Macau casino operator MGM China Holdings Ltd is to convert 160 standard rooms at its MGM Cotai property, into “about 60 suites”, said Kenneth Xiaofeng Feng, president and an executive director of the group.
That work, and creation of guest villas at the Cotai property (pictured), was due to be completed “by the end of next year,” he added.
Mr Feng was speaking on the Wednesday call to discuss the third-quarter earnings of MGM China and its parent, MGM Resorts International.
A September note from Goldman Sachs (Asia) Ltd, citing management comments, had mentioned the possibility of MGM China would convert 200 hotel rooms at its MGM Cotai property into 88 suites.
Cotai has seen a number of casino resorts recently adjust accommodation mix, including converting some standard rooms either to create larger rooms, or to make suites. A recent example was at The Londoner Macao, run by Sands China Ltd.
On Wednesday, MGM China’s Mr Feng also gave commentary on the group’s original Macau property, MGM Macau.
He stated: “MGM Macau is a 17-year-old property. Since the third quarter or about the middle of this year, we started a few very, very meaningful projects” to revamp the complex.
These included “the villas… an events centre and also our gaming floor refreshment programme and a couple of F&B outlets”.
He added: “The goal of our development is really to make sure all these products reflect the leading trends [preferences] of the customers.”
Mr Feng said that for MGM Macau, the company expects all the renovation projects “to be done by the middle of next year”.
“Once all these projects are finished, we all believe we are going to continue to lead the Macau peninsula market,” he stated.
Hubert Wang, MGM China president and chief operating officer, noted on the call: “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 온라인카지노사이트 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.”
Bill Hornbuckle, chief executive and president of MGM Resorts, said on the same call, regarding marketing competition in Macau: “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.”
Mr Feng had noted on the conference-line discussion: “We are very, very disciplined on giving promotions and incentives: we expect them to continue to be steady.”
He added, referring to earnings before interest, taxation, depreciation and amortisation: “We focus on incremental EBITDA dollars.”
Mr Hornbuckle stated that factors in third-quarter expenses in the Macau market included concession-related commitments to the Macau government. He mentioned the ‘Macau 2049’ show to be staged at MGM Cotai and due to open on December 15.
The MGM Resorts CEO observed: “That’s coming with expense. It’s a major show.”
There were also “expenses surrounded by launching a museum” at MGM Macau, as part of the Macau offer.
Mr Hornbuckle added: “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.”
According to a statement on the MGM Macau property’s website, the “Poly MGM Museum” will launch its first exhibition “The Maritime Silk Road” on Saturday (November 2).