SJM Holdings raises annual cap for hotel charges

SJM Holdings has increased the maximum amount it will pay to its parent company, STDM.

Macau.- SJM Holdings has revised its annual cap for hotel charges. In a disclosure to the Hong Kong Exchange, the company noted an adjustment from HK$47.3m (US$6m) to HK$65m for the fiscal year concluding on December 31, 2023.

This decision is in response to a rise in guest arrivals at Sociedade de Turismo e Diversões de Macau, S.A. (STDM)-owned hotels during the initial three quarters of 2023. The cumulative expenditure on hotel accommodation services during the first three quarters reached approximately HK$29.5m, accounting for 62.4 per cent of the initially established annual cap.

Sequentially, the recorded expenditure on hotel accommodation has seen a consistent upward trajectory in 2023. From HK$4.6m in the first quarter, it reached HK$8.2m in the second quarter and HK$16.7m in the third. 

In Macau, SJM operates Casino Grand Lisboa Palace, Casino Grand Lisboa, Casino Lisboa, Casino Oceanus at Jai Alai. Nine casinos are operated by third parties. SJM provides free hotel accommodation to select guests in order to attract gaming patrons and guests to these casinos.

Hotels owned by STDM are included in the revised agreement: Hotel Lisboa Macau, Hotel Sintra Macau, Grand Coloane Resort, Macau, and Artyzen Grand Lapa Macau.

SJM Holdings has posted net gaming revenue of HK$5.41bn (US$693m) for the third quarter of the year, up 492 per cent year-on-year, and a loss attributable to owners of HK$410m (US$52.5m), down 78.4 per cent.