Lawrence Ho Yau Lung, Chairman and CEO of Melco Resorts & Entertainment Ltd, has expressed the company’s readiness to invest more in the Macau market to meet additional concession-related commitments as required by its contract with the local government.
New Concession Contracts
Under the new concession contracts with Macau’s six operators, if the city’s annual gross gaming revenue (GGR) reaches a threshold of MOP180 billion (US$22.3 billion), the casino firms will be required to increase their collective non-gaming and overseas-marketing spending pledges by up to 20 percent.
Financial Preparedness
Lawrence Ho stated that if Macau’s GGR exceeds the 20 percent cap, Melco Resorts is financially ready and willing to invest more to meet the requirements. The company has pledged to invest MOP11.8 billion for its new 10-year casino concession, with MOP10.0 billion allocated for non-gaming activities.
Discussions with Macau Government
Despite the approval of its investment plan by Macau authorities in May, Melco Resorts is still in discussions with the government regarding the specifics of the plan for the year 2023. The company aims to diversify the market and attract more international visitors.
Hotel Revamp
Melco Resorts plans to revamp some of the existing hotels at its City of Dreams property in Macau. The Countdown hotel at City of Dreams is one of the first properties to undergo refurbishment, aligning it with the rest of the complex. However, the brand for the revamped hotel has not yet been decided.
W Macau Hotel Addition
The recently launched W Macau hotel, located at the Studio City casino resort in Macau, adds 557 rooms and suites to the complex. The “W Hotel” brand is part of Marriott International Inc. Lawrence Ho believes that the addition of W Hotel introduces a new segment to the market, catering to younger customers who have been visiting Macau post-Covid recovery.