• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau mass-market GGR boosted by hotel supply: DB

Aug 16, 2019 Newsdesk Latest News, Macau, Top of the deck  


Macau mass-market GGR boosted by hotel supply: DB

Brokerage Deutsche Bank Securities Inc reckons that, on average, the rate of growth in mass-market gross gaming revenue (GGR) in Macau casinos each year is more than twice the rate of growth in the number of hotel rooms in the city the year before – if the number of hotel rooms grew by at least 4 percent.

The stockbroking arm of Deutsche Bank issued on Thursday a note saying history shows that the relationship between growth in casino GGR and new supply in the casino gaming market in Macau, as gauged by the number of hotel rooms there, is most noticeable in the mass market.

The note said of growth in mass-market GGR: “While mass has been strong for the vast majority of the period since 2011, the influence of new supply is clearly evident. In the years following hotel room supply growth of 4 percent or more, mass GGR has grown, on average, at 2.2 times the rate of the preceding year’s supply increase.”

Taking into account the progress of projects to expand casino resorts in Macau, Deutsche Bank forecasts that the number of hotel rooms in the market will grow by about 1 percent in 2019, by about 11 percent in 2020 and by about 7 percent in 2021.

The memo also notes that a few large-scale projects, such as the Grand Lisboa Palace from casino operator SJM Holdings Ltd, and the expansion of Galaxy Macau from Galaxy Entertainment Group Ltd, “both have slipped with respect to their opening dates”.

“With GGR trends largely stable, with mass-driven or margin-enhancing revenue outpacing the more volatile VIP segment by a wide margin, we believe the current supply forecast is far less intimidating than it has been at any point over the last four years or so,” wrote Deutsche Bank analysts Carlo Santarelli and Steven Pizzella.

They added: “While the hotel capacity outlook accelerates, it’s worth noting that of the about 7,100 rooms expected to come online in 2020/2021, about 73 percent will do so without explicitly noted incremental gaming capacity.”


  • tweet
Related articles
  • Macau gaming tax revenue US$1.3bln for Jan-Apr period
    Macau gaming tax revenue US$1.3bln for...

    May 19, 2022  

  • Macau repeat visitors denied visa by China says Bernstein
    Macau repeat visitors denied visa by...

    May 16, 2022  

More news
  • Foreign tourists can get S.Korean peninsula visa from June 1
    Foreign tourists can get S.Korean...

    May 20, 2022  

  • Crown Resorts’ shareholders nod Blackstone bid
    Crown Resorts’ shareholders nod...

    May 20, 2022  


Latest News

Foreign tourists can get S.Korean peninsula visa from June 1

Foreign tourists can get S.Korean peninsula visa from June 1

May 20, 2022  

South Korea on Thursday said it would from June 1 resume issuing short-term tourism visas for trips to the country’s mainland, for individual visitors and groups of tourists. Permits for...
Read More
Crown Resorts’ shareholders nod Blackstone bid

Crown Resorts’ shareholders nod Blackstone bid

May 20, 2022  

JP Morgan ups Aristocrat profit forecast 8pct for FY2022

JP Morgan ups Aristocrat profit forecast 8pct for FY2022

May 20, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”[Revenue at Okada Manila] will be around 80 percent of the pre-pandemic level in 2022 before recovering almost fully in 2023"

Satoru Aoyama, Akash Gupta and Kalai Pillay

Analysts at credit rating agency Fitch



Most Popular

  • Melco to launch family attraction at Studio City in JuneMelco to launch family attraction at Studio City in June May 19, 2022
  • Andrew Lo takes controlling stake in Suncity, Summit AscentAndrew Lo takes controlling stake in Suncity, Summit Ascent May 19, 2022
  • Fitch flags Universal Ent founder spat, upgrade on Manila IRFitch flags Universal Ent founder spat, upgrade on Manila IR May 20, 2022
  • Foreign tourists can get S.Korean peninsula visa from June 1Foreign tourists can get S.Korean peninsula visa from June 1 May 20, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us