Macau resort updates
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New rules and regulations are wiping value from foreign-invested hotels in Macau and could change the future of some of the resorts.

Authorities in the Chinese territory unveiled the biggest shock to the sector since the start of the pandemic: a sweeping proposal to increase oversight that could wrest control of the lucrative industry away from foreign shareholders.

The news wiped $20bn off the value of listed gambling operators, which include Sands China, MGM China, and Wynn Macau. An index that tracks the industry recorded its worst day on record. Industry executives and analysts were blindsided by the extent of the proposed restrictions, which could force them to impose deep changes to their business, including appointing government supervisors to enforce official policy from within. Gaming licence renewals were also not guaranteed.

Casino operators met Macau government officials on Monday, their only scheduled meeting during a 45-day consultation period on the legislation.

The meeting was called so abruptly that descendants of the late casino mogul Stanley Ho, including his daughters Pansy and Daisy who have taken over his holdings, and his son Lawrence, head of Melco Resorts in Macau, were unable to rush back to the Chinese territory in time.

Source: https://www.ft.com/content/417f2513-37b2-4900-ac36-4729df36ae1b

Good news for Macau it seems...

In Macau and aggregated gross gaming revenues for August reportedly increased by some 234% year-on-year to top $554.49 million despite the disruption associated with a minor outbreak of coronavirus in neighboring China.

According to a report from Inside Asian Gaming citing official information from the Gaming Inspection and Coordination Bureau regulator, the figure for the 31-day period represented the seventh consecutive month of year-on-year improvements and took the former Portuguese enclave’s associated eight-month tally up by 70.1% to approximately $7.72 billion.

Source: https://news.worldcasinodirectory.com/macau-gaming-revenues-chalk-up-august-advance-despite-sequential-setback-96533

The Londoner Macau opened in July but some parts are still awaiting their grand opening and construction is still ongoing.

Macau casino operator Sands China Ltd is to have a “full opening” for Londoner Court, with its 300-plus accommodation units, in time for October Golden Week, said on Friday Wilfred Wong Ying Wai (pictured), the firm’s president and an executive director. Londoner Court, at the Londoner Macao, the revamped, British-themed, Cotai casino resort formerly known as Sands Cotai Central, will offer serviced-apartment type living, geared for “high-end clientele” and families, said Mr Wong.

The executive reiterated that the rest of the Londoner Macao, including the exteriors – such as the scale replica of the Palace of Westminster’s Elizabeth Tower, known popularly as ‘Big Ben’ – would be completed in coming months. Mr Wong further stated that with a 6,000–seat arena to be completed at the resort in the first quarter of next year, “everything at the Londoner” would be completed.

Source:
https://www.ggrasia.com/londoner-court-at-londoner-macao-open-by-oct-golden-week/
https://www.londonermacao.com/macau-attractions.html
https://www.trip.com/hotels/macau-hotel-detail-69459366/the-londoner-hotel

Early in the Blue Sky Concept Design phase of Studio City Macau, one idea explored was a Titanic-themed central lobby.

In addition to a grand lobby inspired by that of the famed vessel, this space also would have featured a 'dry-for-wet' sunken Titanic miniature set beneath a thin layer of water.

Throughout this space, guests would also have been able to enjoy replica's of Titanic's bars and First Class Dining Room.

Studio City Macau recently opened a brand new rooftop Water Park supplied by WhiteWater West.

During the resort's planning stage, one option explored was that of a unique Lazy River attraction themed to the Monkey King. The concept was developed by Legacy Entertainment- the resort's overall design firm.

The first two phases of Galaxy Macau had five themed hotels. Phase 3, now under construction, will add 1,500 hotel rooms, some casino space, the 16,000 seat “Galaxy Arena” and 37,000 sq m of conference and exhibition space. Phase 4 will add 2,000 hotel rooms but little gaming area.

Under the legally-binding letter of intent signed with China Construction, work is expected to take 1,053 days – just under three years – to complete. When phases three and four are complete, the resort will double in size to 2 million sq m, making it one of the world’s largest leisure and conference destinations.

Source: https://www.globalconstructionreview.com/news/macau-casino-appoints-china-construction-contracto/

Galaxy Entertainment Group hires construction firm, flags commencement of Galaxy Macau Phase 4 development

Macau’s Galaxy Entertainment Group (GEG) has entered into a legally binding Letter of Intent with China Construction that will see the latter provide construction and related services for Galaxy Macau’s Phase 4 development at a cost of MOP$13.01 billion (US$1.63 billion).

According to information filed with the Hong Kong Stock Exchange overnight, China Construction – a subsidiary of China State Construction International Holdings Limited operating mainly in Macau – will provide “construction and related services including but not limited to management, temporary works, general facilities and attendance, application and management of labour quota; construction of basement box structure, structural carcass, link bridges; and construction and completion of all specialist work packages through nominated subcontractors/suppliers and/or direct contractors,” for Galaxy Macau Phase 4.

Source: https://www.asgam.com/index.php/2021/02/22/galaxy-entertainment-group-hires-construction-firm-flags-commencement-of-galaxy-macau-phase-4-development/

As of the end of 2020, there were some 17 hotel developments under construction, which, representing some 8,607 rooms to be added to the local market, according to data from the Land, Public Works and Transport Bureau (DSSOPT).

In total, all 177 projects cover some 482,360 square metes of the gross construction area and will add some 4,234 light vehicle and 1,198 motorbike parking spaces.

The Sands China revamp of Sands Cotai into The Londoner is set and add some 594 suites and 368 service apartments, while SJM’s Grand Lisboa Palace to offer 2,000 hotels in its three hotels and the nearby Lisboeta Hotel to add some 539 rooms. All three properties are scheduled to have some kind of phased opening starting from February of this year.

Source: https://www.macaubusiness.com/under-construction-hotel-projects-to-add-8607-extra-rooms

Analysts at investment bank Morgan Stanley have labelled the current price of Macau gaming stocks as too low, suggesting prices are certain to rise in late 2021 and into 2022 on capacity expansion, concession extension and rising demand from Chinese luxury consumers.

In a Friday note, Morgan Stanley’s Praveen Choudhary, Gareth Leung and Thomas Allen lower their 2021 Macau GGR estimates by 10% to MOP$189 billion (US$23.6 billion) due to travel remaining sluggish, but increase their 2022 GGR and EBITDA estimates, with EBITDA now expected to be 8% higher in 2022 than in 2019 at US$10.27 billion due to mix improvement and cost cutting during the COVID-19 pandemic.

According to Morgan Stanley, there is considerable upside potential for Macau in three key areas. They include Macau’s gaming concessions, all due to expire in mid-2022 but which the analysts expect to be extended by three years and announced in mid-2021.

Also notable is new hotel room capacity, with three major new developments due to open in 2021 by way of Grand Lisboa Palace with 1,900 rooms, Galaxy Phase 3a with 800 rooms and The Londoner Macao which partially opened in 2020.

Source: https://www.asgam.com/index.php/2021/01/11/macau-gaming-stocks-seen-gaining-value-in-2h21-as-concession-extension-new-hotel-room-supply-drives-gains/

Sands China is recreating famous London streets along with retail and dining experiences at the Macao’s Cotai Strip. Called ‘The Londoner Macao’, the development is expected to become a new destination for retail and dining experiences in the territory beside its luxury hotel network.

“The moment visitors step foot on the sunlit retail district of The Londoner Macao, they will feel transported to London’s classic shopping streets: chic boutiques at Bond Street, Mayfair and Savile Row, and quaint stores in Soho and Covent Garden,” the company said in a statement. Construction of the retail mall is already underway and will be completed next year.

Source: https://insideretail.asia/2020/12/17/countdown-begins-to-londoner-macao-opening-including-retail-strip/