China – MGM to boost VIP as well as mass with MGM CotaiBy Phil - 20 September 2017
Despite promoting its soon-to-open MGM Cotai as a mass gaming property, MGM China has said it will also help to boost its share of VIP play having seen VIP revenue fall by 1.9 per cent in the first half of 2017.
The Las Vegas-based operator said the property will open by the end of the year.
“We expect to improve our competitiveness in the Macau market following the completion and opening of our new MGM Cotai property,” it said. “We will pursue additional VIP business opportunities. We continue to review our business relationship with each of our gaming promoters and identify potential gaming promoters to grow our VIP business.”
MGM Chairman Jim Murren said: “2016 has been a year of stabilisation and development both for the Macau marketplace and for our Company. Macau gross gaming revenue finished with a slight decline of 3.3 per cent from last year and reached HK$216.7bn. Importantly, the market showed improvement as the year went on with gross gaming revenue in the second half up six per cent year over-year. Mass gaming revenue was also a bright spot with estimated growth of seven per cent in 2016. The solid recovery in mass market allows us better footing as we prepare for the opening of MGM Cotai in 2017. MGM Resorts International has shown its conviction in the long term opportunity of MGM China by investing in an incremental 4.95 per cent of the company, taking its ownership to approximately 56 per cent. We continue to believe in the future of the Macau marketplace and are confident in ongoing success of MGM China as we expand into Cotai in 2017.
“2017 will be a transformational year for MGM, our team of employees will double as will our scale and operation in Macau,” he added. “With almost twice the square footage of what we have at MGM Macau, MGM Cotai’s scale will allow us to develop what we are known for around the world with diversified entertainment offerings. Our theater will be a transformable space, the first of its kind in Asia and the only one of its kind in the world at this size, offering a wide range of entertainment to draw visitors from around the world. Our Spectacle, situated at the heart of the resort, will be enriched with incredible experiential technology elements to wow our guests. When completed, our new resort will provide a truly unique MGM experience with approximately 1,400 hotel rooms, up to 500 gaming tables and 1,500 slot machines. I am certain the opening of MGM Cotai will bring never been seen before experiences to the visitors of Macau.”
MGM said of the Cotai property: “Final cleaning efforts having commenced in multiple locations as has the installation of exterior LED video screens at the northeast and northwest corners of the property. The majority of all fit-out areas within the podium and tower are approaching completion with a significant effort now focused on detailed finish defect rectification and efforts related to completion and handover (including final testing and commissioning of building systems and network). As part of these final completion efforts, furniture and fixture installation is also continuing which will lead into operating supplies and equipment install at the final stage.”