Inside Asian Gaming

INSIDE ASIAN GAMING | August 2013 10 COVER STORY T he house was packed and sizzling with excitement on the night of the 26th of July for the ribbon-cutting to mark the long-awaited opening of The Grand – Ho Tram Strip. It was a remarkable event for a lot of reasons. The presence of US hedge fund titan Phil Falcone was a bit of a surprise, but then it’s Harbinger Capital that put up most of the US$500 million to get the place off the ground. It was remarkable for who wasn’t there. Dialing back just six months ago you would have expected to see more than a few heavyweights from MGM Resorts International mingling with the junketeers and their well-heeled clients and the rest of the glitterati in their dinner jackets and gowns—a beaming Jim Murren himself in all likelihood. Instead it was Robert Wolfe who strode onto the stage, the tall, bespectacled chairman of Asian Coast Development (Canada) Limited, the Vancouver-based owners of this beautiful beachfront resort on Vietnam’s South China Sea coast. He looked exhilarated. He looked tired. Doubts have stalked Ho Tram since its inception. There are many who still question its viability, especially after MGM pulled out earlier this year as the resort’s operator. Mr Wolfe knows about all this of course. He spoke to the crowd of what an “amazing ride” it’s been. He said, “What has been accomplished here has been unprecedented in Vietnam. We are making history here tonight.” A smile made its way into the corners of his mouth. “So with that I think it’s time that we should have some fun,” and he reached for the knot of his tie. “My staff says I can’t wear a tie anymore.” The tie fought back for a second but he worked it with both hands and off it came. It had been years in the making, months behind its expected debut, but The Grand was ready for its close-up. Bob Wolfe, collar open to the world, stood vindicated. “We’re going to have a party!” he cried. “Game on!” The Grand – HoTramhas battled its share of obstacles to become Vietnam’s largest casino resort, really the first fully integrated resort in the country and the largest in the ASEAN world outside Singapore. It weathered the global financial crisis of 2008- 2009. It’s overcome funding issues. In the second half of last year certain completion deadlines were missed. Nothing uncommon perhaps when you’re trying to get a very big hotel with a casino and restaurants and all the rest built. But in an uncommon environment like Vietnam that can spell headaches. The government withheld the necessary investment certificate, which triggered a syndicate of Vietnamese banks to suspend the undrawn portion of the project’s credit facility. That was enough to move NYSE-listed Pinnacle Entertainment, a major regional casino operator in the States, to announce that it was writing off its 23% stake. While all this was going on Going the Distance Ho Tram is a ways from China and not too close to Ho Chi Minh City either. But The Grand is open for business. And it’s gorgeous Opening night and not an MGM executive to be seen.