MGM China Holdings has been working on the Cotai Resort for a while, but it is now open in time for China’s Lunar New Year. The hotel resort complex cost $3.8 billion and is MGM China’s biggest resort so far. The resort casino resides on the Cotai Strip among other large gambling establishments.
MGM has told media are opening the resort was a “leap of faith” since their gambling concession is set to end in 2020. The CEO said the company needs to be resilient and show capacity, which means the company is putting its faith in the Macau market despite the challenges that exist because there is confidence the company, can overcome any roadblock in its way.
New Property Details
The MGM property has 1,390 rooms and suites. There are 1,248 standard rooms and 99 suites. The hotel also has 16 sky lofts and 27 apartment villas. The first guests are expected to arrive on Wednesday, February 14, 2018.
The casino will have 100 casino tables brought in new, along with 77 tables transferred from an older casino resort.
Analysts have troubling feelings about the new location. Morgan Stanley’s analyst Praveen Choudary said that Macau would see a revenue increase, but Grant Goversten from Union Gaming does not think MGM will be able to live up to their expectations instead creating bearish revenues.
Union Gaming’s analyst feels the revenue will be in the low double digits within the first two months, but this does not mean the company will continue showing high profits. Lunar New Year will help give the company a boost, but when the holiday is over things may change.
Additional Changes for Macau
Macau is allowing Studio City to have a three-year extension for their project on public land. There are still some regulations and licenses that need to be considered by Studio City’s Melco Resorts and Entertainment LTD Company; however, they do have an extension to continue with their construction. They are working to add a hotel with more amenities.
Macau is known for troubled waters due to recent government crackdowns by China and the Macau government. The junket operation changes have dramatically affected the “whales” coming to the city and spending money. But, it seems at least two companies are willing to put their money into new amenities to try and attract players back to the location. Positive news regarding the first couple of months for MGM may extend throughout the year depending on how desirable gamblers find Macau.