MGM Cotai converts 160 rooms into suites. Macau casino operator MGM China Holdings Ltd plans to turn 160 regular rooms into “about 60 suites,” according to Kenneth Xiaofeng Feng, the group’s president and executive director.
He stated that the construction of guest villas at the Cotai site (seen) was scheduled to be finished “by the end of next year.”
During the Wednesday call, Mr. Feng was discussing MGM China’s and its parent company, MGM Resorts International, third-quarter earnings.
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MGM China may turn 200 hotel rooms at its MGM Cotai resort into 88 suites, according to a September note from Goldman Sachs (Asia) Ltd that cited management comments. MGM Cotai converts 160 rooms into suites.
Recently, several casino resorts in Cotai have changed the mix of accommodations, changing some regular rooms into suites or larger rooms. A recent instance occurred at Sands China Ltd.’s The Londoner Macao.
Mr. Feng of MGM China also provided insight on MGM Macau, the group’s initial Macau property, on Wednesday.
“MGM Macau is a 17-year-old property,” he said. We have been working on some really important initiatives to renovate the complex since the third quarter, or roughly the middle of this year.
The villas, an events center, our gaming floor refreshment program, and a few food and beverage establishments were among them.
“The main objective of our development is to ensure that all of these products represent the leading trends [preferences] of the customers,” he continued.
According to Mr. Feng, MGM Macau anticipates that all of the refurbishment projects will be completed “by the middle of next year.”
He added: “Once all these projects are finished, we all believe we are going to continue to lead the Macau peninsula market.”
During the call, Hubert Wang, the president and chief operating officer of MGM China, stated: “I think that some of the projects that we’re working on currently such as expansion of high-end gaming area at MGM Macau… the renovation of the villa product at MGM Macau and also the conversion [to] the suites at MGM Cotai… they’ll put us in a better position competitively in this market.“
“When these projects come into completion and fruition in the second half of next year, we expect the margin to continue to improve.”
During the same call, MGM Resorts’ president and CEO, Bill Hornbuckle, stated the following about Macau’s marketing competition: “I have been led to believe – and do [believe] – that the promotional environment actually lessened in the context of expense, [compared] with some of the programming that was going on earlier in the year.”
During the conference call, Mr. Feng had made the following observation:“We are very, very disciplined on giving promotions and incentives: we expect them to continue to be steady.”
In reference to profits before interest, taxes, depreciation, and amortization, he continued:“We focus on incremental EBITDA dollars.”
According to Mr. Hornbuckle, concession-related commitments to the Macau government were one of the factors influencing third-quarter market expenses in Macau. He cited the “Macau 2049” exhibit, which is scheduled to premiere on December 15 at MGM Cotai.
The MGM Resort CEO said: “That’s coming with expense. It’s a major show.”
The Macau offer reportedly included “expenses surrounded by launching a museum” at MGM Macau.
Mr Hornbuckle concluded: “It’s an amazing museum once anybody and everybody sees it. And so while we’re excited by those [non-gaming offers] and hopefully delivering on the promise we made to the government, they do come with some expense.”
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