DOW JONES NEWSWIRES 
 

MGM Mirage (MGM) and New Giza for Real Estate Development are planning a luxury hotel near the base of the famous Giza pyramids, with the Egyptian developer providing the funding.

MGM Mirage shares were up 2.6% at $6.53 in recent premarket trading. However, the stock has lost roughly 85% of its value in the past year, though it has more than tripled since hitting an all-time low of $1.81 in March.

The casino operator, which has a pyramid theme and is controlled by billionaire investor Kirk Kerkorian, has been in turmoil in recent months as it struggles to pay down more than $14 billion in debt as casino revenue continues to decline. MGM Mirage recently launched a separate hotel division and has struck deals with developers to spread its brands around the world. In the past, MGM Mirage has struck joint-venture partnerships with real-estate developers and other casino operators.

MGM Mirage will provide management services and brand fees through its hospitality unit. New Giza for Real Estate Development is developing the resort community, which will be about 40 minutes from Cairo's airport and connected by electric train to an Egyptian antiquities museum that is under construction.

The 550-room MGM Grand is being designed and is expected to open in 2013. The 1,500-acre development will include upscale homes, three resort hotels, restaurants, shopping malls and a high-end golf course.

-By Tess Stynes, Dow Jones Newswires; 201-938-2473; tess.stynes@dowjones.com