Sands China loses market share to rivals in Macau, analysts say

Analysts say Sands China’s hotel market share fell to 40 per cent after Galaxy launched Raffles and Andaz Macau.

Macau.- In an investment memo from Deutsche Bank, analyst Carlo Santarelli said Sands China is facing increased competition and losing its hotel market share in Macau.

Santarelli highlighted a decline in Sands China’s market share of hotel rooms, from 45 per cent to 40 per cent mainly due to the launch of new hotels, including Raffles and Andaz Macau by Galaxy Entertainment Group. Additionally, Studio City has also expanded its hotel offerings with the introduction of the W Hotel.

The increase in hotel room capacity in Macau, growing by 10 per cent since 2019, has raised expectations of growth in the mass gaming market. However, Santarelli suggested Sands China may see its market share fall.

Deutsche Bank’s data revealed that Sands China’s mass market share in the first half of 2023 decreased from 33.2 per cent to 31.6 per cent when compared to the same period in 2019. Santarelli noted that this was less significant than anticipated, considering the decline in room share and market conditions.

Deutsche Bank predicted that Las Vegas Sands (LVS) will match its 2019 Macau property EBITDA by 2025, with Macau margins exceeding 2019 levels by 2024.