Eden Leisure’s €31 million investment to create over 300 full-time jobs

Eden Leisure Group to bring on board an established European casino operator to manage the operations of the Casino, expected to be operational by summer 2015

Eden Leisure Group has announced a €31 million investment in four projects concentrating on the extension of the existing InterContinental Malta to create 32 new luxury suites as well as the refurbishment of the hotel’s existing suites; a new internationally branded hotel; the creation of a luxury Casino; and the complete overhaul and redesign of the Bay Arena, the Group’s 3,600 square metre multifunctional conference venue.

“InterContinental Malta will be closing for a three month period until the beginning of February in order to minimize disruption from the projects. All staff will be retained during this period and we will take the opportunity of closure to continue to upgrade the existing property and invest in significant further training of existing and new staff,” Eden Leisure Group chairman Ian De Cesare said.

The Group said the projects are expected to offer a significant benefit to the group and to the country as a whole.

“It will significantly upgrade the current product available in each of the markets including various hotel sectors, the Conference and Incentive meeting space and the Casino market and it will also boost the level of tourist coming to Malta as well as boosting the lower season months,” it said.

“The total project cost is expected to be around €31 million. Financing and permits for all projects are in place and in total we expect to create over 300 full time jobs through these new projects to add to the Group’s 450 FTE already employed. These projects will add to the Group’s current contributions to the economy by adding employment, investment and sizable tax amounts in gaming tax, corporate tax, social security and VAT.”

Suite Extension

The first part is the development of the InterContinental Malta Suite product. This envisions the creation of 32 new suites to be built on top of the existing InterContinental Malta. Coupled with this is the significant upgrading and hard refurbishment of our existing 26 suites to improve the standard enormously.

“We firmly believe that the country is changing and what is needed now is less additional volume and more quality. We could have fit a further 100 standard rooms however we have elected to create fewer luxury suites instead.”

This quality has been evolving for some time spearheaded by the private sector and the government’s aim of upgrading Malta’s brand through infrastructure projects and the attraction of high net worth individuals.

“The more affluent business or leisure traveler will not go to a place which does not have the product they look for. They look for brands they recognize and quality they expect. These suites will create a product currently unavailable in Malta and we believe that with the assistance of the InterContinental Hotels Group we have the tools to create a new market for tourism in Malta.”

Through the business network of InterContinental, channels are already being tapped in key markets, in which they operate, to create relationships with these luxury seekers. These new suites will range in size with large terraces which command lovely views of the Bay and surroundings. The aesthetics of the area will be improved with the landscaping of the suites and the rest of the building.

The latest in green technologies are being introduced including LEDs, Rooms Management Systems, heat and natural lighting sensors among others. They will also benefit from their own exclusive Executive Lounge area with complimentary food and drinks as well as a new roof top terrace with a pool and restaurant.

“Permits are now in hand and we expect to commence this month and have the new extension completed by mid to end of summer next year,” De Cesare said.

Casino

Further to the Group’s application for a Concession to Operate a Casino, the Privatization Unit has this week declared Eden Leisure Group as the preferred applicant. This is likely to be the most important addition to the overall project as it further ties the synergies of all the investments together.

Spanning almost 2,000m2, this Casino has been designed to the highest quality standards in the industry. Luxury, quality and entertainment are the overlying concepts in the venture where the focus will not be on hardened gaming but on the overall fun and entertaining experience.

A large lounge area with live entertainment will offer a different experience: “While we will service the local market, the prime target is the foreign tourist market. After the conclusion of these projects the group will own and operate over 630 rooms spanning from various types and qualities, the Casino is uniquely positioned to capitalize on the current tourism boom and the captive market within the properties and, in turn, the hotels are able to use the Casino to draw higher occupancies in the low and shoulder months.”

A memorandum of understanding is in place with an established European casino operator to manage the operations of the Casino. This company currently operates in seven European countries and is publically listed on two separate stock exchanges.

“Depending on the finalization of the Concession agreement we hope to be operational for summer 2015.”

Holiday Inn Express

The Group has recently purchased the Giorgianis Hostel adjacent to the InterContinental Malta. Permits are now in hand to demolish the existing hostel and to build a new 100 room hotel, branded Holiday Inn Express and operated by InterContinental Hotels Group.

The benefit will be that of a high quality hotel with the strength of an international brand. This new hotel will have all the mod cons expected nowadays including free WiFi, however it will focus more on quality accommodation and the experience. This hotel will appeal to the discerning business and leisure travelers wishing to stay at a quality operated establishment.

Several significant benefits and synergies also exist with this new project and our existing businesses. The two hotels will be linked from within allowing for access to the existing car park for deliveries and collections as well as for the staff coming to work. This will significantly reduce the traffic on the street and allow for cost efficiencies within the Group. The current timeline is to start works this month and complete the hotel by December 2015.

The Bay Arena

The recreation of the Bay Arena commenced in June this year and will be completed next month. The new venue includes seven, fully-furnished new meeting rooms with projection and 60 inch screens and a completely new main hall, seating over 1,200 people, with all the requirements for any kind of event. This venue will contribute to the InterContinental Malta’s existing meeting rooms and offers the kind of USP previously unavailable to the meeting space sector in Malta.

 With a state of the art technical installation including fiber optic cabling for high speed connectivity and CAT 7 cabling the Arena also offers IPAD and IPhone stations. The venue is expected to contribute significantly to the current hotels event portfolio and improve the attractiveness of Malta for this sector.