US operator Pinnacle Entertainment is to acquire a 26 per cent share of Asian Coast Development, the owner and developer of the Ho Tram Strip beachfront complex of integrated resorts in southern Vietnam.
The $95m investment will see Pinnacle enter into a management agreement for the second integrated resort of the multi-phase Ho Tram Strip project, which is located 80 miles south-east of Ho Chi Minh City.
The first resort, the MGM Grand Ho Tram, is currently under construction and is scheduled to open in 2013. The second, to be operated by Pinnacle on behalf of ACDL, will be of a similar size to the MGM, which will have around 500 guest rooms, approximately 90 gaming tables and 500 electronic games.
"The phenomenal success and continued strong growth of destination integrated resort and gaming facilities in Asian markets are indicative of the demand for quality gaming entertainment options in Asia," said Anthony Sanfilippo, president of Pinnacle.
"We believe this region, when measured by gaming positions per available population, has strong growth potential, especially when compared to more mature markets. In addition to the attractiveness of the Asian gaming market, this opportunity in Vietnam offers many appealing characteristics, including an anticipated tax structure competitive with other Asian markets with integrated resorts and high, steadily increasing tourism levels in and around Ho Chi Minh City and Ba Ria-Vung Tau province, which make the Ho Tram Strip development the ideal project for Pinnacle to participate in the growth of this region."
