Singapore
Published November 22, 2006

Kerzner to spend $2b over 10 years on IR

It plans to have 34 F&B outlets on Sentosa that will serve int'l cuisines

By DANIEL BUENAS

KERZNER International, which has joined forces with CapitaLand to bid for the Sentosa integrated resort, will spend $2 billion maintaining and refurbishing its $5.28 billion Atlantis Sentosa project over the first 10 years if it wins the bid.


Star chefs: Kerzner has said it would bring in famous chefs such as Gordon Ramsay (left) and Nobu Matsuhisa to enhance the culinary experience

This rivals the $200 million that Genting International has previously said it would pump into its resort every year.

'This expenditure is purely to ensure that Atlantis Sentosa is kept appealing to its target markets,' Ian Douglas, Kerzner International's executive director of development for Singapore, said in a statement yesterday. 'Any expansion projects that would be developed would be new capex, over and above this commitment.'

Eighth Wonder - the third bidder for the Sentosa IR - has not said how much it has set aside for maintenance and refurbishment, though Merrill Lynch analyst Sean Monaghan reckons there is unlikely to be much difference between reinvestment amounts for all three bidders.

'You will get variations based on what each bidder is actually proposing to build, but we believe that the annual maintenance costs for all the bidders would be very similar given that the bid quantums are very similar,' he said.

Kerzner also said yesterday it plans to have 34 food and beverage outlets that would serve 48,000 meals daily at its resort.

The outlets would take up 21,000 sq m of gross floor area and would be located throughout its resort.

The consortium has roped in Asian F&B consultancy firm Peter Knipp Holdings to provide advice and market consultation.

'Food is such an important part of Asian culture and almost always central to memorable experiences and family celebrations,' said Kerzner's international division president Tobin Prior. 'Given that Atlantis Sentosa is targeted at families, we want to make sure that this celebratory experience is part of our offering at the resort.'

In its statement, Kerzner International said culinary tourism has emerged as an important market in recent years, and it aims to make the dining experience at its resort 'a visitor attraction in itself'.

The company said its 34 F&B options would include cuisine from countries such as India, China, Japan, Australia, Spain, the UK, US, South Africa and Singapore.

Kerzner has previously said it would bring in star chefs such as Joel Robuchon, Gordon Ramsay, Santi Santamaria, Nobu Matsuhisa, Sanjeev Kapoor and Alan Yau.

There are also plans for a FIFA cafe that would screen live and recorded matches and highlights of major football events from around the world.