Posted on: June 19, 2024, 11:10.
Last updated: June 19, 2024, 11:25.
MGM China Holdings, majority-owned by MGM Resorts International, is required to invest $1.9 billion in non-gambling operations at its two Macau casino resorts through 2032. The company is reportedly focusing the mandated investment budget on adding wellness services and hotel rooms.
MGM China agreed to invest $1.9 billion in MGM Macau and MGM Cotai in exchange for a 10-year gaming license extension agreed with the Macau Special Administrative Region government in December 2022. The funds will be used for non-gaming businesses.
MGM China The company has already announced plans to build and open a museum and wellness center at MGM Macau in the Macau Peninsula’s historic downtown, and now rumors are surfacing that the company is planning a similar wellness retreat at MGM Cotai, including spa and health treatment services.
The Cotai Strip is Asia’s version of Las Vegas and is where most of Macau’s luxury casino resorts are located.
Bloomberg We were the first to report rumors about MGM China’s non-gaming investment plans.
Wellness, increasing number of hotel rooms
In addition to self-care and health service facilities, Macau’s two casinos will also feature Bloomberg MGM China is reportedly focusing on expanding the number of hotel rooms at both properties. MGM Macau currently has about 600 rooms, while MGM Cotai has about 1,400 rooms.
With 2,000 rooms, MGM is the smallest hotel operator among the exclave’s six licensed casino operators. By comparison, Sands China Co., the Chinese subsidiary of Las Vegas Sands, offers the most casino hotels with about 12,400 rooms.
MGM is reportedly looking to increase its total room count, which is probably a wise bet, as Macau today has far fewer VIP high rollers and needs to attract more casual leisure travelers.
Macau banned most junkets at the behest of Beijing amid the pandemic. Junket operators have long fueled the high-roller rooms of Macau’s casinos, but President Xi Jinping has grown concerned in recent years about the large outflow of capital from mainland China through Macau.
The special administrative region is seen as a tax haven because of its more favorable personal tax system compared with mainland China’s high-tax communist system.
Casinos are pivoting from high rollers to the premium mass market – everyday consumers who are able and willing to spend thousands of dollars a day, whether on the casino floor or in other areas of the resort.
Integrated Resort, Integrated Wellness
Sands founder, the late Sheldon Adelson, is best known for pioneering the integrated resort casino concept.
Integrated resorts typically include casinos, hotels, convention facilities, entertainment venues, luxury retail and fine dining. The term integrated resort originated in Singapore after Sands opened Marina Bay Sands in 2010.
Spa services and salons have long been elements of integrated resorts, and a focus on wellness continues to gain support in the IR industry. Sands, which is seeking a casino license in southern New York, said last year that it would bring Canyon Ranch to its Long Island resort if it wins one of three gaming licenses.
Canyon Ranch is a leader in wellness retreats. Canyon Ranch Resort offers a wide range of holistic services in spa, beauty, fitness, nutrition, health, mind and spirit. The Venetian Resort in Las Vegas is home to Canyon Ranch.
