MGM China has prepared a pipeline of upgrades for its properties in Macau and Cotai in a bid to pursue a better market position.
The casino operator on Thursday reported a 14 percent increase in net revenue and a 5 percent rise in adjusted property EBITDAR for the third quarter.
Both figures set a new record compared to the previous year, resulting in a 26 percent margin. The gaming company currently enjoys a market share of 15 per cent.
Speaking to industry analysts in an earnings call, William Joseph Hornbuckle, president and chief executive officer of MGM Resorts International, revealed a number of capital improvements aimed at consolidating the group’s premium mass position and driving organic visitation.
The major initiatives include a planned renovation of the villas on the peninsula as well as a conversion of guest rooms into suites in Cotai. The latter is expected to lift the group’s suite count by 25 per cent.
“I think that will put us in a better position competitively in this market. When these projects come to completion and fruition in the second half of next year, we expect the margin to continue to improve,” said Hubert Wang, president and chief operating officer of MGM China.
MGM Macau, as the MGM management revealed, has been undergoing several projects including a “mini event centre”, “gaming floor refreshment programmes”, as well as F&B outlets.
“The goal for development is really to make sure all these products reflect the relative trend of the customers,” Kenneth Feng, president and executive director of MGM China, said.
All these property improvements are expected to finish by the middle of 2025. The Cotai suite conversion alone is slated to complete by the end of next year, involving 160 standard rooms and 60 suites.