SJM feels only a slight downturn despite progressive closure of satellite casinos
2025 marked a period of significant strategic realignment for SJM
Macau operator SJM Holdings saw its gross gaming revenue decrease by HK$205m to HK$28,619m, representing a modest year-on-year decline of 0.7 per cent. This overall softness was primarily attributable to the phased cessation of satellite casino operations, which commenced at the end of July 2025 and weighed on the group’s reported market share, which declined to 11.9 per cent from 13.1 per cent in 2024.
The group’s self-promoted portfolio demonstrated resilience. Gross gaming revenue from self-promoted casinos increased by 4.6 per cent year-on-year to HK$18,851m, with Non-Rolling GGR reaching 144.4 per cent of the comparable 2019 level. The “hotel, catering, retail, leasing and related services operations” segment also recorded a 2.3 per cent year-on-year revenue increase.
As a result, the Group recorded a loss attributable to owners of HK$429m for the year.
Daisy Ho, Chairman and Executive Director of SJM Holdings Limited and Managing Director of SJM Resorts, commented: “The fiscal year 2025 marked a period of significant strategic realignment for the Group as we navigated regulatory transition and an increasingly competitive environment. This groundwork has set the stage for a pivotal 2026. With these major transitions now behind us and portfolio upgrades coming onstream, we are opening an exciting new chapter. We will remain firmly focused on disciplined execution and the delivery of sustainable long-term value for our shareholders.”
Grand Lisboa Palace Resort Macau recorded total revenue of HK$7,373m during the year, with GGR increasing to HK$6,066m compared with HK$5,238m in 2024, alongside non-gaming revenue of HK$1,307m. Its occupancy rate for the year decreased to 96.5 per cent.
Grand Lisboa Macau reported a total revenue of HK$7,697m for the year and GGR decreased year-on-year by 2.9 per cent to HK$7,332m. The hotel’s occupancy rate for the year decreased to 98.2 per cent. The group’s other self-promoted casinos, Jai Alai Hotel, L’Arc Hotel, Sofitel at Ponte 16 and other also delivered solid performances, with Non-Rolling GGR at 107 per cent and Adjusted Property EBITDA at 89.8 per cent of 2019 pre-pandemic levels.
The operator said: “During 2025, the Group’s performance was shaped by the progressive closure of satellite casinos in accordance with Macau’s updated regulatory framework. The phasing out process commenced at the end of July, with the majority of closures concentrated in the fourth quarter. These developments resulted in short-term revenue dislocation; hence, exerted pressure on overall profitability and market share during the transition period.”
“Following the satellite closures, the Group strategically and systematically redeployed its gaming tables and operational resources into its directly operated portfolio. To support this consolidation, SJM completed two targeted acquisitions on the Macau Peninsula: designated areas within Hotel Lisboa and the L’Arc Hotel property. At Hotel Lisboa, the acquired areas are being introduced in stages, with Crystal Palace commenced operations in November 2025 and a second phase scheduled for opening by mid-2026, while the remaining portion will be launched within the year 2026. Meanwhile, L’Arc Hotel began operating as a self-owned property under SJM in late December 2025, marking the beginning of a new chapter. These developments deepened integration across the Lisboa footprint, further expanded the Group’s operational scale within the downtown entertainment cluster, and strengthened its ability to serve geocentrically loyal customers.”
“Both Grand Lisboa Macau and Hotel Lisboa are undergoing major upgrades through a phased and coordinated programme. More than 400 newly refurbished rooms at Hotel Lisboa will be introduced in the second half of 2026, aligning with the full opening of Crystal Palace. Grand Lisboa Macau is concurrently advancing its room inventory expansion. In parallel, three new self-managed restaurants have been added, and the refurbishment of the Grand Ballroom has been completed.”
“All Peninsula properties carried positive momentum into 2026, successfully retaining a meaningful portion of customers previously served by former satellite casinos, while maintaining strict adherence to disciplined reinvestment and cost management practices. In Cotai, GLP has increased table capacity following the satellite transitions. The property has introduced new gaming areas, including the Sky Phoenix West Tower VIP area, and undertaken the conversion of Dragon Pavilion to support premium mass operations. Further upgrade works across the main gaming floor and hotel offerings will be implemented in phases throughout 2026, aimed at optimising product mix, improving floor efficiency, and enhancing the overall customer experience.”
“Looking ahead, the Group will maintain a prudent focus on cost discipline, reinvestment management, and customer portfolio optimisation. With the structural effects of satellite closures largely absorbed and redeployment initiatives completed, management continues to prioritise improving operating efficiency, supporting margin growth, and strengthening portfolio offerings to expand its base of high-quality customers.”
