MGM China Holdings is reportedly in discussions with various consulting and design companies with the aim of developing and expanding MGM Cotai in Macau. Specifically, the company is considering adding a non-gaming, wellness-themed building that will include hundreds of hotel rooms and health treatment spaces.
The proposed plans for MGM Cotai are in early stages and subject to changes, Bloomberg reports. The proposed additions to MGM Cotai will target the “mass market” tourists through non-gaming attractions. Reportedly, mass market guests accounted for around 75% of revenues for all Macau casinos in Q1 of 2024. Before the COVID-19 pandemic, this number was around 50%.
MGM Cotai comprises a 35-story commercial development covering a floor area of more than four million square feet. The complex has 2,000 hotel rooms and a 200,000-square-foot casino. Still, it is the smallest hotel among its six competing operators. The proposed expansion is aimed at increasing the hotel’s capacity in addition to appealing to non-gambling guests.
MGM China Holdings, which is majority-owned by MGM International, also the owner of the BETMGM online gambling brand, has been improving its offering in Macau recently. It's also adding a wellness center embracing traditional Chinese medicines to MGM Macau, a short drive from Cotai. A new art museum also boosted the MGM Macau location.
MGM is changing priorities as new Chinese regulations have stopped "junket" from operating. Junkets were agents who helped attract VIPs from China. Despite this, Bill Hornbuckle, CEO and president of MGM Resorts, announced a record adjusted property EBITDAR in Q4 of 2023.
