MGM Acquires Stake in Group Operating NoMad Hotels

by Jessica Montevago
MGM Acquires Stake in Group Operating NoMad Hotels

The deal moves MGM into the boutique hotel business. Photo: Sydell Group

MGM Resorts International is entering the boutique hotel business with its latest acquisition, moving beyond the Las Vegas strip.

The hospitality company, which primarily operates casinos, has acquired a 50% stake in Sydell Group, the company that operates NoMad hotels and five other brands, the Wall Street Journal reported last week.

People familiar with the acquisition told the Journal that MGM was buying half the equity in the company. MGM has not disclosed the terms of the deal or the price.

New York-based Sydell Group has a portfolio of 14 hotels under the NoMad, The LINE, The Ned, Saguaro and Freehand brands. Upcoming properties include NoMad London and LINE San Francisco.

Last year, MGM and Sydell partnered up to open a NoMad Hotel at the 2,000-room Park MGM, Las Vegas. More of these crossover opportunities are expected with the new deal.

In an interview with Hospitality Design, Founder and CEO Andrew Zobler said he was originally approached by Jim Murren, chairman and CEO of MGM, to do a NoMad hotel as part of the Monte Carlo renovation project.

“Ultimately evolved into this idea that we would collaborate on the entire building together, and that they would be Park MGM and NoMad would be cousins and would have a relationship with each other,” he told the publication. “All of a sudden we love collaborations and all of a sudden the scale in Vegas is being able to collaborate with 10 restaurant people instead of one restaurant group and multiple designers.”

A spokesperson for MGM told the Journal the Sydell acquisition is “part of the next evolution of our growth opportunities.”

TMR Recommendations
Top Stories
Bahamas Resorts Assess Damage After Hurricane Dorian

The country’s tourism industry accounts for 60% of the gross domestic product, the most of any Caribbean nation.

Florida Hotels, Theme Parks Brace for Hurricane Dorian

Hotels and theme parks make adjustments to accommodate guests and residents in wake of the storm.

Two Standout Hotels to Consider for South Africa Travel

Here is an inside look at two standout hotels, from a focus on history in Johannesburg to an art experience in Cape Town.

Here’s What Taco Bell’s First Pop-Up Hotel Looks Like

After selling out its 70-rooms in just two minutes last month, The Bell: A Taco Bell Hotel and Resort welcomed guests from 21 different states to the Palm Spring desert for the first time this week.

Marriott Expands All-Inclusive Portfolio, Launches Dedicated Platform

Contracts have been signed for five new-build resorts in Mexico and the Dominican Republic, which are expected to open between 2022 and 2025.

MGM Increases Some Las Vegas Resort Fees

The lawfulness of the practice is being questioned by attorneys general, and it often creates headaches for travel advisors.

News Briefs
Tip of the Day

"Bringing companies, consumers and communities together is our best chance to protect destinations and ecosystems for future generations.” - Prince Harry, Creator of Travalyst

Daily Top List

The Best Times to Post on Instagram

1. Monday: 6am, 10am, 10pm

2. Tuesday: 2am, 4am, 9am

3. Wednesday: 7am, 8am, 11pm

4. Thursday: 9am, 12pm, 7pm

5. Friday: 5am, 1pm, 3pm


TMR Outlooks
Advertiser's Voice
Advertiser's Voice: USTOA's Recalculating with Harrison Greenbaum – Episode 2 (Dining in Mexico City)