Galaxy pledges diversification efforts as it opens new hotels in May

Galaxy Entertainment Group (GEG) said that it is committed to diversifying its offerings with the news that it will be opening three new hotels, while expanding Galaxy Macau into its second phase. On Friday, the group unveiled its plans for the Broadway Hotel, which will be located in the former Grand Waldo, as well as for phase two of Galaxy Macau. Both projects will open on May 27.
The group said that it invested HKD43 billion “in a planned HKD100 billion commitment to Macau.” In an initiative that will see the size of its Cotai property doubled to over 1.1 million square meters, the casino operator will add a 3,000-seat entertainment theater with live entertainers, performances, and 120 bars and restaurants.
Galaxy Macau will include six hotels providing 4,000 rooms, suites and villas, as well as two spas. The luxury hotels, the Ritz-­Carlton (over 250 suites), the JW Marriott (1,000 rooms) and the Broadway Hotel (320 rooms) will be added to the already existing Banyan Tree Macau, Hotel Okura Macau and Galaxy Macau. A skytop aquatic adventure river ride and a wave pool are part of the new offering, too.
“What we’ll do is make it more diverse, from entertainment and leisure, to culture and art; we will continue to expand,” Lui Che Woo, the group’s chairman, said at a press conference. “This is to meet the requests from the country and Macau,” he added.
Part of Galaxy Macau’s expansion involves the creation of “The Promenade,” providing 200 luxury and lifestyle retail brands, including H&M, Burberry, Alexander Wang, Moncler, Qeelin, Bvlgari, Lanvin, and Louis Vuitton, among others.

Lui Che Woo

GEG’s vice-chairman Francis Lui highlighted the company’s willingness to follow the Macau government’s wishes to diversify the industry. “We hear that visitors are spending an average of 1.9 days here and that’s a very good sign. It means they won’t just spend money on gambling; they will also spend it on entertainment, shopping, food and beverages. Galaxy in recent years has been moving forward in this direction,” he said.
As the emerging Chinese middle-class has shown a willingness to travel, Mr Lui assured that they are not just interested in gambling and “that’s why we want to offer them other experiences.”
Macau’s gaming revenue saw its first annual decline last year and at least one junket group announced that it would close some of its VIP rooms in the city. Nevertheless, Mr Lui said the group did not feel overly affected, speaking on behalf of VIPs: “We always work with capable intermediaries for both the mass and VIP markets. We do not feel a great impact on the VIP side because we are heading in the right direction.”
“If we just focus on figures, it seems that the non-gaming business is not meaningful (…) but the growth of non-gaming business is very impressive (…) so, looking to the future, we will see further improvements in the non-gaming sectors, and we will see changes due to the diversification of the industry,” he noted.
Mr Lui acknowledged that the group has to further develop its conventional approach to business logistics and transportation matters.
Macau’s current gaming concession contracts expire in 2020 and 2022. The government announced last year that it would start reviewing the licenses with casino operators this year. A possible increase on gaming taxes has been discussed, but GEG’s vice-chairman said on Friday that they believe the government “will think very carefully” before making such a move.
“We are realistic to say that the government will look into all aspects before making a decision. This is a major decision to be made and I think the government will be making it very carefully. They would need to hear the opinions of the general public before making a decision. This is not a small business (…),” Francis Lui stated.
Galaxy Entertainment Group is controlled by billionaire Lui Che Woo, who has a net worth of USD11.7 billion, according to the Bloomberg Billionaires Index.

Galaxy and gov’t still discussing number of gambling tables

The vice-chairman of Galaxy Entertainment Group (GEG), Francis Lui, said that the operator is still discussing with the government on the number of gambling tables that it will acquire following the opening of Galaxy Macau phase two and the Broadway Hotel.
He stressed that the group is confident that it will get the necessary number of gaming tables to generate profits, as they’ve “been very much aligned with the government’s vision [of diversifying the industry]” since the opening of Galaxy Macau. “We understand the importance of the mass market and the non-gaming elements. We have been heading in that direction,” he added.
The chief financial officer for GEG, Robert Drake, added: “Our intention is to begin our operations as we’ve done historically – with phase one. As far as tables are concerned… we’re now going through that process of working with the government on the submissions. But we are quite confident that we will get a sufficient amount of tables to generate the returns we have been forecasting.”
The group is also confident that it will manage to recruit 8,000 people by May to work in the new hotels and entertainment facilities. Francis Lui said that they have already hired 1,000 workers and are looking to recruit a further 7,000.
“So far, we’ve recruited 1,000 people and we are hoping to recruit the rest of them before the opening,” he said.  He also added that they will likely need “quite a few thousand” foreign workers.
“But it very much depends on the vacancies that will be given to local people first. We are publishing advertisements in the newspapers now and, depending on the feedback we get from locals, we will consider offering the job to non-locals,” he clarified.
Mr Lui recalled that Galaxy Entertainment is offering competitive salary packages.  As such,  they are confident that they will achieve a good result in terms of personnel recruitment.