Macau’s entertainment hub Cotai has seen its share of the local gaming market climb to 61.4% as of 4Q17, including 64.2% of mass market revenue, according to a report by Melco Resorts.
Melco’s March 2018 Investor Information Pack, released on Friday, highlights the growing importance of the Cotai Strip and surrounds to the city’s future as more and more visitors gravitate towards its expanding array of mega-resorts. Cotai is home to Melco’s City of Dreams and Studio City properties, as well as Galaxy Macau, Wynn Palace and Sands China’s quartet of the Venetian, Sands Cotai Central, Parisian Macao and The Plaza. MGM also opened MGM Cotai last month.
According to Melco’s report, Cotai’s share of GGR has risen from 45.5% in early 2014 – before any of Studio City, the Parisian, Wynn Palace or MGM Cotai were operational – to its current high of 61.4% at the end of 2017. The figure represents a 3.6% year-on-year and 1.0% sequential increase. Mass market share grew 2.2% year-on-year and 1.8% sequentially in 4Q17 to 64.2%
Cotai also holds 58.3% of the 4 and 5 star guestrooms in Macau, up from 47.0% in 1Q14 but slightly down from 59.7% 12 months ago.
Melco noted that growing overnight visitation bodes well for Macau’s future, with overnight visitors representing 53.7% of all visitors in the fourth quarter, up from 45% in 2008.
Overnight visitation has historically shown a correlation with healthy mass market gaming numbers, the company said, although Melco’s own share of mass GGR fell to 14.7% in the fourth quarter, down from 15.0% in 4Q16 and from 16.4% in 3Q17.
Melco Resorts didn’t provide any further information on the upcoming launch of its luxury hotel Morpehus at City of Dreams, but said it still expects to open in 2Q18.