In March, Regal Hotel announced a Memorandum of Agreement between it and Las Vegas Sands Corp. for the development of three four- and five-star hotels with a total of 3,950 rooms; a 130,000-sf casino; a 1,500-seat performance theater; a convention plaza; a 3-D IMAX theater; shopping and entertainment areas; and a hotel training school. According to the land grant application and the development proposal submitted to the Macau Government, the Regal plans to develop the mega scale hotel complex on 14 acres in Cotai, an area of reclaimed land between the Macau islands of Taipa and Coloane.

"By reason of certain material changes in the circumstances affecting some fundamental issues that had remained unresolved, the terms of the definitive agreements could not be agreed or finalized, and hence the MOA ceased to have effect," says Regal Hotels in a statement.

The plans are unchanged from those of the two-company venture. Subject to approval for the land grant from the Macau Government and all necessary permissions being obtained, construction work for the first phase of the project is anticipated to commence later this year or early next year, with completion expected by early 2008.