MGM Resorts International acquired a stake in lifestyle hotel creator and operator Sydell Group. Though The Wall Street Journal reported it had acquired a 50 percent stake, MGM Resorts was unwilling to give a percentage or dollar amount and described the deal as a minimal investment on MGM’s side.
“As part of our long-term strategy to become an asset-light company, we’ve made an investment in the Sydell Group,” a spokesperson for MGM Resorts said. “MGM Resorts is a global leader in the hospitality and entertainment industry, and this is part of the next evolution of our growth opportunities.”
The Sydell Group operates several brands, including NoMad, Line and Freehand. Over time, MGM Resorts said, the company will bring scale to the Sydell Group projects, enabling stronger positioning for the lifestyle hospitality company while still allowing it to maintain its independence and grow its brands.
MGM previously partnered with Sydell on converting the Monte Carlo Resort and Casino in Las Vegas into two hotels: the 2,700-room Park MGM Las Vegas and the 292-room NoMad Las Vegas. The company said MGM Resorts shares similar visions and leadership synergy with Sydell and that it likes the management team there.
“Sydell has been a valued partner at Park MGM and helped us to bring NoMad to Las Vegas,” said the MGM spokesperson. “We look forward to the future when we can bring our combined unique hospitality and style to our consumers.”
MGM Resorts’ portfolio consists of 30 hotel and destination gaming properties. Nearly half of those are located in Las Vegas, while the rest are spread across the United States and Asia. The Sydell Group’s portfolio consists of NoMad New York, Los Angeles and Las Vegas; The Line Los Angeles, Washington, D.C. and Austin (Texas); Freehand New York, Los Angeles, Miami and Chicago; The Ned, London; Park MGM Las Vegas; Saguaro Palm Springs (Calif.) and Scottsdale (Ariz.); and the upcoming NoMad London and The Line San Francisco.