China – Opening costs for Grand Lisboa Palace added to pandemic woes widens SJM’s lossBy Phil - 28 February 2022
Having opened Grand Lisboa Palace on Macau’s Coati Strip, Macau operator SJM Holdings saw its net gaming revenue edge up to HK$9,608m in 2021, as compared with HK$7,304m for the year of 2020.
This led to a loss attributable to owners of the company was HK$4,144m, as compared with a loss HK$3,025 million for the year of 2020.
The Grand Lisboa Palace, the Group’s integrated resort on Cotai, opened its doors to the public on 30 July 2021. In the initial phase opening, the resort offers luxury hotel rooms and suites, fine and casual dining, gaming, wellness and spa facilities and event spaces. As at 31 December 2021, the total Grand Lisboa Palace investment cost was HK$38.2bn. HK$1,027m pre-opening costs has been taken up for the year ended 31 December 2021. Gross revenue of Grand Lisboa Palace was HK$370m, including gross gaming revenue of HK$200m and non-gaming revenue of HK$170m.
After adjusting the pre-opening expenses of HK$1,027m, its Adjusted Property EBITDA was negative HK$423m. Grand Lisboa’s gross revenue was HK$2,322m, including gross gaming revenue HK$2,152m and non-gaming revenue HK$170m, as compared with gross gaming revenue HK$2,067m and non-gaming revenue HK$111m for the year 2020, whilst its Adjusted Property EBITDA was negative HK$522m, as compared with negative HK$1,006m for the year 2020.
Grand Lisboa Palace Resort’s occupancy rate was 48.7 per cent and average room rate was HK$914. Grand Lisboa Hotel’s occupancy rate increased by 40.9 per cent to 58.8 per cent for the full year, whilst the average room rate decreased by 56.2 per cent to HK$706.
SJM had a 12.3 per cent share of Macau’s gross gaming revenue, including 16.3 per cent of mass market table
gaming revenue and 4.9 per cent of VIP gaming revenue.