SJM Holdings has entered into a strategic acquisition agreement in relation to an office building in Hengqin that it plans to develop into a three-star hotel to complement its Macau integrated resort offerings.
The acquisition – first announced last December but only formalized on Monday – will see SJM pay RMB724.2 million (US$101 million) to current owner Zhuhai Hengqin Shun Tak Property Development Company Limited, a wholly owned subsidiary of Shun Tak Holdings Limited.
Shun Tak Holdings counts Pansy Ho – Chairperson and Executive Director of MGM China and head of the alliance that has majority control of SJM’s controlling shareholder, STDM – as its Group Executive Chairman and Managing Director.
When SJM first announced its Hengqin hotel plans last year, it described the acquisition of nine floors of office space and one retail for RMB 546 million, with a total area of 14,845 square meters. The new acquisition agreement now includes three additional floors, adding an additional 5,000 square meters of space and increasing the price by approximately RMB160 million (US$22.3 million).
The planned hotel will, SJM said, become a part of an established lifestyle hub comprising residential, retail and office space immediately adjacent to the Hengqin Port facility.
It added that the project aims to expand the group’s hospitality footprint in the Greater Bay Area, support the integrated development of the Hengqin Guangdong–Macao In-Depth Cooperation Zone and strengthen Hengqin’s role as a key driver of Macau’s moderate economic diversification.
“This project represents more than an expansion of our hotel portfolio. It reflects our strong alignment with national strategies to deepen integration between Hengqin and Macau, and our firm belief in the long-term growth potential of cross-border tourism and cooperation,” said Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, S.A.
“Through this investment, we are taking an active role in shaping the Greater Bay Area’s tourism future, anchored by Macau’s strength as a World Centre of Tourism and Leisure.
“Backed by decades of hospitality expertise and a trusted brand reputation, SJM is well positioned to deliver our signature service excellence to the mass market segment, while unlocking new avenues for collaboration with the vendor and other mainland partners across multiple fronts.”
According to SJM, the conversion and renovation works are expected to be completed within 24 months.
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