Shares of Emperor Entertainment Hotel, which has won shareholder approval to invest in Macau's entertainment market and change its name from Emperor (China Concept), surged 38.5 percent to close at HK$28.8 on Monday. Its shares have risen 2,089 percent since early 2004.

``As shown by our new company name, we will focus on hotel and entertainment-related business not only in Macau but also in Southeast Asia and Russia,'' executive director Vanessa Fan said after a shareholders meeting on Monday. ``We are mulling two to three hotel projects in Russia.''

Emperor Entertainment Hotel in November proposed to buy a commercial building in Macau for HK$645 million raised through a rights issue and shareholder loan.

After the deal is completed, the company will spend HK$350 million to redevelop the building into a five-star hotel with about 300 rooms and at least 60 gambling tables. Fan expects the casino to be opened by the end of 2005 and to break even within three years.

Fan said the group is not only bullish about the gambling and hotel market in Macau but also in Asia. Russia may be its first investment in the region outside Macau. As Russia is an emerging market, the project may pose higher risk, Fan said, adding that it also offers higher returns than Macau.

Fan said the entertainment and hotel business in Russia would continue to be strong on the back of its local economic growth and the boom of its neighboring countries, including China.

Economic growth in Russia reached 6.9 percent in the first nine months of 2004. Its economy is expected to grow 5.8 percent in 2005 and average 6.1 percent annual growth to 2007.

Fan said the company may consider acquiring a casino in North Korea along the Chinese border from another Yeung-controlled company, Emperor Group.

In November 2004 the company acquired a cruise ship, Golden Princess, from its substantial shareholder Albert Yeung for US$17 million (HK$132.6 million). Although the company has shifted its business focus from China, Fan said its only remaining property project in Shanghai will be kept for long-term rental returns.

She said the project will be jointly developed with another mainland property developer. Emperor Entertainment Hotel will provide the land, while its partner will bear the development cost of HK$500 million. ky.lee@globalchina.com