MGM delays Cotai casino expansion
The MGM Cotai will undergo an expansion but operator MGM China Holdings CEO Grant Bowie says it won’t happen before 2021.
Macau.- MGM China Holdings Ltd CEO Grant Bowie has talked about the MGM Cotai expansion plan. During an earnings call, the executive advanced that the casino expansion is not likely to happen before 2021.
“We’re… starting on a very preliminary phase two expansion strategy” for MGM Cotai, Mr Bowie said, as GGRAsia quoted. “We’re now working through that in terms of product mix, product requirements, etc.”
He added it is “not likely” for the company to invest into the MGM Cotai expansion “until around 2021, 2022.”
Macau forecasts
Bernstein Research has changed its forecast for July’s gross gaming revenue (GGR) for Macau. The brokerage said that it changed this month’s figures due to an expected lower VIP hold.
Bernstein said that according to channel checks, gross gaming revenue from July 14 to 21 was €1.8 billion. The average daily rate was €89.6 million. Month-to-date ADR has increased 2% from June and 1% down from the same month last year.
“VIP volume is estimated to be down mid-single digits m/m with the hold rate towards the lower end of the normalised range. Mass GGR is estimated to be up mid-single digits percentage month to month.”
The brokerage then lowered its estimate for GGR growth from flat to 2% in July, which is down from 6% to 8%. “One area of potential high-end GGR stabilization and renewed strength may come from a recovering credit cycle in China which may support VIP recovery in the second half of the year.”
