China – MGM to delay completion of Cotai casinoBy Phil - 5 November 2014
MGM China is delaying the opening date of its US$2.6bn MGM Cotai from early 2016 until the autumn of 2016.
The Cotai Project will have 1,600 hotel rooms, 2,500 slot machines, and up to 500 gaming tables with a budget of approximately HK$20bn, excluding land cost and capitalised interest.
the Cotai Project will feature over 85 per cent gross floor area of non-gaming offerings, including restaurant, retail and entertainment attractions and remain on schedule to open during the first half of 2016. The Group is also looking at other opportunities to include additional non-gaming offerings at the Cotai Site.
Jim Murren, Chairman and CEO of MGM Resorts, said: “The construction of MGM Cotai is progressing well and is on time, and on budget, for a fall 2016 opening.”
Grant Bowie, Chief Executive of MGM China, added: “We are just refining the plans; we’re very comfortable working with the contractor that we have now got.”
The operator has already spent US$81m on the project.
MGM China earned net revenue of $794m, a two per cent decrease compared to the prior year quarter;
VIP table games revenue decreased 19 per cent due primarily to a decrease in VIP table games turnover of 19 per cent compared to the prior year quarter, as well as a decrease in hold percentage to 2.7 per cent in the current year quarter compared to 2.8 per cent in the prior year quarter.
Main floor table games revenue increased 34 per cent compared to the prior year quarter. Main floor table games volume increased five per cent and hold percentage was 28 per cent in the current year quarter compared to 24 per cent in the prior year quarter.