The impending launch of Galaxy Macau Phase 3 and development of Phase 4 will further strengthen Galaxy Entertainment Group’s (GEG) ability to gain Macau market share, aided by a localized “cluster effect” according to Credit Suisse analysts.
The investment bank published a note this week following a recent Galaxy Phase 3 site visit in which analysts Kenneth Fong and Sardonna Fong said the addition of new amenities provided solid long-term growth potential.
“We believe Phase 3 and Phase 4 should underpin Galaxy’s long-term growth, when the cluster effect continues to build among Galaxy Macau properties,” they wrote.
“With a mass-market-driven recovery ahead, the addition of non-gaming elements and capacity should further strengthen the company’s ability to gain market share.”
The analysts also pointed to increasing connectivity between Galaxy Macau’s phases as a considerable advantage following the 2011 opening of the property’s original phase and 2015 launch of Phase 2. The third phase, which is basically complete and awaiting the green light, introduces the 450-suite Raffles hotel brand, 715-room Andaz Macau hotel and 40,000-square meter Galaxy International Convention Center (GICC), while Phase 4 – likely to open in 2025 – is seen as more lifestyle focused, Credit Suisse said.
“This would target a younger demographic in response to the evolving player demand and behaviour,” the investment bank explained.
“Upon project completion, there could be increasing connectivity among phase 3 and 4, and with existing Phase 1 and 2 properties. We noticed that Phase 4 external superstructure construction is in progress.”
On the Phase 3 timeline, which has already seen a soft opening for GICC but no firm date offered for a full launch, Credit Suisse added, “While the property hardware is ready, we believe the exact opening timing would depend on the pace of staff training. Management is not rushed to open but hopes to ensure offering the best customer experience.”
GEG has previously stated that Galaxy Macau Phase 3 would open progressively from 2Q23.
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