GGRAsia – Galaxy aims 2024 wrap on new Cotai hotel: Francis Lui

Galaxy aims 2024 wrap on new Cotai hotel: Francis Lui

Dec 13, 2023 Newsdesk Latest News, Macau, Top of the deck

Macau casino operator Galaxy Entertainment Group Ltd aims to complete within next year “a large part” of a new hotel at the Galaxy Macau casino resort on Cotai, said Francis Lui Yiu Tung (pictured), the firm’s deputy chairman. He didn’t specify when the new facility – referred to as “Phase 3D” – might open.

The new hotel – which he said was part of the group’s 2024 investment programme – would be run by a “world renowned” brand, taking to 10 the total of hotel brands his company promotes in Macau, the executive stated. He suggested it would be “an innovative hotel product that has not existed in Macau before”.

He added: “We estimate that [the new hotel] will bring not more than 100 [room keys]” to the market. “We hope that with the positioning of this special hotel, we can reach out to high-end consumers,” he added.

He was speaking to reporters on the sidelines of an official opening ceremony on Wednesday for the portion of Galaxy Macau Phase 3 already built and open. Those elements were introduced in stages. The 16,000-seat arena at the Galaxy International Convention Center launched in the spring, soon followed by two May performances by K-pop group Blackpink.

Phase 3′s The Raffles at Galaxy Macau hotel was made available initially for selected guests from the summer, with some facilities having a soft opening to the public in mid-August. Andaz Macau, a hotel attached to the convention centre, opened on September 15.

CBRE Securities LLC said in an August note – citing commentary from the casino group’s management – that construction of Phase 4 of Galaxy Macau was already “well under way” and would include more hotel space and a theatre.

Mr Lui was also asked on the sidelines of Wednesday’s ceremony about his firm’s 2024 plan for overall investment as part of its gaming-concession commitment to the Macau government.

The city’s Secretary for Economy and Finance, Lei Wai Nong, who attended the Wednesday event, had told the media last month that all six Macau operators had already submitted their respective concession-related investment execution plan for 2024.

For Galaxy Entertainment, the 2024 plan in terms of its concession pledges would entail “a lot of projects”, said Mr Lui.

2024 sports, other events

He stated: “They are mainly our entertainment events and sports events. We just announced that the World Cup [of men’s and women’s singles in table tennis] is to be hosted in April [2024], and the [2024] Women’s Volleyball [Nations League].

Kevin Kelley, chief operating officer Macau for Galaxy Entertainment, had flagged last month that in 2024 the company was due to host “over 50 major concert nights and 250 MICE [meetings, incentives, conferences and exhibitions] events”.

Mr Lui noted on Wednesday: “Hardware-wise, we will be continuing our investment…and our Phase 3D is the one where we will strive to complete a large part.”

He said Galaxy Entertainment was anticipating the Macau government would soon up the reinvestment threshold in the market, as anticipated under the new regulatory regime, when the city’s annual casino gross gaming revenue (GGR) reaches a certain level.

He stated: “As the MOP180 billion [US$22.37 billion threshold] may be reached this year, the government may begin to require us to top up our investment.

“After new year, we need to consider what we should do about this top-up investment, including the refreshment of our existing hotels. Once we have more concrete details about this, we will introduce it to the public,” said Mr Lui.

For the current 10-year concession, Galaxy Entertainment has presently pledged to the government an overall investment of MOP28.4 billion, of which an estimated MOP27.5 billion – or 96.8 percent – will go to non-gaming and exploring foreign customer markets.

Under the concession framework, the Macau government could require Galaxy Entertainment to increase its investment in non-gaming and exploration of foreign customer markets by up to 20 percent, or circa MOP5.5 billion.