MGM Resorts International has entered into a new long-term branding agreement with MGM China Holdings Limited, effective January 1, 2026.
The branding agreement provides for a term through the end of the current concession in 2032. If a further concession is granted or awarded, the term shall be automatically extended until the earlier of the expiration of a new concession or December 31, 2045. This secures an important right for MGM China as the MGM brand has served it well, which is reflected in the significant gains in market share and increased profitability since the end of the pandemic. Market share has nearly doubled from a pre-pandemic level of approximately 9 percent to a year-to-date September 30, 2025 share of approximately 16 percent. Further, the new agreement eliminates the need for the parties to negotiate a new agreement every three years, which protects MGM China’s shareholders by securing its most important intangible asset after the concession itself, and provides MGM Resorts with fair compensation for the use of its brand.
The new monthly license fee has increased from 1.75 percent to 3.5 percent of MGM China’s adjusted consolidated net monthly revenues (determined in accordance with IFRS). The fees will be subject to an annual cap determined by certain variables, as required by the Hong Kong Stock Exchange, the most significant being business volumes of MGM China. As part of this agreement, MGM Resorts will receive approximately 66.6 percent of the license fee.
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