Franco Liu has suggested that potential closures could also affect the debt and credit positions of investors.<\/p>\n\n\n\n\n\n\n\n
Macau.- Franco Liu<\/strong>, managing director of Savills (Macau), has predicted that the closure of Macau’s satellite casinos could cause the value of the associated hotels to fall by more than 60 per cent. In an interview with the Macao Daily News, Liu said the closures could also affect investor’s debt and credit positions.<\/p>\n\n\n\n Macau has 11 satellite casinos. Nine are operating under SJM Holdings, one under Galaxy Entertainment Group and one under Melco Resorts & Entertainment. According to Macau\u2019s revised gaming law<\/a>, the venues have until December 31, to transition to a management company arrangement, under which they won\u2019t share gaming revenue but will receive a management fee from the concessionaire. In January, a satellite casino operator<\/a> told Macau Daily News: that concessionaires were waiting for guidance and that the stance on management fees could determine whether satellite casinos survive or shut down.<\/p>\n\n\n\n Liu noted that casinos were taken into account when the associated hotels took loans. He suggested that some may find that some of the hotels may find that loans surpass the property’s value without a casino, potentially harming their financial leverage.<\/p>\n\n\n\n Savills Macau estimates outstanding loans for Macau satellite casinos and related businesses that depend on casino traffic total between HK$25bn (US$3.2bn) and HK$39bn (US$5bn). Around 13,500 people currently work in gaming, hotel services, and related businesses connected to the satellite casinos.<\/p>\n","protected":false},"excerpt":{"rendered":" Franco Liu has suggested that potential closures could also affect the debt and credit positions of investors.<\/p>\n","protected":false},"author":176,"featured_media":777014793,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Franco Liu of Savills (Macau) predicts that the closure of Macau's satellite casinos could lead to a >60% fall in associated hotel values and negatively impact investor debt and credit positions. This stems from Macau's revised gaming law, which mandates a transition to a management fee model by December 31, potentially leaving HK$25bn-HK$39bn in outstanding loans vulnerable and affecting 13,500 jobs.","focusai_entities":"Franco Liu, Savills (Macau), SJM Holdings, Galaxy Entertainment Group, Melco Resorts & Entertainment, Macao Daily News","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.95), regulator (0.9), compliance_legal (0.7), operator_casino (0.95), investor_analyst (0.98), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Satellite Casino Debt Impact?","query":"What specific mechanisms are being considered by Macau's financial institutions to mitigate the projected HK$25bn-HK$39bn in outstanding loans tied to satellite casinos, particularly concerning potential loan-to-value breaches?"},{"label":"Concessionaire Management Fees?","query":"How are the major concessionaires (SJM, Galaxy, Melco) structuring their proposed management fee arrangements for satellite casinos, and what is the anticipated impact on their NGR and EBITDA margins?"}],"footnotes":""},"categories":[157,16338],"tags":[23906],"class_list":["post-777024370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024370","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=777024370"}],"version-history":[{"count":5,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024370\/revisions"}],"predecessor-version":[{"id":777024387,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024370\/revisions\/777024387"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777014793"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777024370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777024370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777024370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}