Macau’s Grand Emperor Hotel will cease casino operations from 26 June 2022, citing a challenging business environment due to COVID-19 and a gloomy outlook for the VIP gaming sector.
Emperor Entertainment Hotel Limited announced its decision not to renew the company’s service agreement with SJM Resorts, which has seen it operate the casino out of Grand Emperor Hotel since 2010 under Macau’s unique satellite casino system. It had most recently extended the original service agreement for two years in 2020 to coincide with the 26 June 2022 expiration of the Macau gaming concession held by SJM.
The decision not to extend any further, despite all six Macau concessionaires having recently applied to extend their own licenses by a further six months until 31 December 2022, comes amid reports that at least seven other satellite casinos – including all four operated by Golden Dragon Group – will shut down this year.
The Macau SAR Government has made the issue of satellite casinos a priority under revisions to the gaming law currently working their way through the Legislative Assembly, demanding that in future all satellites must be located within properties owned by a concessionaire.
Although Grand Emperor is one of the more prominent of Macau’s 18 satellites – located in prime position on the Macau Peninsula just a short walk from SJM’s Grand Lisboa – Emperor Entertainment said, “As the Group has been facing a tough business operating environment arising from the COVID-19 pandemic over the past two years, which resulted in segment losses [for] the Group for both the year ended 31 March 2021 and the six months ended 30 September 2021, and considering the gloomy outlook of the high-end gaming segment, the board of directors, after careful and due consideration, has resolved not to renew the Service Agreements with SJM and to cease the gaming operation of the Group upon the expiry date.”
Grand Emperor will continue to offer its hotel and other hospitality services, while the company acquired another hotel and two blocks of serviced apartments in Hong Kong in 2021. It also owns the Inn Hotel Macau.
“The Board shall explore suitable opportunities to utilise the financial resources with an aim of expansion of its hospitality business,” it said.
“Given the strategic position of Hong Kong and Macau within the Greater Bay Area, the Board is positive towards the outlook of the hospitality sector in the long run after the [easing of] anti-pandemic measures and the [border reopening].”
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