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SUN INTERNATIONAL ANNUAL REPORT ’10
INTERNATIONAL EXPANSION
Chile
Two months after the ‘official’ opening of our Monticello Grand Casino
and Entertainment World in Chile in December 2009, the southern part
of the country was hit by its second largest ever recorded earthquake,
measuring 8.8, turning the region into a national disaster area. After
extensive repairs, the casino re-opened on 30 June.
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THE EARTHQUAKE AT MONTICELLO
Fortunately for the 4 500 guests and staff who were at Monticello
when the quake struck, there was no loss of life and all were
evacuated within 15 minutes, after which security shut down
the power and water. Transport to the complex – normally a
45 minute trip from Santiago – was transformed into a four-hour
ordeal across collapsed roads.
The road infrastructure has been restored. While the damage
to the complex amounted to US$8.2 million, there was no
significant structural damage to the buildings. Four months
after repair works began, Monticello reopened its doors to the
public on the last day of the financial year. It has traded
strongly in the first two months after reopening and indications
are that it will continue to do so.
Structurally the buildings withstood the earthquake but the
water from the fire system caused major damage to carpets and
shopfittings. The force of the quake resulted in major cosmetic
damage, cracking marble fittings, tiles, ceilings, drywalling and
architectural finishes.
It took Monticello management a week to complete a basic
cleanup in consultation with the insurers. In spite of significant
challenges such as a lack of building materials, a depleted labour
force and escalated prices following the quake, the casino doors
reopened to the public on 30 June, with many customers
queuing for up to 90 minutes in anticipation of re-entering their
favourite casino and entertainment destination.
Nigeria
In Lagos, Nigeria, we opened the new casino at the Federal Palace Hotel. In
the first month of operations, more than 3 000 guests visited the casino’s
200 slot machines and eight gaming tables. The hotel’s 500-seater
permanent marquee was completed and bookings have exceeded
expectations. We invested US$2.5 million in a swimming and recreation
club, another first for Lagos. This included the refurbishment of the existing
Olympic-sized pool and the addition of water park slides, tennis courts, an
outside exercise park, jogging track, miniature golf, a children’s play area, a
food and beverage outlet and a merchandising stall. The club opened at the
end of September 2010.
The Federal Palace acquisition was completed on 26 May 2010 with the
group now owning 49% of the company. Prior to this date, the 29%
investment was held as an associate. The group has invested US$28 million
in equity and advanced a loan of US$15 million to the company.
Southern Africa
A R145 million refurbishment of the Lesotho Sun commenced in March 2010
and in July, work began on a R85 million refurbishment of the Kalahari
Sands in Windhoek, Namibia.
We continue to explore other opportunities in Africa and South America.
SOUTH AFRICA
Following the award of the casino licence for the Wild Coast Sun, an
extensive R400 million refurbishment programme commenced in September
2009. This included an upgrade of the casino, existing conference facilities,
all hotel bedrooms, the reinstatement of 150 bedrooms from 50 Vacation
Club units, the refurbishment of the buffet restaurant, lounge bar and Aloha
Village restroom facilities, a new world-class water park, a new generator
and a R1 million contribution towards improvements at the Cultural Village.
The programme is scheduled for completion at the end of June 2012.
We completed a R25 million softs refurbishment of the Palace of the Lost
City at Sun City in time for the World Cup.
Construction of the new Windmill Privé area commenced in May 2010
and should be completed by December 2010. The total capital
expenditure on this project is estimated at R35 million and includes both
smoking and non-smoking facilities, a lounge and separate entrance
from a new private parking area.
A R12 million conversion of staff units into additional hotel accommodation
at the Carousel property was completed in June 2010 and a R1 million
refurbishment of The Table Bay Hotel’s Pavilion Room was completed at
the end of May.