Last week, MGM China stated that its Cotai construction “is moving along at full steam.” Yesterday, the Group’s Chief Executive Officer and Executive Director, Grant Bowie, revealed the master plan for MGM’s Cotai project.
The MGM Cotai property, which occupies some 2 million square feet, will contain a five-floor luxury mansion. The CEO described it as “hotel in a hotel.” In addition to this, there will be a garden designed with natural life features exclusively for guests of the villa. Mr Bowie said as they found that many guests like an indoor environment with natural light, the garden could become a private garden for the villas.
In addition to the mansion, the group is also pioneering a US-led concept called “sky lofts” to provide a unique hotel experience to customers. The loft structure will be built on the top of the middle tower.
There will also be non-gaming hospitality and entertainment attractions, according to Mr Bowie.
The Group stated last week that the basement works are near completion and they can now move on to the construction of the hotel towers. They received their sub-structure (foundation) license in February last year.
Earlier this month, MGM also obtained a super-structure license, which allows the group to build the entire physical building. They estimated that between now and the stage that they legally “acquire” the buildings, there will be one or two additional submissions to the government.
It is estimated that the structure will be inaugurated in the middle of 2016. The project features up to 1,600 hotel rooms and 500 tables, with over 85 percent of the gross floor area allocated to non-gaming.
Bowie said: “We also consider retail as a very important component. We understand that it’s been an explosion of retail in Macau. (…) The most important brands in the future may not exist today.” He said that the group is also looking for different solutions, and to see what they can offer their customers.
Referring to MDT’s previous exclusive interview, it is expected that the 2-million-square-foot MGM Cotai property will attract more than 35,000 visitors per day (MGM Macau receives 25,000 daily), featuring approximately 1,500 hotel rooms (in phase one) with “a lot of variety, bringing the style of the Las Vegas product here.” The casino area will be big enough to contain 500 tables. Similar to the Macau property, there will be a separate VIP lobby.
Last week, MGM China released its interim results for the first six months of 2014, which saw an increase of 43 percent in table games win during the period. The company board has declared an interim dividend of HKD28 cents per share. In the first half of 2014, MGM China’s net revenue has risen 12 percent to HKD13 billion. The adjusted EBITDA margin also reached 27.4 percent, which the group suggested was driven by record business in the main floor table games segment.
MGM considers transforming Lion’s Bar into retail area
Mr Grant Bowie, Chief Executive Officer and Executive Director of MGM China Holdings Ltd., revealed that the group is considering using its Lion’s Bar venue as part of a retail space.
According to Bowie, who made the comments yesterday during a press conference on MGM’s 2014 interim report, the group plans to expand the retail area of its peninsula resort as part of the refurbishment project. Before its Cotai project opens, MGM’s Macau resort won’t risk becoming outdated compared to the Cotai site as the group plans to refurbish it. “Because we don’t want to lose any opportunities,” Bowie stated. The upgrade will cover the supreme gaming lounge, mass area as well as the VIP rooms.
Mr Bowie further added that the nightclubs and bars in Macau do not seem to meet the taste of local people. “People prefer smaller and intimate spaces rather than a large space,” he said. The group is considering building smaller bars to meet the demand of their customers. But Mr Bowie promised that Lion’s Bar won’t be removed before they have found other suitable locations.
The annual spending on the Macau property upgrading costs is currently set at USD50 to 75 million. It is estimated that in 2015 this will go up to 100 million a year.
A new gaming space will be created upstairs. Bowie pointed out that the significant difference for the new area will be in terms of space: “It’s much more intimate, much more specific to individuals.”
As for the non-gaming areas, the group aims to expand the retail space as well as the food and beverage section, while 600 rooms in MGM will also be refurbished. G.Y.
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