Gaming revenues should allow the Park Hyatt hotel and casino in Macau to recoup its $1.7 billion investment in 11/2 to two years, according to Lawrence Ho Yau-lun, the group managing director of Melco International Development, which owns 42 per cent of the project. At the project's ground-breaking ceremony in Macau yesterday, Mr Ho said the yet-to-be-named joint venture between Melco and Publishing and Broadcasting Ltd (PBL) would be a vehicle to expand gaming in Asia. BNP Paribas Peregrine analyst Adrian Ngan Wai-hung said Melco was betting that lucrative gambling revenues would shorten the time it took the Park Hyatt to recoup its investment costs. A typical Hong Kong hotel project took 10 years to break even, Mr Ngan said. A Deutsche Bank report by David Li and Karen Tang projected that gambling would account for 93 per cent of Park Hyatt's revenue up to 2008. It expected Park Hyatt's revenue would be $1.8 billion in 2006 and $6.7 billion in 2007, with net profits of $445 million and $1.67 billion, respectively. The casino is scheduled to open in mid-2006 and the project is to be completed in early 2007. Park Hyatt's construction cost is expected at $1.5 billion while its land cost is about $200 million. A large portion of the $1.27 billion cash injection by PBL into its 50-50 joint venture with Melco will fund the project, according to the Deutsche Bank report. Meanwhile, Sociedade de Jogo (SJM) said it would invest three billion patacas in the new Lisboa Casino, which will comprise a casino and a 44-storey hotel. The project is scheduled to be completed in late 2008. SJM is a subsidiary of Sociedade de Turismo e Diversoes de Macau, which is controlled by Stanley Ho Hung-sun, the father of Mr Lawrence Ho.