SJM Holdings has renewed a Products and Services Master Agreement with its controlling shareholder Sociedade de Turismo e Diversões de Macau, S.A. (STDM) under which the parent will continue providing services to SJM’s Macau hotels and casinos.
However, a connected “Right to Use a Shop” agreement under which STDM rents space at Grand Lisboa Palace (GLP) for its New Yaohan retail store will be terminated at year’s end, with SJM detailing the need to better utilize the space to improve GLP’s offering.
The agreement will officially expire on 31 December 2026, with STDM to pay its subsidiary compensation to the value of HK$31.9 million comprising cash, a deposit offset and vouchers redeemable at New Yaohan or Panda.
“Entering into the Termination Agreement will allow both SJM Resorts and New Yaohan sufficient time to effect a smooth and orderly transition with minimal disruption to their respective operations, while enabling the optimal utilisation of the premises,” SJM said in a filing.
“Upon termination and the return of the premises by New Yaohan, SJM Resorts intends to enhance the integrated resort offerings that better align with evolving consumer preferences. This will serve as a catalyst to strengthen Grand Lisboa Palace Resort’s overall competitiveness in the Cotai market and contribute positively to the long-term value and sustainability of its ecosystem.”
Under the renewed Products and Services Master Agreement, STDM will continue providing services throughout 2026 covering hotel accommodation for gaming patrons, promotional and advertising services, food and beverage services, transportation, maintenance and engineering services, laundry services and hotel management.
Of these, hotel accommodation services are to be capped at HK$96.6 million (US$12.4 million) – up from HK$63.5 million (US$8.1 million) in 2025, and promotions and advertising at HK$27.3 million (US$3.5 million), up from HK$19.1 million (US$2.4 million).
Also renewed is a historical “Chips Agreement” relating to STDM chips that were still circulating when Macau’s gaming industry was liberalized in 2002 and SJM awarded one of six gaming concessions and sub-concessions.
The new agreement, running through 2028, requires SJM to honor those chips if redeemed up to HK$75.8 million (US$9.7 million) per year – although the company noted that recent usage has been tiny with around HK$200,000 (US$25,570) redeemed each year.
STDM holds a controlling 54.8% stake in SJM Holdings, with SJM noting that as such the agreement listed are connected transactions under Hong Kong listing rules.
