MGM China’s CEO Kenneth Feng revealed Tuesday that the company’s suite products typically yield up to five times more than a regular hotel room.
His comment was in response to questions during a panel session at G2E Asia around the conversion by all six of Macau’s concessionaires of existing hotel room inventory into suites, which has expanded the city’s high-end offerings but at the same time reduced the total number of keys.
MGM itself recently announced the launch of 63 new suites at MGM COTAI following a year-long conversion, with plans to launch 100 more at MGM MACAU in the near future.
According to Feng, such initiatives are all about striking a balance between profitability and fulfilling the Macau government’s diversification push.
“The yield on a two-space suite is about five times compared to single-space revenue,” Feng explained.
“We do the calculations on who can get a suite, who can get a better room and it is based on their performance [as a casino player]. And based on those calculations, even based on industry practices, generally it’s about five times. This is a very simple calculation, and it is why we need more suites.”
Asked if the government was comfortable with this reduction in hotel key count given the mass influx of tourists into Macau – the city welcomed a record 40 million visitor arrivals in 2025 – Feng replied, “Basically, everything we need to do [is about] balances.
“No doubt, Macau wants the gaming industry to grow healthily [but] in order to [fulfil] more non-gaming [commitments], of course, we need to be more profitable. It’s a balance.”
MGM has been the biggest winner in the Macau market post-COVID, increasing its market share from below 10% to above 16% thanks to its player reinvestment strategy and extensive improvements made at its Cotai and peninsula integrated resorts.
Feng explained that this was not so much due to the expansion of MGM’s premium offering but more so a result of the company’s understanding of its players.
“It’s not really the number of suites,” he said. “It’s about the quality of the suites. Where does the customer like to stay? We know that in this entire region, in China, it never lacks of hospitality products, so the key is when the customers come to Macau, when they see your products, they are delighted to stay.
“They don’t see a typical business hotel suite, business hotel suite or resort hotel suite. Here is a different market. This is a premier, massive, premium market and the customers coming here, they have certain expectations. We want to make sure what the customers see here is a flow so that when they check into the room, when they come to the floor, what they see is our desire to serve our customers. We want to show that all the products flow to their ultimate purpose. And yes, we want them to play a bit more.”
