MGM Grand, Inc. (NYSE: MGG) and
Marriott International, Inc. (NYSE: MAR) announced today that they have
canceled their plans to construct a 1,500 room hotel adjacent to MGM Grand`s
flagship property in Las Vegas. The project was to have been managed by
Marriott as a Marriott Marquis Hotel. In light of the completed and projected
additional capacity to the Las Vegas market in 1998 and 1999, MGM Grand, Inc.
believes that it can more productively deploy its resources for new projects
such as Detroit and other growth opportunities.
MGM Grand reports that its flagship property in Las Vegas, MGM Grand Hotel
and Casino - The City of Entertainment is experiencing record first quarter
1999 occupancy of 96.5% vs. 90.6% in the comparable 1998 period, with average
daily rates up 8% year-to-year. Occupancy rates at the Company`s New York -
New York Hotel and Casino are currently 97.8% compared with 88.9% in 1998.
“Despite the very strong performance of our Las Vegas properties, we have
suspended our plans for the new hotel. Depending on market conditions, we
intend to build a hotel adjacent to our highly successful conference center in
the future,” said Alex Yemenidjian, President and Chief Operating Officer of
MGM Grand, Inc.
MGM Grand, Inc. is an entertainment, hotel and gaming company
headquartered in Las Vegas, Nevada. MGM Grand operates: the MGM Grand Hotel
and Casino and New York - New York Hotel and Casino in Las Vegas; Whiskey
Pete`s, Buffalo Bill`s and the Primm Valley Resort in Primm, Nevada; two
championship golf courses in California; the MGM Grand Hotel and Casino in
Darwin, Australia; and manages casinos in Nelspruit, Witbank and Johannesburg,
South Africa. MGM Grand is developing a temporary casino in Detroit,
Michigan, which is anticipated to open in the fall of 1999, followed by the
permanent hotel and casino resort thereafter. MGM Grand has also announced
plans to develop a hotel and casino resort in Atlantic City, New Jersey.
Marriott International, Inc. achieved excellent financial results and
opened a record number of new properties in 1998.
Marriott international, Inc. is a leading worldwide hospitality company
with over 1,800 operating units in the United States and 52 other countries
and territories. Marriott`s lodging business includes hotels and vacation
ownership (timeshare) resorts operated and franchised under the Marriott,
Ritz-Carlton, Renaissance, Residence Inn, Courtyard, Towne Place Suites,
Fairfield Inn, Spring Hill Suites, Ramada International and Marriott Vacation
Club International brands. Other businesses include senior living communities
and services, and food service distribution. The company is headquartered in
Washington, D.C. and has approximately 133,000 employees. In fiscal year
1998, Marriott International reported total sales of $8.0 billion.