Palazzo Versace Macau<\/strong> had a soft opening in late April, but BofA Securities analysts Ronald Leung, Candice Zhang, and Yoyo Pang said the occupancy rate remains capped at 70 per cent due to labour shortages. <\/p>\n\n\n\nThey added that SJM Holdings remains focused on its goal of achieving EBITDA breakeven for the Grand Lisboa Palace in the third quarter, provided it secures a market share of 2.5 per cent. <\/p>\n\n\n\n
Meanwhile, JP Morgan analysts <\/strong>DS Kim and Mufan Shi highlighted the challenge faced by SJM Holdings at the venue. They say the property’s location and lack of destination appeal have hindered its ability to attract a critical mass. <\/p>\n\n\n\nWith the decline of junkets, the company must establish its own high-end business<\/strong>, specifically targeting premium mass and direct VIP segments, which may prove challenging due to SJM’s limited experience and database in this area.<\/p>\n\n\n\nHowever, the company is expected to benefit from cost-saving efforts during the Covid-19 pandemic. Analysts predict that by 2024, SJM’s all-in operating expenses will be only 5 per cent to 10 per cent higher than pre-pandemic levels despite the additional capacity at Grand Lisboa Palace.<\/p>\n","protected":false},"excerpt":{"rendered":"
The company plans to operate all 1,892 rooms.<\/p>\n","protected":false},"author":176,"featured_media":20947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"SJM Holdings anticipates Grand Lisboa Palace in Macau will reach full operational capacity by year-end, targeting Q3 EBITDA breakeven contingent on securing a 2.5% market share. The resort faces challenges including labor shortages capping occupancy, a less advantageous location, and the necessity to cultivate premium mass and direct VIP segments following the decline of junket operations, an area where SJM has limited prior experience.","focusai_entities":"SJM Holdings, Grand Lisboa Palace, BofA Securities, Palazzo Versace Macau, Ronald Leung, Candice Zhang, Yoyo Pang, JP Morgan, DS Kim, Mufan Shi","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), marketing_crm (0.75), investor_analyst (0.95), journalist_researcher (0.85)","focusai_suggestions":[{"label":"GLP Market Share Strategy","query":"What specific marketing and operational initiatives is SJM Holdings implementing to achieve the 2.5% market share target for Grand Lisboa Palace, particularly in the premium mass and direct VIP segments, given its stated limited experience and database?"},{"label":"Labor Shortage Mitigation","query":"What are SJM Holdings' detailed strategies and timelines for mitigating the labor shortages impacting Grand Lisboa Palace's occupancy rates, and what is the projected impact on the Q3 EBITDA breakeven target if these shortages persist?"}],"footnotes":""},"categories":[157,16338],"tags":[23808],"class_list":["post-777005255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-grand-lisboa-palace"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777005255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777005255"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777005255\/revisions"}],"predecessor-version":[{"id":777005299,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777005255\/revisions\/777005299"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/20947"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777005255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777005255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777005255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}