Versace signs deal to build hotel at casino resort in Asian gambling hub Macau -
20th August 2013

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Versace Stanley Ho Casinos Fashion Hotels Resorts Macau China Asia

HONG KONG — Italian fashion house Versace says it has signed a deal to build a luxury hotel at a casino-resort in Macau, the world’s top gambling market.

Versace and Macau casino operator SJM Holdings Ltd. said in a joint statement Tuesday that the five-star Palazzo Versace hotel will be part of the resort SJM is building in the former Portuguese colony.

SJM, founded by billionaire Stanley Ho, received official approval in May to build a 2,000-room resort with 700 gambling tables.

It will be SJM’s first resort on the Cotai Strip, modeled as Asia’s version of the Las Vegas Strip.

The companies revealed few details such as cost or completion date.

Macau is the only place in China where are casinos are legal. It earned $38 billion in casino revenue last year thanks to rising numbers of affluent mainland Chinese visitors.

For Versace, the deal gives it access to those Chinese visitors, who have a penchant for luxury European brands. Having a famous label will help also SJM as it battles to keep up with rivals who have a head start on expanding in Cotai.

The district, an area of reclaimed swampland, is the site of all future casinos in the tiny enclave of Macau. Casino operators such as Las Vegas Sands Corp. have already opened glitzy multibillion-dollar resorts there.

The Macau hotel would be the third Versace hotel globally, after one in Australia and another in Dubai that’s under construction.

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Versace to build Macau casino resort hotel with SJM

Italian fashion house Versace has signed a deal to build a luxury hotel at a casino resort in Macau, Asia's gambling capital, it said on Tuesday.

In a joint statement with local casinos operator SJM Holdings Ltd (0880.HK), Versace said the five-star Palazzo Versace hotel will be part of a resort SJM is building in the former Portuguese colony's Las Vegas-style Cotai strip.

The statement did not give any financial details.

SJM, controlled by the family of gambling tycoon Stanley Ho, was given initial approval in May to build its first resort in Cotai, where it has been facing competition from rivals like Las Vegas Sands Corp (LVS.N) and Galaxy Entertainment Group Ltd (0027.HK).

The property, which is not expected to open before 2015, will have 700 gaming tables and 2000 hotel rooms.

The Macau hotel is Versace's first hotel in Asia and the third in the world after one in Australia and another that will open next year in Dubai.

Macau, located an hour away form Hong Kong by ferry, is China's only legal casino hub. Gambling revenues totaled $3.7 billion in the month of July alone, up 20 percent on a year earlier, thanks to rising numbers of mainland Chinese visitors.