SJM Resorts S.A. has revised payment caps and extended a lease agreement with two satellite casinos majority owned by co-chairman Angela Leong.
According to filings Friday, the gaming operator said it has more than doubled the annual maximum payment to Leong’s wholly owned L’Arc Entertainment for services and use of hotel and casino areas at its peninsula property.
The new caps are HKD908.3 million for fiscal 2024 and HKD960 million for 2025, up from HKD351.7 million and HKD450.1 million, respectively.
SJM said payments under the existing L’Arc agreement had risen 44.7% to HKD157.4 million in the first quarter of 2024, justifying the increased caps due to expected tourism growth.
In a separate filing, SJM entered a new three-year lease agreement to operate Casino Oceanus at Jai Alai, of which Leong owns 97%, and other facilities. Monthly rent will climb from HKD3.5 million in the first year to HKD4 million and HKD4.5 million in subsequent years.
The company said steady growth at Casino Oceanus and projected high visitor volumes in coming years will drive continuous high hotel room demand, allowing SJM to operate there at low cost and without disruption.
SJM’s business has been recovering, with gross gaming revenue up 77% year-over-year to HKD6.89 billion in the first quarter, according to the company. Staff Reporter
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