Hong Kong’s powerful Cheng family, which owns and operates global jewelry giant Chow Tai Fook, has taken over management of Vietnam integrated resort Hoiana, according to a report by Bloomberg.
Citing people who are familiar with the matter, Bloomberg claims the Cheng family’s investment firm Chow Tai Fook Enterprises has assumed control of Hoiana’s day-to-day operations from LET Group Holdings, formerly known as Suncity Group.
Chow Tai Fook is a joint venture partner in Hoiana alongside LET Group and local conglomerate VinaCapital. Opened in mid-2020 into the teeth of the COVID-19 pandemic, the US$1 billion first phase of the integrated resort boasts four hotel brands operated by Rosewood Hotel Group, which is helmed by Sonia Cheng, daughter of Chow Tai Fook chairman Henry Cheng.
There are a total of seven phases over 13 years planned for Hoiana at a total cost of US$4 billion, with the final vision to include a multitude of hotels and residences, two 18-hole golf courses, MICE facilities, commercial space, high-end and outdoor retail and the existing Hoiana Suncity Casino, which offers around 140 gaming tables 350 electronic gaming machines.
The future of Hoiana has, however, been under a cloud ever since the arrest of Suncity Group CEO Alvin Chau in late 2021. The arrest of Chau, who has since been jailed for 18 years, proved a key moment in the collapse of the China-facing junket industry which was to have provided a majority of Hoiana’s VIP customers.
Hoiana recorded gross gaming revenue of just US$82.5 million in 2022, albeit improved from US$20.8 million in 2021.
It is unclear what direction the Cheng family, which has links to Macau’s SJM Resorts via a legacy 10% stake in parent STDM, will take Hoiana should the Bloomberg report be substantiated.
Aside from its SJM interest, Chow Tai Fook also holds a 4.99% stake in troubled Australian casino operator Star Entertainment Group as well as a 25% stake in Star’s AU$3.6 billion Queen’s Wharf Brisbane integrated resort development, due to open in early 2024.
Chow Tai Fook also assumed control of US$3.5 billion Caribbean integrated resort Baha Mar in 2016.
