Emperor Entertainment Hotel inks increased service fee deal with SJM
The deal follows strong growth in visitor arrivals to Macau.
Macau.- Emperor Entertainment Hotel has announced that it will increase the maximum amount it can receive from SJM for the service fee associated with the Grand Emperor Hotel. In a stock filing to the Hong Kong stock exchange on Thursday (January 25), the company said the revised annual cap was in response to rise in visitor arrivals and GGR.
For the financial year concluding on March 31, 2024, Emperor Entertainment Hotel has announced a rise in the annual cap for the service fee from HK$400m to HK$600m. The maximum payable by SJM for the next financial year, terminating on March 31, 2025, has been raised from HK$600m to HK$1bn. The annual cap has been raised from HK$700m to HK$900m for the nine-month period ending December, 31, 2025.
The company disclosed that, for the nine months concluding December 31, 2023, the transaction amount of service fees had exceeded 85 per cent of the existing annual cap for current financial year.
Macau registered 28.2m visitor arrivals in 2023, with a daily average of circa 77,000 tourists. This figure was up 394.9 per cent year-on-year and was equivalent to 70 per cent of pre-pandemic 2019 levels.
