MGM Cotai opening could again be delayed

MGM Cotai opening could again be delayed

Tuesday, June 21, 2016 Totally Gaming
The resort is the latest in Macau to be linked to a change of schedule

The MGM Cotai resort in Macau could be set for another delay after management suggested it may now not open until the second quarter of 2017.

The $3.1bn (€2.7bn) project was originally scheduled for completion in the fourth quarter of 2016, with that pushed back to the start of 2017.

According to a note issued by brokerage firm Sanford C. Bernstein Ltd, a source from MGM Resorts, which owns 51 per cent of MGM China Holdings Ltd, told analysts and investors that there is a “possibility” the resort would now open between April and June of next year. The company has not officially changed its planned completion date.

“MGM China expects to complete all the government processes by the end of this year and maintains its target date of late first quarter 2017, though there is the possibility that the opening may trickle into the second quarter,” said the note from Sanford Bernstein analysts Vitaly Umansky, Simon Zhang and Clifford Kurz.

The delay would be the latest among Macau operators, with The 13 hotel pushed back from summer 2016 to the end of the year. Wynn Resorts and subsidiary Wynn Macau have yet to provide a date for when in the third quarter the under-construction Wynn Palace casino resort will open, having initially been scheduled for June 25.

Sanford Bernstein said in its note on MGM Resorts’ briefing day – citing MGM China’s chief executive Grant Bowie – that the promoters of MGM Cotai were confident the new round of Cotai hotel openings would not lead to overcapacity in the market.

“Despite an additional 14,000 or so of room inventory that will be added over the next few years, Grant [Bowie] believes Macau is still critically undersupplied in terms of room capacity – especially when we compare Macau’s approximately 30,000 hotel room supply to Las Vegas’ approximately 150,000 rooms,” said Sanford Bernstein.

TotallyGaming.com says: “With Macau’s gaming industry continuing to consolidate, the delays may be the best thing for the operators and the market as a whole.” 

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