SJM L’Arc acquisition a “good deal”, says JP Morgan
The HKD1.75bn price works out as HKD6.2m per key.
Macau.- Investment banking firm JP Morgan has described SJM Holdings’ HKD1.75bn (US$224.8m) agreement to purchase L’Arc as “a good deal” given its location on the Macau Peninsula.
The hotel currently hosts one of SJM’s satellite gaming operations, Casino L’Arc Macau. Describing the venue as a key part of its “core peninsula cluster,” SJM has decided to acquire the property, with the deal expected to be finalised on December 18. JP Morgan analysts say the move could enhance SJM’s profitability in the 2026 fiscal year.
The HKD1.75bn price for L’Arc, which has 283 rooms and small retail and car parking, works out to HKD6.2m or US$0.8m per key. JP Morgan says that’s an “attractive valuation” and noted that the property does not need a major renovation as its room quality and offerings are “somewhat comparable” with SJM’s existing properties on the peninsula.
SJM’s says L’Arc generated HKD1.4bn (US$179.8m) in GGR for 2024 and HKD1.3bn (US$166.9m) for the first 10 months of 2025. That’s from 45 gaming tables.
JP Morgan projects that the property could “lift SJM’s 2026 EBITDA by 8 to 9 percent at its current run-rate,” with potential for further growth if SJM increases the number of tables, as L’Arc has the capacity to accommodate 90 to 100.
