Macau casino operator MGM China Holdings Ltd is converting former VIP junket areas at its MGM Macau property (pictured) into villa accommodation with 28 units, and turning 200 hotel rooms at its MGM Cotai property into 88 suites.
That is according to Goldman Sachs (Asia) Ltd, following a recent visit to the Macau market with investors, and which involved discussions with gaming operator managements.
The MGM China accommodation unit work is “scheduled for completion sometime next year… perhaps to better compete with the new high-end offerings by Sands and Galaxy,” wrote analysts Simon Cheung, Alpha Wang, Leah Pan and Dorothy Wong in a research note.
They were referring latterly to two of MGM China’s market rivals, namely Sands China Ltd, which has been converting the former Sheraton Macao at the Londoner Macao, into a suite-focused high-end hotel called the Londoner Grand, due to open in the fourth quarter; and Galaxy Entertainment Group Ltd, which is due to open next year a new luxury hotel branded Capella at Galaxy Macau, at its flagship Galaxy Macau property also in the Cotai district.
Goldman Sachs added that Galaxy Entertainment “plans to open a new premium slot area in late September” at Galaxy Macau.
Such a move would coincide with the October Golden Week holidays in mainland China, a peak business period for the Macau gaming industry. This year the holidays run from October 1 to October 7 inclusive.
