Hong Kong-listed Macau casino operator SJM Holdings Ltd has upped by more than a third the 2023 cap arrangement it has with its privately-held parent STDM SA, for hotel accommodation services.
The cap for the current calendar year has been raised by 37.4 percent, to HKD65.0 million (US$8.3 million) from HKD47.3 million. Caps for 2024 and 2025 respectively, stay as they were.
The 2023 revision was “in view of the strong growth in visitor arrivals leading to strong growth in occupancy at the STDM hotels during the first three quarters of 2023,” said Friday’s filing.
The 2023 arrangement includes free-of-charge hotel accommodation provided by SJM Holdings at STDM-managed properties.
The annual cap represents the maximum amount payable by SJM Holdings to certain hotels including a number owned by the STDM group: Hotel Lisboa Macau (pictured), Hotel Sintra Macau, Grand Coloane Resort, Macau and Artyzen Grand Lapa Macau; for hotel room charges attributable to SJM Holdings’ “selected gaming patrons and guests”.
Such service is “in order to attract gaming patrons and guests” to the group’s casinos, stated the filing.
Hotel Lisboa houses an SJM Holdings casino within the property’s structure, but the hotel itself is controlled by STDM.
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