Cotai resort cost SJM at least HK$5 bln more

SJM Holdings Ltd will spend HK$5 billion (US$645 million) more than originally planned on its entire resort in Cotai. Chief executive Ambrose So Shu Fai told a press conference the project would now cost the company HK$25 billion. It is understood the inflated price will cover rises in labour and construction costs. SJM’s casino-resort in Cotai will include a Palazzo Versace hotel, which will probably have about 280 rooms and suites, a restaurant, spa, swimming pools and a shopping arcade. Mr So said the hotel would be designed by Italian fashion house Gianni Versace SpA but be owned and managed entirely by SJM. He declined to say if Versace would share any revenue on hotel operations or receive a licensing fee. The operator’s managing director Angela Leong On Kei downplayed to disclose the budget for the construction of Palazzo Versace hotel. The five-star luxury hotel will be the first Palazzo Versace in Asia.