MGM China has outlined a series of substantial upgrade projects across its two Macau integrated resorts as key to sustaining market share in the mid-teens following another record-breaking quarter for the company.
The September 2024 quarter saw MGM China book all-time records for both revenue and Adjusted Property EBITDAR, while the company’s Macau market share reached 15.9% having climbed steadily from just 9.5% pre-COVID.
While the addition of 198 new gaming tables under Macau’s current 10 year concessions and the early adoption of smart gaming tables has aided market share growth, MGM said it has embarked on a series of key capex projects at both MGM Macau and MGM Cotai with a view to maintaining long-term share of at least 15%.
Specifically, the company is expanding its high-end gaming area and renovating its villas at MGM Macau – due for completion in mid-2025 – while at MGM Cotai around 160 standard hotel rooms are being converted into 60 suites, due to come online by the end of next year.
These initiatives, said MGM Resorts CEO and President Bill Hornbuckle, are “aimed at protecting our premium mass market position and driving organic visitation” with the conversion of Cotai suites set to increase the property’s suite-count by around 25%.
Speaking on MGM’s 3Q24 earnings call, MGM China President and COO Hubert Wang said the company was confident of delivering long-term market share in the mid-teens.
“I think in the next year, particularly in the second half of next year when we have all our projects completed, this will help with incremental revenue,” he said. “We think we will be in good shape and maybe with some upside surprise with these products coming online. I think they will position us competitively in the market.”
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