Mere hours after MGM China Holdings Ltd. posted its financial report for the fourth quarter of fiscal year 2014, the gambling operator also announced that it is planning to spend US$100 million on the refurbishment of its MGM Macau hotel and casino venue.
At present, the resort is the only one operated by the company within the territory of the administrative region, known to be one of the world’s top gambling destinations.
MGM China posted net revenue amounting to US$718.7 million for the last quarter of 2014, down by 22% as compared to what was reported a year ago. Mass players accounted for 75% of the gambling operators EBITDA, a 60% increase compared to the fourth quarter of fiscal year 2013. The substantial rise was attributed to the rearrangement of gaming tables on the main floor.
Yesterday, Grant Bowie, chief executive officer of MGM China, said that they intend to remain competitive on the constantly changing gaming market and this is why they will invest the amount of US$100 million in capital in 2015. The money will be spent on refurbishment of the main casino floor, improvements in the operating efficiencies and the current traffic flow. What is more, the company plans to launch several non-gaming products, such as 15 stores and new food and beverage options.
MGM China promised that the main floor renovation will not have a considerable impact on the operations of the casino. In fact, Mr. Bowie pointed out that they expect to keep the current productive capacity of the venue and once the refurbishment is completed, the capacity will be increased even further.
The executive also said that the revamp is most likely to begin at some point in the third quarter of 2015.
In fact, the renovation of MGM Macau started back in 2014 when the amount of US$45 million was spent for the purpose. Mr. Bowie explained that the refurbishment of the luxurious venue included 27 separate projects, which will be carried out over the period of three years.
MGM China is also currently busy with the construction of its second property on the territory of Macau. The so-called MGM Cotai, which will be located on the Cotai Strip, the Asian analogue of the Las Vegas Strip, is scheduled to open doors for visitors in the second half of 2016. The project was estimated at US$2.9 billion. Mr. Bowie said that the construction of the venue is on schedule and construction workers have reached the 16th floor of the hotel towers.
