The acquisition by Macau concessionaire SJM Resorts, S.A. of peninsula hotel and casino L’Arc – one of the satellite casinos currently operating under its license – appears to be a value-accretive purchase with the property promising to generate up to HK$350 million (US$45 million) in EBITDA annually for the company, according to investment bank JP Morgan.
SJM revealed Thursday that it had reached an agreement to acquire L’Arc for a total consideration of HK$1.75 billion (US$45 million), although it will not pursue a similar deal for Inner Harbour resort Ponte 16.
The deal with L’Arc values its 283 rooms at around HK$6.2 million (US$800 million) per key, which JP Morgan analysts DS Kim, Selina Li and Lindsey Qian describe as an “attractive valuation” given its prime location on the peninsula and within a stone’s throw of Wynn Macau, MGM China and Galaxy’s StarWorld. The analysts added that they don’t expect SJM will need to inject much capital into upgrades either as L’Arc’s room quality and offerings are “somewhat comparable” to the company’s existing peninsula properties.
From a financial perspective, JP Morgan said that L’Arc generated around HK$1.4 billion (US$180 million) in gross gaming revenue in 2024 and another HK$1.3 billion (US$167 million) through the first 10 months of 2025 from 45 gaming tables.
“Our back-of-the-envelope math suggests L’Arc could be generating HK$300 million to HK$350 million (US$38.5 million to US$45 million) per annum in EBITDA as a self-run casino at current GGR levels -implying a ~20% margin on HK$1.6 million to HK$1.7 billion (US$205 million to US$218 million) in total revenues (including non-gaming),” the investment bank calculates.
“Potential upside exists if SJM ramps up additional tables, as L’Arc can physically accommodate 90 to 100 tables.”
L’Arc could, therefore, lift SJM’s 2026 EBITDA by 8% or 9% at the current run-rate, making the deal a net positive.
