Cotai 2.0 - Parcels Five and Six
Macau's answer to the Las Vegas Strip enters a new phaseTuesday, 15 June 2010
Parcels Five and Six
The term 'Cotai Five and Six' to describe LVS's Cotai extension is convenient shorthand for writers and analysts. But it's somewhat misleading, making the project sound like the equivalent of a granny apartment built onto the family home, rather than what it actually is—a truly gigantic project costing almost twice as much as The Venetian Macao. When finished, it will have more than 6,000 hotel rooms—twice as many as The Venetian Macao—shared between four major brands: Sheraton, St Regis, Traders and Shangri-La.
In its first quarter 2010 results filing to SEC, LVS also said it had been given a two-year extension to complete the development of Parcel 3 on Cotai, next to The Venetian Macao, on condition the site was finished by April 2013. That looks distinctly ambitious, given the time it took to organise recommencement in Cotai Five and Six. The company added in its filing, however, that it might be possible to get a further extension on the deadline, but added: "If we are unable to meet the April 2013 deadline and that deadline is not extended, we could lose our land concession for Parcel 3, which would prohibit us from operating any facilities developed under the land concession. As a result, we could forfeit all or a substantial portion of our US$35.6 million in capitalised costs, as of March 31, 2010, related to our development on Parcel 3."