MGM China is said to considering an expansion of one of its Macau integrated resorts, MGM Cotai, that would include the addition of hundreds more hotel rooms as well as spas and health treatment services.
According to a report by Bloomberg, the company is currently in discussions with consultants and designers in regard to the project, reported as a “wellness-themed” building aimed at attracting a new type of clientele to the SAR.
Big Health is one of the four diversified development projects identified by the Macau government as areas in which it wants to focus, the other three being high-tech, modern finance, and MICE, culture and sports.
MGM China Chairperson and Executive Director Pansy Ho also stated last year that the company would invest in “Big Health” – which comprises health management, medical care, Chinese medicine and services related to cosmetology and spa according to the government – should the city’s gaming revenues reach the threshold to force a mandatory increase in non-gaming investments under Macau’s 10-year gaming concessions. That threshold was ultimately reached when GGR passed MOP$180 billion (US$22.3 billion) in 2023.
Bloomberg cited “people familiar with the matter” for the information, which it says involves targeting the lucrative premium mass segment.
MGM China recently set an all-time quarterly record for Adjusted EBITDAR in the three months to 31 March 2024, aided by the addition of 200 new gaming tables under its 10-year-concession and the impact of smart gaming table technology across its baccarat inventory.
Some rival operators have also singled the company out for its aggressive promotional activity since Macau’s borders reopened in early 2023, although MGM Resorts CEO and President Bill Hornbuckle has defended that activity, pointing to MGM China’s healthy margins as evidence its marketing efforts are reasonable.
