Silver Heritage confirms 2017 Nepal casino opening
Australian listed Silver Heritage Group (ASX: SVH) has confirmed earlier reports that their much anticipated Tiger Palace Resort Bhairahawa will open in phases beginning in September with the casino opening before December.
In their half-year results summary covering the period ending June 2017, the Hong Kong-based casino operator and developer said that Tiger Palace Resort Bhairahawa is fully funded following the Entitlement Offer which raised A$19m and that the casino resort is on schedule to open hotel and hospitality areas on September 30 and the casino one month later on November 30, 2017.
Tiger Palace Resort is the company’s first luxury casino resort in southern Nepal and faced construction delays having missed an anticipated February opening. Tiger Palace joins an impressive small portfolio of properties that includes the Millionaire’s Club in Kathmandu’s affluent embassy district in the Shangri La Hotel & Resort, and the Phoenix International Club near Hanoi – one of only 7 true casinos currently licensed and operating in Vietnam.
Tiger Palace is located near the Nepal/India border and is expected to draw players from one of the world’s most underserved gambling markets. Nepal is adjacent to the Indian state of Uttar Pradesh with a population of over 200 million and no casinos. Ninety percent of that number lives outside India’s largest city and capital, New Delhi some 12 hours away by road, or a little over an hour by plane.
The 26,598 sq ft casino is expected to open with 30 tables and 128 gaming machines with room to expand those numbers to 53 and 200 respectively in the near future. The company’s now solid financial position and the property’s location away from other 5 star accommodations and amenities may have factored into the decision to open the casino last. Many phased casino resort openings launch with a casino first, most likely in order to take advantage of instant revenues.
The property, is expected to open with 100 five-star guest rooms and 2 villas, 3 restaurants, 3 bars, a spa and fitness center, separate swimming areas for families and other guests, along with meeting and event space. Silver Heritage plans to eventually provide 400 guest rooms there.
The company’s report mentions further developments along the border including the proposed Tiger Resort 2 (current working name) and possibly a third Tiger branded property with a combined offering of over 200 gaming tables and more than 1,000 electronic game machines.
The company’s casino at the Phoenix luxury hotel in Vietnam’s Bac Ninh City added 3 VIP tables this month bringing the total to 15 along with 94 machines. Silver Heritage has a management agreement with the owner of the Phoenix that is due to run until at least March 31, 2025. That property brought in $235 million in net profit for the company in the first half of 2017 – the lion’s share of it from table games.
The Millionaire’s Club in Kathmandu didn’t fair as well with $156,000 in net losses for the period on $57,000 in Gross Profit.