Hong Kong-listed Summit Ascent Holdings Ltd says it expects the “cluster effect” to aid the expansion of its Russian business following confirmation this year that two rival operators would launch operations in the Primorye Integrated Entertainment Zone by 2019.
In its 2017 Annual Report, released on Tuesday, the Lawrence Ho-run company pointed to a range of key factors that bode well for the future in Vladivostok, with the arrival of NagaCorp and new casino investor Diamond Fortune Holdings Ltd seen as a significant boost for the region.
“Recent statements from two other casino operators have reiterated their intent to open properties in the Primorye IEZ by the second half of 2019, which reinforces the potential for a future cluster effect,” it said. “We expect that … ongoing efforts of the Russian government to promote the Russian Far East as a tourism destination will accelerate the already explosive growth of foreign tourism and provides us optimism that there is additional room to further ramp up our business.”
Summit Ascent also identified new room supply as an important addition in the short term.
“Over the past months, we saw increased lodging options come online, with approximately 50 rooms having become available for our use at local resorts nearby,” it said. “We expect another 130 rooms to become available over the winter months. We plan to house our lower value players in the offsite rooms while moving up the value chain at our own property with higher value players especially during the busier summer months.”
The company recently announced a 20% increase in revenue for the first six months of 2017 to HK$204.6 million, due primarily to a 140% surge in VIP rolling chip turnover at Tigre de Cristal.
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