Riche Multi-Media Holdings, a film distributor controlled by Charles Heung Wah-keung, has formed a HK$200 million joint venture with Hong Kong architect Steve Leung Chi-tien to redevelop casino hotels and residential buildings in Macau.
Their first project will be the enclave's 15-year-old Kingsway casino hotel.
The three-star, 383-room property, in which Mr Heung's China Star Entertainment has a 50 per cent stake, is set to undergo renovation to be relaunched as a mid-market boutique hotel.
The new joint venture to invest in, manage and brand hospitality projects, Best Season Holdings Corp, is 75 per cent held by Riche, with Mr Leung's private firm Steve Leung Hotel Design and Management taking up the remaining stake. Riche has issued a three-year, HK$200 million revolving loan to Best Season at an interest rate of 6.5 per cent.
Riche has signed a letter of intent with China Star for the new venture to overhaul the Kingsway's exterior, rooms, restaurants and casino, and act as a hotel management firm and marketing agent for the property.
Macau gaming magnate Stanley Ho Hung-sun's SJM-Investimentos (SJMI) holds a 1 per cent stake in Kingsway, while Mr Ho is chairman of the hotel company. SJMI is considering plans to build a 100,000 square foot casino annex on the site of a car park next to the hotel that will include more than 50 gaming tables.
