Donaco International Ltd. reached an agreement in principle to raise its stake in the Lao Cai International Hotel to 95 percent from 75 percent by buying all but 5 percent of the stake held by the Vietnamese government for $4 million. The Australian-listed company said completion may take three months. Donaco is constructing a new 428-room hotel building to succeed its small casino hotel in Vietnam near the Chinese border which now has eight tables, 57 slot machines and 34 rooms.
The company said this month that it would now aim to reach a five-star standard with the new hotel, instead of four star, which it said would raise the cost to $52 million from $43 million but bring in significant room, beverage and bar revenues and better position the company in seeking permission to add tables. It expects to be licensed for at least 16 but the new gaming area is designed to hold up to 32 main floor tables and eight in VIP salons.