Las Vegas Sands Corp. and Fairmont Raffles Holdings International have announced the addition of 1,500 rooms to the Cotai Strip in Macau. The area currently being developed by Las Vegas Sands in the People’s Republic of China Special Administrative Region of Macao.
The parties have entered into a non-binding term sheet and expect to enter into binding definitive agreements before the end of the third quarter of 2006.
The deal outlines plans for Las Vegas Sands to develop and own a resort complex slated to feature 1,500 rooms that will be managed by Fairmont Hotels & Resorts and Raffles Hotels & Resorts, two of the luxury brands owned by Kingdom Hotels International and Colony Capital. Additionally, approximately 300,000 square-feet will be allotted for a Raffles branded, residential product.
The complex will also feature entertainment and casino gaming facilities as well as retail space connected to the neighboring retail area. These facilities will all be owned and operated by Las Vegas Sands Corp.
“This completes our vision for the first phase of the Cotai Strip and we could not be happier with the quality of hotel companies that have joined with us in our pursuit of developing Asia’s Las Vegas(TM),” said Sheldon G. Adelson, chairman and chief executive officer of Las Vegas Sands Corp. “Fairmont and its owners, Colony Capital and Kingdom, are world-class organizations and it is truly an honor to have them as a part of our Cotai Strip family. We look forward to working with them and building a successful global tourism destination.”
“We are very excited about this transaction as it is the first announced Fairmont hotel in Asia and we welcome the opportunity to develop our project with an excellent partner such as Las Vegas Sands,” said William R. Fatt, Fairmont’s chief executive officer. “The prospect of simultaneously entering a new market with both the Fairmont and Raffles brands demonstrates the significant opportunities that exist for global expansion within our new company structure.”
“Sheldon Adelson is a true visionary in the gaming industry and his grand plans for Cotai demonstrate that clearly,” said Thomas J. Barrack, chairman and chief executive officer of Colony Capital. “We are pleased to be working with him and are delighted that the Fairmont and Raffles brands will be associated with this spectacular project.”
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, Starwood’s Sheraton and St. Regis brands, a Shangri-La hotel, a Traders hotel and Hilton hotels.