SJM Holdings has stated that its newly opened Grand Lisboa Palace, a property in Macau worth HK$39bn ($5bn), could break even in a year or less.
This is despite the challenges caused by the ongoing pandemic, according to GGRAsia.
“I think for our property, looking at breaking even and stabilisation will take 12 months or so, or less,” said SJM Holdings Chairman Daisy Ho. She added that the operator will try to achieve this goal as soon as possible, but that there are external factors that might impact the casino’s progression.
Grand Lisboa Palace opened its doors on 30 July. The property opened with 150 new-to-market gaming tables placed on the mass gaming floor. SJM also announced it will be relocating 118 tables from its other properties, with the expectation that additional tables will arrive within a month or so.
Asia Gaming Brief has reported that VIP gaming has two dedicated floors reserved in the Karl Lagerfeld hotel tower and one floor in the Grand Lisboa Palace Hotel tower. Experts believe that in 2022, Grand Lisboa Palace might generate HK$1.98bn in adjusted EBITDA, with the figure growing to HK$3.27bn in 2023.
The casino will be opened in phases, with some of the hotels welcoming guests by the end of the year. However, the flow of guests could be impacted by renewed travel restrictions to and from Macau.
The majority of visitors to the city come from nearby regions and Hong Kong, and now have to undergo mandatory quarantine procedures. The planned travel bubble with Hong Kong was pushed back several times, with the new date tentatively scheduled for Autumn.