Melco brings Macau’s first W Hotel to Studio City Phase II
Melco Resorts & Entertainment has revealed it has entered into a strategic partnership with Marriott International to bring the W Hotels brand to Studio City Phase II.
Macau.- Casino operator Melco Resorts & Entertainment has confirmed that it will bring the W Hotels Worldwide brand to Studio City Phase II after signing a partnership with Marriott International. The company said W Macau – Studio City will complement Studio City’s other hospitality offerings, which include one of Asia’s largest indoor and outdoor water parks, shows, and state-of-the-art MICE space.
W Macau – Studio City is expected to feature 557 guestrooms, including 127 suites and wellness facilities, a spa, fitness centre and indoor swimming pool.
David Sisk, chief operating officer for Macau Resorts of Melco Resorts & Entertainment, said: “Melco is thrilled to welcome W Hotels to Studio City and Macau. W Hotels is without a doubt one of the world’s iconic luxury lifestyle brands that will elevate Studio City’s hospitality offerings to a new level.”
The casino operator recently announced it is advancing with Studio City casino resort’s Phase II and expects to complete the development before the deadline it requested in May. The deadline was extended to December 27, 2022, from the original date of May 31, 2022.
Moody’s downgrades Melco outlook
The credit ratings agency Moody’s has downgraded Melco Resorts Finance Ltd’s corporate family rating and senior unsecured ratings from ‘Ba2’ to ‘Ba3’. It says Melco Resorts’ adjusted debt, including lease liabilities, will increase from US$6.1bn at the end of 2020 to nearly US$7.6bn over the next 12 to 18 months.
The ratings agency has also forecast that Macau mass-market GGR will reach only 60 per cent of pre-pandemic levels in 2022 and will not fully recover until 2023. Moody’s predicted that VIP gaming revenue would remain below 2019 levels in 2023 due to increasing regulatory scrutiny over the segment and the weakened junket sector.
Analysts said: “The rating downgrade reflects our expectation that Melco group’s debt levels and leverage metrics over the next few years will be substantially higher than pre-pandemic levels, because of the slow recovery in earnings amid lingering travel restrictions and sizeable capital spending.”
