Grand Lisboa Palace generates HK$128 mln in revenue during first quarter in operation

The Grand Lisboa Palace – SJM Resorts first integrated resort on Cotai – generated HK$128 million (US$16.4 million) in gross revenue in the third quarter of this year, including HK$69 million in gross gaming revenue and HK$59 million in non-gaming revenue, the group’s third-quarter financial report reveals.

Still, the property reported a total of HK$176 in negative adjusted EBITDA, after including pre-opening expenses of HK$300 million.

The property opened its doors to the public on July 30, 2021 after a HK$39 billion investment, offering some hotel rooms and suites, signature and casual dining, gaming, wellness and spa facilities and event spaces during the first phase.

SJM’s HK$39 billion property partially opened on July 30 with only 300 of the 1,350 rooms included in the Grand Lisboa Palace Macau Hotel available, plus some restaurants and event space.

The Grand Lisboa Palace includes approximately 1,900 hotel rooms and suites in three hotels — the Grand Lisboa Palace, the Palazzo Versace and the Karl Lagerfeld — as well as facilities for meetings and conferences, shopping, dining, gaming and entertainment.

However, it still reported only a 39 per cent occupancy rate, with the resort’s opening coinciding with several new Covid-19 case outbreaks in Macau during August and September.

SJM’s chairman and executive director, Daisy Ho Chiu Fung, previously said that the group would slowly increase the number of rooms according to actual demand, with the second phase will depend on the pandemic progression and travel restrictions.

As a comparison, SJM’s Grand Lisboa property generated HK$651 million including gross gaming revenue HK$607 million and non-gaming revenue HK$44 million in the third quarter and reported a 52 per cent hotel occupancy rate.

In total SJM Resorts reported a total of HK$1.2 billion in loss attributable to owners during the third quarter, mainly due to the absorption of pre-opening costs and depreciation of Grand Lisboa Palace and interest expenses.

The group reported a total of HK$2.2 billion in net gaming revenues during the period, including HK$460 million in negative Adjusted EBITDA.

‘Our operating results for the quarter and year-to-date registered improvements over 2020, although SJM continued to be impacted by the COVID-19 pandemic that
severely interrupted visitor flow to Macau,’ Vice-Chairman and Chief Executive Officer of SJM Holdings, Ambrose So, says in the report.

‘Nevertheless, with our new products, including a complete array of non-gaming activities, and the talents of our loyal staff, we are confidently poised to participate fully in Macau’s recovery in the coming years.’