China – Melco’s non-gaming Guangdong resort could strengthen its Macau licenceBy Phil - 25 June 2021
Brokerage firm Sanford C. Bernstein believes Melco Resorts will receive a boost from Melco International’s non-gaming resort in Zhongshan, a city close to Macau, in Guangdong province, as it ties in with the Chinese government’s wish for gaming company’s to diversify their offerings.
The Zhongshan resort will include hotels, restaurants and theme parks. and should be operational by 2025.
Bernstein analysts Vitaly Umansky, Louis Li, and Kelsey Zhu said: “While Melco Resorts is not directly involved in this development, we see several longer-term impacts with respect to Melco Resorts. Melco’s commitment to developing non-gaming (in this case a theme park) in the greater Macau area should help its positioning with respect to Macau gaming concession rebidding.”
“While the project will not open before 2025, once in place, it can provide a co-marketing opportunity for Melco Resorts casino properties in Macau,” they added. “It could potentially help with Melco Resort’s bid in Yokohama, as it highlights the Melco group’s ability to do large scale non-gaming developments.”