SJM to end New Yaohan lease at Grand Lisboa Palace

[Photo: Ana Damaso]

SJM Holdings announced that its “Right to Use a Shop” agreement with controlling shareholder Sociedade de Turismo e Diversões de Macau, S.A. (STDM), which allows the parent to operate the New Yaohan retail store at Grand Lisboa Palace (GLP), will be terminated at the end of 2026.

The company said the move is aimed at better utilizing the space to enhance the resort’s integrated offerings and strengthen GLP’s competitiveness in the Cotai market.

“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 utilization 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,” the filing added.

The agreement is set to expire on December 31, with STDM providing compensation to SJM valued at HKD31.9 million, comprising cash, a deposit offset, and vouchers redeemable at New Yaohan or Panda.

STDM holds a 54.8% controlling stake in SJM Holdings.

The termination comes as SJM also renewed its Products and Services Master Agreement with STDM, which continues to cover hotel, food and beverage, promotional, transportation, maintenance, laundry, and hotel management services throughout 2026. LV