Las Vegas Sands and Starwood have signed on a new 1,200-room Sheraton and a 300-room St. Regis hotel being developed by in Macau.The parties have entered into a non-binding letter of intent and expect to enter into binding definitive agreements before the end of the second quarter of 2006.
“Well known for its innovative spirit and stable of renowned brands, Starwood’s participation furthers our goal of establishing the Cotai Strip as Asia’s Las Vegas(TM),” said Sheldon Adelson, chief executive officer of Las Vegas Sands Corp.
“With its significant global footprint and warm service culture, the Sheraton flag will be a comforting presence to travelers from all over Asia and beyond, while St. Regis’ uncompromising luxury will serve as a beacon to the world’s most elite jet setters.”
The deal sets the stage for the development of a complex that will feature the 1,200-room Sheraton Macao and a 300-room St. Regis hotel, as well as 300 vacation suites, all operated by Starwood.
In addition, the complex will also showcase retail, entertainment facilities and casino gaming which will be operated by Las Vegas Sands Corp.
“The Cotai Strip is a marquis project in the world’s most dynamic market, and as we continue to aggressively develop hotels throughout China to secure our position as the country’s number one operator of upscale and luxury properties, this was a great opportunity to fly our flags,” said Steven J. Heyer, Starwood’s chief executive officer.
“We are excited to play a key role in the Strip’s future success and look forward to doing our part to enhance the vitality of the area and attract leisure, business and convention travelers.”
The Cotai Strip is a master planned development of resort and casino properties on Cotai, an area of reclaimed land between the islands of Taipa and Coloane in Macao.
Las Vegas Sands has previously announced plans to develop other hotel projects including The Venetian Macao which is currently under construction, a Four Seasons hotel, a Shangri-La Hotel and a Traders hotel.
Las Vegas Sands said it expects to make additional hotel, retail and entertainment announcements in the weeks and months ahead.
Starwood Hotels & Resorts has expanded its portfolio in China significantly in the last two years with the opening of Sheraton hotels in Haikou on Hainan Island and Dongguan, Le Meridien She Shan, Shanghai, and Four Points by Sheraton Shenzhen. In the past 24 months, the company has signed agreements to manage new hotels in Shenzhen, Xiamen, Beijing, Changsha, Haikou, Guiyang, Hong Kong, Dameisha, Urumqi, Changshu, Shanghai, Zhejiang, Zhongshan and Guangzhou.
With these two latest hotel deals, Starwood now has 22 hotels and resorts under construction or development in China under its Westin, Sheraton, W Hotels, Le Meridien and Four Points by Sheraton brands.
Statements in this press release which are not historical facts are “forward looking” statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Forward- looking statements involve a number of risks, uncertainties or other factors beyond the Company’s control, which may cause material differences in actual results, performance or other expectations.
These factors include, but are not limited to general economic conditions, competition, new ventures, government regulation, legalization of gaming, interest rates, future terrorist acts, insurance, and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission.