MGM China Holdings has strengthened its presence in mainland China’s hospitality sector after acquiring MGM Asia Pacific Limited for $20 million, bringing a long-established hotel management platform under its direct ownership as it looks to grow beyond its Macau casino operations.
The Macau-listed gaming operator completed the acquisition on 30 June after signing a share purchase agreement with MGM Hospitality International Holdings, a company indirectly wholly owned by MGM Resorts International. Following the transaction, MGM Asia Pacific became a wholly owned subsidiary of MGM China and its financial results will now be consolidated into the group’s accounts.
Deal supports wider hospitality growth
MGM China said the acquisition aligns with its strategy to expand its hospitality management and cultural tourism business across Greater China.
The acquired company operates through MGM Hospitality Group (Asia Pacific), formerly known as Diaoyutai MGM Hospitality. The business follows a light asset hotel management model and has spent nearly two decades developing and managing MGM branded hospitality projects in mainland China.
The platform currently oversees eight operating hotels and has more than 12 active projects in its pipeline. It also has access to more than 1.5 million members of the Mlife loyalty programme.
Its portfolio includes properties such as MGM Grand Sanya, MGM Shanghai West Bund, MGM Qingdao, MGM Shenzhen, Bellagio Shanghai and Mhub by MGM Nanjing Jiangning.
Purchase funded with cash
MGM China paid the full $20 million purchase price in cash using internal resources.
The company said the valuation was agreed through arm’s length negotiations and reflected the seller’s investment in the business, its financial performance and the strategic importance of the mainland hospitality platform. The seller’s cumulative investment costs were approximately $15.4 million.
The seller, MGM Hospitality International Holdings, is an Isle of Man incorporated investment holding company that is indirectly owned by MGM Resorts, which remains MGM China’s controlling shareholder.
Hotel platform reports higher revenue
The hospitality business earns income from hotel management fees, technical services, marketing fund contributions, Mlife loyalty programme fees, sales commissions, distribution services, corporate training and branded residential projects.
As of 31 December 2025, MGM Asia Pacific reported audited net assets of HK$90.0 million ($11.47 million), compared with HK$90.6 million ($11.55 million) a year earlier.
MGM Hospitality Group generated revenue of RMB80.6 million ($11.86 million) in 2025, up from RMB71.9 million ($10.58 million) in 2024. However, its net loss widened to RMB7.7 million ($1.13 million) from RMB4.2 million ($618,240) during the same period.
Move comes as MGM Resorts faces takeover proposal
The acquisition comes at a time when MGM Resorts is reviewing a takeover approach from People Incorporated, which has offered US$48.30 per share in cash for all outstanding shares it does not already own. The proposal remains non-binding and is under review by MGM Resorts’ board.
Separately, MGM China chairperson and co-executive director Pansy Ho sold her direct shareholding in MGM Resorts through a series of transactions between 28 May and 3 June, generating gross proceeds of about $140.1 million.
MGM Resorts owns 55.95 per cent of MGM China, while Ho and companies controlled by her hold a combined 22.49 per cent stake in the Macau listed operator.
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