The world’s largest casino entertainment company, Caesars Entertainment Corporation is in talks with leading Indian developers and hospitality players to expand its presence in the country. Caesars Global Life, the new hospitality unit of the company, is leading the discussions.
The $8.8-billion company launched Caesars Global Life in May to develop branded luxury hotels, restaurants and other lifestyle amenities in resort destinations around the world. India team under Neera Chanani, South Asia head of Caesars Entertainment Hospitality, will be based out of Mumbai.
With around $1 billion cash and cash equivalents at the end June 2011, it may not be difficult for Caesars Entertainment to invest in India. The company already has 52 casinos in seven countries. It also has approximately 42,000 hotel rooms and suites.
The company’s properties operate primarily under the Harrah’s, Caesars and Horseshoe brand names. Caesars also owns the World Series of Poker and London Clubs International family of casinos. However, Chanani is still exploring options in Indian hospitality sector that is expected to see investments of over $ 11 billion by 2012, as per Cygnus Business Consulting.
“We know the laws for casinos in India. We are talking with developers and hospitality firms on the approach to take. It’s all evolving right now. Most of the developments could revolve around licensing, franchising and management agreements. But, we have not firmed up anything yet. We should be able to come to some conclusions in next 3-6 months,” said Chanani.
Indian hospitality is expected to see over 40 international brands making their presence in the next few years. Apart from Caesars, Bangkok-based hospitality firm Lebua Hotels & Resorts recently announced its India foray with its first luxury hotel opening in December this year. Las Vegas-based MGM Hospitality has also announced its entry into the Indian market by partnering with Silver Resort Hotel India to develop a luxury property in New Delhi. US-based 3 Palms Hotels and Resorts is set to enter India, with two hotels.
While Caesars plans to launch multiple brands in addition to a new lifestyle brand that is in development, Chanani said the firm will be focusing on major top-tier cities, as well as resort and holiday destinations in India. However, it is also aware of the high land cost.
“It is expensive. This is why we need to see what approach we should take,” said Chanani, who mentioned that Caesars has done its in-house research on the India opportunity. Caesars has been working on an expanded presence in the fast-growing Asian markets for sometime now. Apart from India, it sees potential opportunities in Vietnam, Taiwan, South Korea, Japan, Philippines, Cambodia, Macao and Singapore.
