011
MGM Resorts International and Creative Casinos, LLC have 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 targets 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.”
Lee also cited MGM's unique marketing knowledge, regional marketing offices that have operated for more than 20 years, and M life, which “will further enhance the appeal of Mojito Pointe, offering 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.”
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