Genting Hong Kong has signed an agreement with former shareholder Genting Malaysia Berhad to operate a new Zouk Club – comprising a nightclub, restaurant and lounge – at Resorts World Genting.
The agreement, via Genting Hong Kong subsidiary Zouk Genting, runs for an initial term of three years and forms part of Genting Malaysia Berhad’s Genting Integrated Tourism Plan – an RM10.4 billion (US$2.5 billion) rejuvenation of its ageing flagship property.
Under the terms of the deal, Zouk Genting will manage all activities at Zouk Club including the establishment of all operating policies, standards and prices; management and supervision of daily operations; marketing and promotion; preparation of annual budgets, preparation of financial statements; and repairs and maintenance of the club.
For its services, Zouk Genting will be paid a monthly management fee equal to 3% of gross revenue plus an incentive fee ranging between 15% and 25% of annual EBITDA dependent upon the club’s performance.
Under the terms of a separate agreement, Genting Malaysia Berhad will pay Zouk Genting another monthly fee equal to 3% of gross revenue for the exclusive use of Zouk trademarks in Malaysia.
The combined fees are capped at around RM4.6 million in 2018, RM4.9 million in 2019 and RM5.1 million in 2020.
Due to open by the end of the year, Zouk Club at Resorts World Genting will look to follow the success of Zouk in Kuala Lumpur and moreso ZOUK Singapore, which is touted as the most popular nightclub in Singapore and was ranked fourth in DJ Mag’s Top 100 Clubs in 2017.
Genting Malaysia Berhad’s in-house magazine recently said, “Renowned for providing the best of the best in club culture to Singapore and Malaysia for over two decades now, Zouk’s powerful motto ‘One World. One Music. One Tribe. One Dance’ and unrivaled expertize in creating an unforgettable clubbing experience has garnered a wide regional following since its inception.”