Kerzner International Holdings Ltd, Paradise Island, Bahamas, announced on Monday that it has entered into an agreement with Hainan Gezhouba Industrial Co. and Greentown Hotel Management Co. to develop and operate a new One&Only resort in Sanya, China.
The 180-room hotel will include spa and is set to open in 2014 on a 40-acre (16-hectare) coastline plot. This will be the first One&Only-branded property in China.
“Tufu Bay is ideally suited for creating the first One&Only experience in China. The setting is just spectacular and I am very confident the resort will be well received by our many loyal One&Only guests and new guests alike,” said Sol Kerzner, chairman of Kerzner International.
The amount of money being invested in the project has not been disclosed, and Kerzner remains in financial hot water with US$2.4 billion in debt being sent last month to Wells Fargo & Co. to act as special servicer because of maturity default. Kerzner has struggled with cash flow issues as a result of the global economic downturn’s effect on tourism. Kerzner became a private company in 2006 following a US$3.8 billion buyout by the Kerzner family and private equity groups. The company’s long-time CEO Sol Kerzner recently stepped down.