In Hong Kong, we build a global business empire

Early morning of January 5th, John Fitzgerald Kennedy International Airport.

At this moment, on a tarmac at the airport, a business jet bearing the Citigroup logo is quietly parked in the morning light.

This is a Gulfstream III business jet with a range sufficient to fly directly from the easternmost to the westernmost part of the United States. The cabin is equipped with comprehensive communication and office facilities, making it a common vehicle for Citibank executives on business trips.

Lin Haoran and John Reed boarded the plane under the guidance of staff and took their seats on the large leather sofa chairs.

Liu Xiaoli, Li Weidong, and Li Weiguo followed closely behind.

The flight attendant brought coffee and snacks, then returned to the service cabin, leaving the two to talk in the quiet space.

"Lin, how did you sleep last night?" John Reed asked with a smile, taking a sip of his coffee.

It's only around 7:50 a.m., ten minutes before our 8:00 a.m. takeoff time, so I've gotten up really early today, around 6:00 a.m.

Lin Haoran leaned back in his chair and smiled, "Not bad. I rested at the hotel all day yesterday and didn't go anywhere. The hotel bed was very comfortable, and I slept very well. How about you?"

John Reed said, “I’m fine too, but to be honest, I thought about meeting Mr. Kirkkorian today a lot last night. I even contacted an industry bigwig who is very familiar with Kirkkorian through my connections. He told me that Kirkkorian is not a easy person to deal with.”

Lin Haoran laughed and said, "Even the most difficult person to deal with will always have something they want. As long as we can give them what they want, they will naturally cooperate. Although Kekorian is shrewd, he is a businessman, and businessmen have their own logic."

John Reed nodded and said with a smile, "You're right. After Kirkkorian split MGM into two companies, the film division suffered losses year after year, and he's been wanting to get rid of this burden for a long time."

The problem is that no one was willing to take over before because the debt was too high and the risk was too great. If you are willing to take over, they would be more than happy to do so.

However, because the MGM Grand Hotel is more profitable, it is much more difficult to persuade someone to sell it to you than the film industry sector.

After all, the MGM Grand Hotel is his cash cow, and its stable annual cash flow is a crucial support for his other investments.

Lin Haoran picked up his coffee cup, took a sip, and calmly looked out the window.

The airport runway gleamed silvery-gray in the morning light, and several planes were lined up in the distance, waiting to take off.

He didn't rush to reply, but instead weighed the difficulty John Reed had mentioned in his mind.

Then, Lin Haoran said, "John, judging from your expression, although acquiring the hotel business is quite difficult, there must be a way."

John Reed laughed and said, "Lin, as expected, nothing can be kept from you. After you decided to acquire all of MGM's businesses, I conducted an in-depth study of MGM and am indeed confident that I can help you persuade them."

"Oh? Tell me quickly, so I can have enough confidence in the negotiations!" Lin Haoran pressed.

He doesn't have enough intelligence sources in the US and basically has to rely on Citibank.
Citigroup, as one of the world's largest banks, has a unique advantage in business intelligence. Since John Reed said he was confident, he must have some key information.

John Reed put down his coffee cup, leaned forward slightly, and said in a low voice, "Lin, do you know what the biggest move the Kerkorian made last year?"

Lin Haoran thought for a moment and said, "He split MGM into two companies?"

“That was two years ago,” John Reed shook his head. “Last year, he quietly bought a large piece of land north of Las Vegas, about three thousand acres, near Highway 95, about fifteen miles from the city.”

That land is currently still wasteland, but he has already hired a designer to work on a planning project.

Lin Haoran's eyes lit up, and he asked, "He's going to build a new casino?"

John Reed nodded and said, "That's right. The competition among casinos in Las Vegas is getting fiercer. Although the MGM Grand has a good location and a well-known brand, it is old after all."

Kecorian is an ambitious man who wants to build a new, bigger, and more luxurious casino hotel to attract more customers and steal them away.

But this project requires a huge amount of capital. From what I understand, he spent nearly $200 million just on the land purchase, and with subsequent design, construction, and decoration, the total investment will be at least $1.5 to $2 billion.

Lin Haoran instantly understood John Reed's intention.

Kecorian wants to build a new casino, which requires a large amount of money.

MGM Studios has been losing money for years, which is a burden for him. Selling it and raising cash can help fill the funding gap for new projects.

While the MGM Grand Hotel is profitable, he might sell it if someone offered him an irresistible price.

After all, as long as there is cash, it doesn't make much difference whether the MGM Grand Hotel is sold or not; perhaps building a new casino would be more attractive to tourists.

“John, do you mean we can use his new project to our advantage?” Lin Haoran asked.

John Reed laughed and said, "That's right. Kirkkorian's new project needs a lot of money. If we can help him solve his funding problem, he may be willing to sell MGM Studios and MGM Grand Hotel."

Of course, we need to offer him a price that satisfies him.

Lin Haoran leaned back in his chair, tapping his fingers lightly on the armrest, lost in thought.

The information provided by John Reed is invaluable.

With this information, he had more leverage in the negotiations.

John Reid paused, then continued, "In addition, two years ago, in November 1980, a major fire occurred at the MGM Grand Hotel, prompting the global hotel industry to improve fire safety standards."

It did not reopen until July 1981 after reconstruction. The fire not only affected the reputation of the MGM Grand Hotel, but also put Kecorian himself under tremendous public pressure.

Although he handled it well, and the compensation and reconstruction were done very well, it's impossible that this incident didn't leave a shadow in his heart.

A shrewd businessman doesn't put all his eggs in one basket; his desire to build a new casino is, in a way, a way of diversifying risk.

Lin Haoran nodded, and said thoughtfully, "You mean, for him, the MGM Grand Hotel is not just a profitable hotel, but also a troublesome place that exhausts him?"

John Reed said, "You could say that after the fire, the MGM Grand Hotel had the highest security and fire safety standards in all of Las Vegas, which led to a significant increase in operating costs."

Although the hotel is still profitable, its profit margin has been much lower in the past two years compared to before.

Kerkorian is someone who enjoys challenges and new projects, and isn't very interested in established businesses. So, if you offer a good price, especially if it's a direct cash acquisition rather than some other method, he's very likely to sell.

After hearing this, a smile appeared on Lin Haoran's lips.

The information provided by John Reed gave him confidence in today's negotiations.

As long as we can talk, that's fine.

For him, having acquired MGM Studios, he felt something was missing if he didn't also bring in the MGM Grand Hotel business of the same name.

Moreover, the MGM Grand Hotel is now the world's largest hotel, covering 43 acres and boasting 2084 rooms. Almost everyone who goes to Las Vegas thinks of this world's largest hotel first, and the brand value it embodies is immeasurable.

Acquiring only the film studio and abandoning the hotel is like buying a beautiful piece of porcelain but not its box; even if the porcelain itself is intact, it will always feel incomplete.

Moreover, the film studio and the hotel are branded as a single entity. Separating them would dilute the value of MGM's major IP, which does not align with Lin Haoran's business logic.

At 8:00 a.m. sharp, the plane taxied off the apron on time, accelerated on the runway, and then soared into the sky!

Time flew by unnoticed. As the roar of the plane gradually subsided and the clouds outside the window thinned, it meant they were about to arrive in Las Vegas.

Lin Haoran put down his coffee cup, his gaze drifting across the airplane window to the vast desert beyond. The yellow sand dunes gleamed golden in the sunlight, and occasionally a few tenacious shrubs could be seen casting dappled shadows on the sand.

Whether in his past life or this one, this is his first time visiting Las Vegas, the world-famous gambling city.

In his previous life, he was just an ordinary office worker, earning a fixed salary every month. Even traveling abroad was a luxury, let alone visiting a consumer paradise like Las Vegas.

In this life, although wealth is no longer an issue for him, he has been busy with business development in Hong Kong and mainland China. Although he has visited the United States many times, he has never been able to find the time to see this miraculous city in the desert.

Now, he has finally arrived.

“Lin, look, that’s Las Vegas,” John Reed said, pointing out the window.

Lin Haoran followed his finger and looked up. On the distant horizon, a city was faintly visible.

The silhouettes of the skyscrapers shimmered in the sunlight, like a mirage built in the desert.

As the plane gradually descended, the city's outline became clearer, and the magnificent casino hotels on the Las Vegas Strip came into view one by one: the pyramid-shaped Luxor Hotel, the Venetian Hotel modeled after Venice, the Paris Hotel with a replica of the Eiffel Tower, the Excalibur Hotel shaped like a castle...

Each building is vying for attention, trying to attract tourists' eyes.

He had never been to Las Vegas, but he felt very familiar with its architectural style. He later visited Macau, where the style was basically the same as here.

This is understandable, as the casinos in Macau have indeed drawn heavily on the development model of Las Vegas. In particular, after the opening of the gambling market in 2002, the concept of "integrated resorts" and themed hotel designs from Las Vegas were introduced to Macau on a large scale, and many iconic buildings were directly "transplanted" to Macau.

The successful replication of the business model, and the investment by international giants like Las Vegas in Macau for global expansion, such as MGM, which will also appear in Macau in the future.

Looking at the familiar building outlines outside the window, Lin Haoran felt a strange sense of temporal and spatial dislocation.

He had visited Macau several times in his previous life, and the Venetian, Parisian, and City of Dreams there all had their prototypes in Macau.

It turns out that the "spectacles" seen in Macau all originated in Las Vegas.

This city is the true originator, the template and benchmark for gambling cities worldwide.

However, the most eye-catching building in Las Vegas today is still the largest white and light beige modern building, which is square and sturdy.

The building's sign was very large and eye-catching; so large that even from the airplane, Lin Haoran could clearly see that it read "MGM GRAND".

"Is this the MGM Grand Hotel?" Lin Haoran said with some surprise.

He had originally thought that the MGM Grand Hotel would be the typical Las Vegas style, extravagant, glamorous, and glittering.

Unexpectedly, the building in front of me was surprisingly understated, with white and light beige as the main colors and simple, sharp lines. It looked more like a modern business hotel, or more like a 70s Hollywood style and resort style, rather than a party venue in Las Vegas.

John Reed followed his gaze and laughed, "That's right, that's the MGM Grand Hotel. When the Kerkorian rebuilt it, the style wasn't changed at all."

After the fire, he only renovated the interior, leaving the exterior unchanged. He said MGM doesn't need a flashy exterior to attract people because the name itself is its biggest draw.

John Reed was right; the MGM Grand Hotel in Las Vegas is the epitome of luxury casino hotels.

Its status is not built on a flashy appearance, but on a reputation and service accumulated over more than a decade.

Kerkorian understood this perfectly, so he didn't need to use pyramids, the Eiffel Tower, or the canals of Venice to attract attention like other casinos, because the name "MGM" itself was the best brand.

Lin Haoran nodded thoughtfully and exclaimed, "Las Vegas is beautiful. It truly deserves to be called a miracle city built in the desert!"

John Reed laughed and said, "Beautiful? It's still pretty ordinary during the day. But wait until night, and you'll see the real Las Vegas. Neon lights, casinos, shows, beautiful women—everything you can imagine for a party is here!"
I have been to Las Vegas many times and I never get tired of the night view. During the day, Las Vegas is like an actor without makeup, simple and unpretentious.

As night falls and the city lights come on, the entire city transforms, a dazzling spectacle of lights and colors. The neon lights outside the casinos flash incessantly, and the street performers, luxury cars, and beautiful women create a scene of pure, decadent luxury.

Lin Haoran smiled slightly but did not reply.

He wasn't interested in Las Vegas nightlife; he came here for only one purpose—to take over MGM!

The plane landed smoothly and came to a stop after taxiing for a distance on the tarmac.

The flight attendant opened the cabin door, and everyone unbuckled their seatbelts and walked towards the door.

Compared to New York, where it was snowing just a few days ago, the temperature in Las Vegas was much milder. The daytime temperature was very comfortable; Lin Haoran felt it was at least in the teens Celsius.

On the tarmac, two black Lincoln sedans with the MGM logo were already waiting, clearly MGM's official vehicles.

A thin, white man in his sixties was getting out of one of the Lincolns.

Lin Haoran had read MGM's information, so he immediately recognized the old man as Kirk Koccorian, the current owner of MGM!

The man was wearing a blue fitted suit and a red tie. His hair was neatly combed. Although he was thin and had graying temples, his eyes were sharp and shrewd, exuding an undeniable air of authority.

The fact that this powerful hotel tycoon in Las Vegas personally came to the tarmac to greet him was clearly no ordinary courtesy.

However, John Reed is the vice president of Citigroup and its future leader, and Lin Haoran is also a big shot, so it's normal for him to come and greet them personally.

“Mr. Kirkkorian, hello! I’m flattered that you came to pick me up in person.” John Reed quickened his pace, took the lead, extended his hand, and smiled broadly.

Kocorian grasped John Reed's hand, shook it vigorously, and said with a smile, "Mr. Reed, you're too kind. How could I not personally greet the Vice President of Citibank?"

His voice was deep and powerful, carrying a composure born of long-standing authority.

Then, his gaze turned to Lin Haoran, his eyes filled with scrutiny and curiosity, and he continued, "This must be Mr. Lin Haoran, right? He is indeed young and promising, even more energetic than he appears in the newspapers."

Lin Haoran stepped forward with a smile, extended his hand, and said in a humble yet assertive manner, "Mr. Kerkorian, I have long admired your name. Thank you for coming to pick me up in person. You are too kind."

Kerkorian grasped Lin Haoran's hand, his gaze lingering on his face for a moment, as if assessing the young man's worth.

Then he laughed and said, "Mr. Lin, I have heard so much about your reputation on Wall Street and in the global business world. Meeting you today, I can confirm that it is indeed well-deserved."

Lin Haoran laughed and said, "Mr. Kecorian, you flatter me. I was just lucky."

Kerkorian laughed and said, "Luck? Although I don't work on Wall Street, I know that Wall Street doesn't believe in luck, only in ability. You're too modest."

He released his hand, turned to the side and gestured for them to get in. "Gentlemen, please get in the car. I have prepared lunch in the presidential suite on the top floor of the MGM Grand Hotel. Let's eat and talk."

The group got into the car. Kecorian and John Reed rode in one car, while Lin Haoran, Li Weidong, Li Weiguo, and Liu Xiaoli rode in another car.

The car drove out of the airport and headed towards the city center along the Las Vegas Strip.

Along both sides of this avenue, there are densely packed casinos and hotels, each one magnificent and luxurious, with luxury cars parked in front and a constant stream of tourists coming and going.

It looks stunning during the day, but it's hard to imagine what a decadent scene it must be at night.

However, Lin Haoran's mind was not on the scenery at all at the moment.

About ten minutes later, the Lincoln stopped in front of the MGM Grand Hotel. (End of Chapter)