SJM Partners With Versace to Build Luxury Hotel in Macau
SJM Holdings Ltd. (880), Asia’s biggest casino company, said it signed an agreement with Italian fashion house Gianni Versace SpA to build a hotel under the luxury company’s brand at its upcoming Macau gambling resort.
The five-star Palazzo Versace hotel will be built at SJM’s planned resort on Macau’s Cotai area, Asia’s equivalent of the Las Vegas Strip, the companies said in a statement today.
SJM in May received government’s final approval to develop its first resort in Cotai that will include 2,000 hotel rooms and about 700 gambling tables. The company currently runs 20 out of 35 casinos in Macau and has none on the Cotai Strip, which is growing more popular with mainland Chinese tourists.
The Hong Kong-based company didn’t disclose the cost or timetable for Palazzo Versace hotel in today’s statement.
The casino operator last week joined MGM China Holdings Ltd. (2282) and Melco Crown Entertainment Ltd. (MPEL) in reporting higher profits in Macau, the world’s biggest gambling hub and the only place in China where casinos are legal. New attractions, added hotel rooms and an improved rail connection are drawing more mainland Chinese visitors to the former Portuguese colony.
Macau raked in $38 billion in casino revenue last year, with two-thirds of that coming from the high-stake gamblers, or so-called VIPs. Deutsche Bank AG has estimated that the city’s casino revenue will rise 17 percent to $44.5 billion this year.
The hotel will be the first Palazzo Versace in Asia. It has projects in Australia and Dubai. Its projects feature luxurious spas, penthouses and landscaped gardens with promenades and fountains.
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