Dubai to 2,000 Rooms, Development Costs Grow
from $650 million to $1.1 billion
|PARADISE ISLAND, The Bahamas - June 23, 2004
-- Kerzner International Limited (NYSE:KZL), a leading international developer
and operator of destination resorts and luxury hotel properties, and Istithmar
PSJC ("Istithmar"), an entity indirectly wholly owned by the Government
of Dubai, today announced that they have entered into an agreement which
will enable the parties to increase the scope of Atlantis, The Palm.
This agreement is expected to allow the Company's joint venture project with Istithmar to capitalize on the strong demand to the destination and the Government's focus on creating tourist attractions in Dubai. The revised development plan is expected to utilize most of the 120-acre site that lies on The Palm, Jumeirah. The marine and entertainment attractions will be increased and a second 800-room hotel tower will be added, bringing the total number of rooms to 2,000. The development costs are expected to increase from the previously announced $650 million to $1.1 billion. In addition, the Company's equity commitment to this project will increase from $60 million to $100 million.
Butch Kerzner, Chief Executive Officer of the Company, commented, "Dubai's tourist industry has continued to strengthen. Accordingly, we are accelerating the scope of development of Atlantis, The Palm. The Government of Dubai has shown great commitment to the development of the tourism sector while at the same time focusing on major infrastructure initiatives, including the expansion of Dubai International Airport and growing its airline, Emirates Airlines. The infrastructure on The Palm, Jumeirah is also being improved with the addition of a monorail that will have its final stop at the entrance to Atlantis. We are really excited with some of the concepts that we have designed for our second Atlantis product, which will continue to build on what we have learned and developed at Atlantis, Paradise Island."
Atlantis, The Palm is a proposed destination resort development to be located at the center of the crescent of The Palm, Jumeirah, a multi-billion dollar, leisure and residential man-made island in Dubai that is currently undergoing infrastructure development in anticipation of future projects. Once completed, Atlantis, The Palm will become the Company's second-branded Atlantis resort and will be positioned to serve as both the anchor for The Palm, Jumeirah as well as a leading attraction in Dubai. The increased project scope of Atlantis, The Palm will include the following:
The Company has entered into (1) a long-term management agreement with Istithmar that entitles it to receive a fixed percentage of the revenue and gross operating profit generated by Atlantis, The Palm and (2) a development agreement that entitles it to earn a development fee of $20 million that will be recognized over the development period.
This transaction is subject to various closing conditions, including obtaining all requisite governmental consents and binding commitments for the necessary financing.
Kerzner International Limited (NYSE: KZL) is a leading international developer and operator of destination resorts, casinos and luxury hotels. The Company's flagship brand is Atlantis, which includes Atlantis, Paradise Island, a 2,317-room, ocean-themed destination resort located on Paradise Island, The Bahamas. Atlantis, Paradise Island is a unique destination resort featuring three interconnected hotel towers built around a 7-acre lagoon and a 34-acre marine environment that includes the world's largest open-air marine habitat and is the home to the largest casino in the Caribbean. The Company also developed and receives certain income derived from Mohegan Sun in Uncasville, Connecticut, which has become one of the premier casino destinations in the United States. In its luxury resort hotel business, the Company manages nine resort hotels primarily under the One&Only brand. The resorts, featuring some of the top-rated properties in the world, are located in The Bahamas, Mexico, Mauritius, the Maldives and Dubai. Further One&Only properties are either underway or in the planning stages in the Maldives and South Africa.
This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Kerzner International Limited
|Also See:||George Markantonis Named Chief Executive Officer of Kerzner's Atlantis, The Palm, Dubai / January 2004|
|Kerzner International Studying a Few Mega-resort Destinations Centered on Water Parks; Planning Starts for Dubai's $650 million Atlantis, The Palm / September 2003|