Hong Kong’s Shun Tak Holdings has renewed its Master Products and Services Agreement with STDM – the parent company of Macau gaming operator SJM Holdings – in a deal that will see it continue to provide hotel management and travel-related services for the next three years.
The term of the agreement is backdated to 1 January 2019 and continues through to 31 December 2021.
In a filing to the Hong Kong Stok Exchange, Shun Tak said that the renewed agreement includes the provision of management and operation services to hotels and other hospitality properties and business owned by the STDM Group including Grand Lapa Hotel, Grand Coloane Resort and Macau Tower; a range of other property related services to various properties owned by STDM; ferry ticket transactions; and the sale of travel and transportation products and provision of travel agency services including hotel accommodation, cruise services, taxi services and ticketing.
The agreement is on a non-exclusive basis.
Renewal of the agreement comes almost one month to the day since Shun Tak Holdings Chairman Pansy Ho, who holds a 26.5% interest in STDM either directly or through companies she controls, formed an alliance with Hong Kong’s Fok Family that gives them a 53% combined shareholding in STDM. STDM in turn holds a 54% stake in SJM.
Under Shun Tak’s previous Master Products and Services Agreement with STDM, Shun Tak earned HK$170.6 million in 2017 and HK$148.9 million in the 11 months through 30 November 2018.
The agreement also sees STDM provide travel products including hotel accommodation, tourist spot tickets, local tour and helicopters tickets to the travel agency arm of Shun Tak, plus business support services such as towage and associated marine operation services.
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