Caesars Entertainment Corp. makes its Asia debut with the construction of a new 3-billion yuan ($473-million) Caesars Palace hotel. The Caesars Palace Longmu Bay in Hainan Province is expected to open in 2014.
The flagship 5-star luxury resort is the first venture for Caesars Global Life, the new non-gaming division of Caesars Entertainment that focuses on developing branded hotels, resorts, villas and entertainment destinations.
The company plans to develop 25 hotels and resorts in China over the next five years in cities like Shanghai, Beijing, Chengdu, among others.
Caesars chose to debut in Hainan, long considered the Hawaii of China, and just a short flight away from cosmopolitan centers of Hong Kong and Guangzhou. Longmu Bay boasts the only west-facing shoreline in China.
The luxury hotel will not feature a casino, a departure for a company associated with gambling and the Las Vegas strip. Caesars has been unable to obtain a gaming license from the Chinese government, but that has not discouraged the company from setting a foothold in fast-growing Asia. Caesars, instead, is aggressively pursuing non-gaming ventures in Asia.
“The hotel business is a different business that’s relatively unregulated and there’s very fast growth right now,” Mr. Alex Mirza, a senior vice-president and head of Caesars Global Life said. “It gives us an opportunity to get into the market with our brand and create a lot of the same experiences while building relationships with governments and developers to get a gaming license.”
Caesars is partnering with Guoxin Longmu Bay Investment Holding Co. Ltd., one of the leading investment and development companies in China. The new resort will be the focal point of more than five square kilometers of tourism developments, spearheaded by Guoxin Longmu Bay Investment Holding Co., that is estimated to cost 36-billion yuan ($5.7-billion).
“Caesars Palace Longmu Bay will set a global luxury standard in China and build a foundation for Caesars’ expansion throughout the Asia-Pacific region, where our brands and reputation are already our most valuable assets,” said Caesars Entertainment Chairman, CEO, and President Gary Loveman. “We are very pleased to be working with Guoxin Longmu Bay Investment Holding Co. Ltd. on this landmark resort.”
The Longmu Bay resort, designed by architects PTW, boasts 1,000 rooms, two colosseum-type entertainment venues, restaurants with Michelin-rated chefs, 36 holes of golf, as well as a marina, spa, and retail shops.
“This dwarfs rival resorts from the Ritz-Carlton and others in the region, which top out at between 300 and 400 suites,” Mr. Mirza said.
Hainan is the smallest province in China, and is made up of more than 200 islands scattered across southern China. Caesars operates 52 resorts in seven countries and is most famous for the original Caesars Palace in Las Vegas, which opened in 1966.