Full GLP opening should depend on demand, analyst says

According to Union Gaming, the opening of the hospitality area in the resort will depend on a rise in the number of visitors to Macau.

Macau.- The full opening of the hotel Grand Lisboa Palace scheduled for the first quarter of 2021 could be delayed due to the lack of visitors in Macau.

Analysts at the brokerage Union Gaming believe the hotel should not open until significant demand returns to the SAR.

Considering the plunge in visitation, analysts consider it would be better to begin with a partial opening of the resort until tourism recovers.

The brokerage said: “All construction is completed and the final inspection and approval processes are underway. The property already has in-house casino staff and much of the staffing for the casino is done. Management will look to staff the hospitality segments closer to their opening.

“Given the current environment, we are expecting a slower ramp throughout 2021 and looking forward to 2022 as the first full year of operations.”

As for the financial position of SJM Holdings, which operates the Grand Lisboa Palace, Union Gaming predicts a modest recovery throughout the fourth quarter. However, it noted that it would be difficult without automated visa issuance and improved liquidity and capital outflow from China.

The analysts said: “As it relates to capital controls, SJM hasn’t seen any impact on the mass market yet but said it was hard to assess given the sharp pick up in business after complete closures.

“However, the company did suggest it would be willing to provide credit for premium mass and direct VIP when Grand Lisboa Palace opens”.

Union Gaming forecast that by 2022 Grand Lisboa Palace could be reporting up to HK$1.86bn in EBITDA.