BEIJING, Feb. 17 /CNW/ - Melco China Resorts (Holding) Limited (TSXV: MCG) ("Melco China Resorts" or the "Company"), is pleased to announce that it has entered into definitive management agreements (the "Agreements") with Club Med Asie S.A. ("Club Med") to operate and manage two of the Company's new hotels at its Sun Mountain Yabuli resort, the Company's premiere four season destination ski resort in northern China. The two hotels consisting of 133 and 155 rooms completed by the Company in early 2009 have been selected by Club Med as its first operation in China and will be marketed as one, integrated, Club Med Yabuli Resort within the overall Sun Mountain Yabuli Resort property. Club Med will provide marketing and sales services for the Club Med Yabuli Resort with all costs for marketing and sales activities in the first year to be borne by Club Med. This includes the formulation of marketing strategies, campaigns, collateral, advertising, internet, call center, travel agents and corporate/group sales activities in co-ordination with the Company and utilizing Club Med's existing international and domestic China sales network. The Agreements have renewable initial terms of ten years with performance management fees tied to gross operating profit. As well, Club Med will provide funding of up to US $3 million (approximately C$3.15 million) for additions to the two hotels so as to include facilities and refinements to meet Club Med's brand and operating standards.
Melco China Resorts will retain the management of all ski (ski school, rentals, ticketing), retail and commercial operations, winter and summer resort attractions, mountain operations (lifts and snowmaking), and the existing 20-suite mountain top hotel and mountain top dining. The Company will continue to market the overall resort and continue with the development and operation of all future hotels and condohotels as well as the development and sale of resort vacation homes.
"Club Med is one of the pre-eminent resort operators in the world," stated Graham Kwan, Chief Executive Officer of Melco China Resorts. "The Club Med name is renowned for quality, luxury, and service for those seeking an engaging and active resort vacation. Adding their brand and marketing expertise to China's finest ski resort allows us to immediately expand our reach. Both companies share a passion for creating remarkable vacation experiences and we are looking forward to this being the first step in a long standing relationship in China."
"China is an exciting and dynamic country for tourism and one we are committed to as a growth market for Club Med." stated Mr Henri Giscard D'Estaing, Chairman of Club Med. "Over the last two years we have conducted extensive consumer research and the number of mainland Chinese guests visiting our Asian resorts continues to grow. We have reviewed many resorts across the entire country and in Sun Mountain Yabuli and Melco China Resorts, we have found a resort and company that shares our focus for excellence and the overall customer experience. We are very pleased to welcome Yabuli to our worldwide portfolio of award-winning luxury destinations that includes 22 ski resorts, and as the first Club Med resort in China."
The Agreements have been filed and are available for viewing in the SEDAR Database at www.sedar.com
About Club Med
Club Med is Club Méditerranée Group's leading brand. Club Med principally operates resorts as "Villages" so as to include accommodations, services and activities. Club Méditerranée was the inventor of the holiday club concept, becoming the worldwide leader in all-inclusive holidays. It operates in 40 countries, with 80 Villages on five continents and a cruise ship, the Club Med 2. In 2003, Club Méditerranée started implementing a repositioning strategy, redesigning its offer to meet the demands of a clientele seeking outstanding holidays. By creating the market sector of all-inclusive upscale holidays, friendly and multicultural in nature, Club Méditerranée has become the reference in the field of prestige holidays, benefiting from its ability to encourage ties and enjoyment through the professional attitude and consistent attentiveness and warmth of its staff and organizers.
About Melco China Resorts
Melco China Resorts is the premier master developer of four season destination ski resorts in China. Melco China Resorts is transforming existing China ski properties into world-class, four seasons luxury mountain resorts with excellent real estate investment opportunities for discerning buyers. In February 2009 the Company's Yabuli Resort was awarded Best Resort Makeover in Asia by TIME Magazine. Melco China Resorts' leadership team boasts a proven record of resort development success both internationally and in China. www.melcochinaresorts.com
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FORWARD LOOKING INFORMATION
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, and actual results may vary from the forward-looking information. Implicit in this information are assumptions regarding future operations, plans, expectations, anticipations, estimates and intentions, such as the plans to develop the ski resorts in China. These assumptions, although considered reasonable by Melco China Resorts at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of Melco China Resorts are subject to a number of risks and uncertainties, including general economic, market and business conditions, uncertainty relating to land use rights, adverse industry events for the ski and real estate industries, Melco China Resorts ability to make and integrate acquisitions, the requirements of recent Chinese regulations relating to cross-border mergers and acquisitions, the inability to obtain required approvals or approvals may be subject to conditions that are unacceptable to the parties, changing industry and government regulation, as well as Melco China Resorts ability to implement its business strategies, dispose of assets or raise sufficient capital, seasonality, weather conditions, competition, currency fluctuations and other risks, and could differ materially from what is currently expected as set out above.
Forward-looking information contained in this press release is based on current estimates, expectations and projections, which Melco China Resorts believes are reasonable as of the date of this press release. Melco China Resorts uses forward-looking statements because it believes such statements provide useful information with respect to the operation and financial performance of Melco China Resorts, and cautions readers that the information may not be appropriate for other purposes. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Melco China Resorts may elect to, it does not undertake to update this information at any particular time.
SOURCE MELCO CHINA RESORTS (HOLDING) LIMITED
For further information: For further information: Melco China Resorts, Investor Relations, Kevin O'Connor or Ali Mahdavi, Tel: (416) 962-3300, Fax: (416) 962-3301, Email: firstname.lastname@example.org