Shangri-La joins rush for Macau business

Against backdrop of bumper first half, the firm is in talks to manage two hotels in the booming enclave

Shangri-La Asia has become the latest top-tier hotelier to bet on Macau's burgeoning tourism and hospitality sector.

Chief executive and managing director Giovanni Angelini, reporting a 24.5 per cent jump in interim profit to US$60.55 million, yesterday said talks were under way on management contracts for two luxury hotels to be built in the former Portuguese enclave.

Macau's aim to become Asia's Las Vegas has attracted a string of upmarket hotel operators and owners such as Dorsett of Far East Consortium, Four Seasons, Hilton, InterContinental, Marriott International, Regal and Starwood. Mandarin Oriental International is understood to be considering its second hotel in the enclave.

Mr Angelini said Shangri-La aimed to manage two hotels in Macau with a total of 1,500 rooms. 'There are a number of conversations taking place,' he said. 'We are negotiating purely on management contracts and won't run casinos.'

Declining to reveal the identity of the owners and location of the hotels, he would only say construction was expected to be completed in three years once talks were concluded.

After recording bumper profit growth in the six months to June, Shangri-La expects the strength in global business and leisure travel will gain momentum in the peak season in the latter half of the year.