- Legal States
Rachael Price May 14, 2019 3 min read
Suncity Enters Hoiana IR as Exclusive F&B Company
- Suncity becomes exclusive Hoiana F&B caterer
- The company operates in the IR via a subsidiary
- Asia’s pull for gambling venues grows stronger
The largest Asian junket operator, Suncity Group, is heading into a Vietnam to manage an integrated resort, the group has announced.
Suncity Group Joins the Vietnamese Market
Suncity Group Holdings Ltd has revealed plans to join the Hoiana integrated resort through a subsidiary, SGMC (Hoi An). The announcement came on Monday, May 13, with Suncity Group inking a deal that would allow it to cater and provide casino properties with food and beverages.
Suncity has a stake in the developing Hoiana project, which is a joint-venture owned together with Chow Tai Fook Enterprises and VinaCapital, a Vietnam-based real estate company. Suncity is currently one of the owners of the Hoiana project with a 34-per-cent stake.
Bent on investing in its future, Suncity’s subsidiary will be the main caterer for the IR project for a period of 10 years, with an option to extend the partnership by another 10 years. SGMC will have to consult with other stake holders to establish proper rates as well as to get the go-ahead to acquire the necessary equipment to service the casinos.
Suncity to be the main caterer for Hoiana IR for a period of at least 10 years.
SGMC (Hoi An) is in a unique position to turn a solid profit of the overall revenue of the place, with 6 per cent of gaming earnings being paid back to the subsidiary. In addition, the company will benefit from 3 per cent of mass marketing gaming revenue, bringing the total to a solid 9 per cent. SGMC can also benefit from a 3 per cent annual gross fee on food & beverages alongside 6 per cent of all food & beverages earnings.
This is just one of the many investments the company has been pushing ahead with. Previously, Suncity joined a Russian government-backed casino project.
A Slice of Heaven for VIP Customers
Similar to other high-profile projects in the region, the Hoiana IR will focus exclusively on the VIP segment. Estimated 75 per cent of all gaming proceedings will be generated from VIP customers, initial forecasts indicate.
Instead of monopolizing the market, Suncity will invite up to six other junket operators to join the Vietnamese resort and cater to the various casino venues. Suncity has been known to expand across various markets, including recent investment in Tigre de Cristal casino, a Russian-owned property, and Golden Sun Sky casino in Cambodia, which is still under construction..
The Hoiana IR casino project includes a casino property that will feature 140 gaming tables and 300 slot machines as part of the initial stages of developments of the integrated resort. Suncity is aware that competition in the region will intensify as Macau’s GGR continues to grow and Japan is preparing to launch its own ambitious project.
Asia is a continuously important destination for intentional operators. Mohegan Gaming and Entertainment has been pushing ahead with its own plans to build a casino resort in South Korea, after the company has recently obtained all necessary permits.