The Grand Hyatt Las Vegas Resort at The Cosmopolitan would have 2,700 rooms, including 1,700 that would be sold as residences.

Hyatt Hotels Corp. will affix its name on the Strip for the first time under an agreement with the proposed Cosmopolitan hotel-condominium project, the company announced Wednesday.

Under the agreement, the worldwide lodging chain will operate the $1.5 billion development's 2,700 rooms and condominium-hotel residences under the upscale Grand Hyatt brand.

The Cosmopolitan is planned for almost 9 acres between the Bellagio and MGM Mirage's planned Project CityCenter.

A spokesman for the Cosmopolitan said ground-breaking will take place in late summer, with opening expected in 2008.

Because Hyatt and the company building the Cosmopolitan are both privately held, financial terms of the arrangement were not disclosed.

Headquartered in Chicago, Hyatt operates 213 hotels in 43 countries, including two Nevada casinos: the Hyatt Regency Lake Las Vegas and the Hyatt Lake Tahoe near Incline Village. Hyatt also operates casinos in Indiana; Niagara Falls, Canada; Aruba and Greece.

Despite the company's gaming experience, Hyatt will not be involved in the Cosmopolitan's planned 70,000-square-foot casino.

The Cosmopolitan is being built by 3700 Associates, a partnership that includes several New York and Miami real estate developers and former Venetian executive David Friedman.

The partnership will build the hotel and turn the development over to Hyatt under a management agreement.

The property's official name will be The Grand Hyatt Las Vegas Resort at The Cosmopolitan.

Deutsche Bank gaming analyst Marc Falcone said having Hyatt become part of the Cosmopolitan enhances the development's overall profile. He said many of the major lodging chains would like to have a location on the Strip.

"I think there is a desire by a lot of them to have that sort of brand exposure on the Las Vegas Strip," Falcone said. "Hyatt adds a positive to the project."

Of the planned 2,700 hotel rooms, 1,700 are being sold as condominium-hotel residences, in which the owners can turn over the unit to the hotel operator to be used as part of the property's room base when not in use.

Sales for the condominium units began in February, but a Cosmopolitan spokesman would not say how many reservations had been accepted. The studio and one-bedroom rooms will range in size from 700 square feet to 1,100 square feet with each unit having its own 100 square foot balcony.

Friedman said having Hyatt handle the hotel aspect allows the Cosmopolitan to become part of Hyatt's worldwide reservation system. While 3700 Associates will oversee the condo-hotel sales, Hyatt will manage the rooms once they are put into circulation for hotel guests.

Hyatt has four hotel brands and expects to add a fifth next year through its acquisition of 143 properties in the AmeriSuites hotel chain. The company considers the Grand Hyatt as one of its more upscale offerings.

The Cosmopolitan is expected to consist of two 600-foot hotel towers and more than 4 million square feet of development, including retail boutiques, a dozen restaurants and several entertainment venues.