Inside Asian Gaming

inside asian gaming October 2014 30 Faith, Hope and Ho Tram Vietnam’s first integrated resort has its share of challenges. Chien Lee has $20 million that says they will be overcome IAG : NewCity Capital has invested US$20 million in The Grand – Ho Tram, a beautiful property, for sure, but one with some well-documented challenges in terms of its accessibility. And of course there is a ban in Vietnam on domestic casino play, another sizable obstacle. What is the thinking behind this huge bet? Mr Lee: Ho Tram is a really, really interesting deal. I’ve followed this deal for almost one and a half years already. I watched them, the process: MGM has a contract to manage them, they pull out of the contract; the issue with the licensing delay; a lot of things going on. But I look at this, and my personal feeling C hien Lee likes China’s consumers—a lot. He’s followed them in their travels throughout China as a founder of Guangzhou- based budget hotel giant 7 Days Inn. He’s followed them to Macau’s baccarat tables as a founder of Asia Entertainment & Resources, now Iao Kun Group Holding, the first publicly traded VIP room/junket operator and the first to list its shares in the United States. Now he’s following them as they spend their way across Asia, betting US$20 million on the come that Vietnam’s The Grand – Ho Tram, a “hidden diamond,” as he calls it, is destined to take its place among the region’s top gambling and leisure attractions. Mr Lee’s investment in The Grand, made through his Miami, Fla.-based NewCity Capital, has bought him a seat on the board of the resort’s privately held owners, Asian Coast Development (Canada) Ltd, and he intends to play an active role in building the resort’s Chinese clientele and guiding expansion plans that include a second hotel and more tourist-focused offerings. ACDL and its majority investor, Harbinger Capital, are happy to have him too. “We are very excited,” said Harbinger boss Phil Falcone, the American private- equity tycoon who promptly followed Mr Lee’s gambit with another $50 million from Harbinger. Mr Lee recently sat down with Inside Asian Gaming to share his vision for The Grand and his growing interest in gaming, which is a new focus for him. He likes the limited-license nature of the industry. He’s mainly looking at emerging markets around the region, but he’s not ruling out the US either. It’s been something of a home base for the Guangzhou native since the early 1980s, and he’s comfortable with the financial climate there, as AERL/Iao Kun’s 2010 Nasdaq listing amply shows. The interview took place on the eve of Iao Kun Group’s planned introductory listing on the Hong Kong Stock Exchange and was held at a VIP room at Galaxy Macau, one of five Iao Kun controls in the city, together with rooms at StarWorld Hotel & Casino, Sands Cotai Central, City of Dreams and Le Royal Arc Casino. Insights Chien Lee