MGM and Diaoyutai State Guesthouse intend to create a joint venture to develop luxury non-gaming hotels and resorts around the world under a new joint brand that associates "MGM Grand" with "Diaoyutai." The duo initially plans to target locations in the People's Republic of China. The parties hope to conclude a definitive joint venture agreement in the first quarter of 2007.

Earlier this month, MGM announced a non-gaming resort development partnership with the Abu Dhabi government's Mubadala Development Co. The partnership has the same general international development goals as the one with Diaoyutai State Guesthouse and also will develop a combined brand. The current difference is that the Abu Dhabi partnership plans to begin with projects in Abu Dhabi, Las Vegas and the United Kingdom while the Diaoyutai partnership will initially focus on the People's Republic of China.

An MGM executive could not be reached Wednesday for comment on whether geographic markets are being divvyed up between the two partnerships or whether the two new brands will compete against one another.