MGM China considers expansion of Cotai IR

06/21/24

The company is said to be in talks with consultants and designers about a possible new wellness-themed building.

Macau.- MGM China is reported to be analysing a possible expansion at its resort in Cotai. Business Times reports that the company is in discussions with consultants and designers about adding a new wellness-themed building that could help it attract a broader clientele beyond gamblers.

The expansion could include several hundred additional hotel rooms, along with spas and health treatment services. Currently, MGM China has around 2,000 rooms in Macau, the smallest hotel portfolio among the six casino operators in the city.

MGM China has been aiming to expand its non-gaming offerings and attract more mass-market tourists, particularly premium mass. Its share of gaming revenue increased from 10 per cent in 2019 to 17 per cent in the first quarter of this year supported by an increase in gaming tables, early adoption of smart tables and upgrades to resort facilities,

For the first three months of the year, the company posted a net revenue of HK$8.3bn (US$1.06bn). The figure was up 70.6 per cent in year-on-year terms and was 143 per cent of pre-Covid-19 figures. The casino operator reported record-high adjusted EBITDA of HK$2.5bn (US$320m), a 77.3 per cent rise compared to the first quarter of 2023 and 155 per cent of the first quarter of 2019.

This week, Moody’s Investors Services assigned a B1 rating to the operator’s forthcoming senior unsecured senior notes issuance. MGM China plans to issue US$500m in new unsecured senior notes to professional investors. Net proceeds will be used to repay a portion of the amounts outstanding under the firm’s revolving credit facility and for general corporate purposes.

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