Grand Lisboa Palace opening could be further delayed to Q3 – Brokerage

Analysts from Morgan Stanley state in a recent note that they believe SJM’s Grand Lisboa Palace opening could be further delayed to the third quarter of this year.

The first Cotai integrated resort by the local gaming concessionaire was previously expected to open by June, with Macao Government Tourism Office (MGTO) Director Maria Helena de Senna Fernandes saying this week the property is in the final stages of licensing.

According to Morgan Stanley, it could take 4 to 8 weeks for the property to get its MGTO and Gaming Inspection and Coordination Bureau (DICJ) Occupancy Permit (OP) and approval/licenses.

The brokerage also indicates the resort currently has 3,500 staff on board with SJM planning to open with 260 mass tables first, while the remaining 44 VIP tables may open later in 2022 when Versace hotel opens.

The Grand Lisboa Palace will feature a total of approximately 1,900 hotel rooms and suites in three hotel towers — the Grand Lisboa Palace, the Palazzo Versace and the Karl Lagerfeld — as well as facilities for meetings and conferences, shopping, dining, gaming and entertainment.

‘One of the two towers of GLP hotels will open first (650 rooms). Retail rental may not come in until the end-2021 or 2022,’ Morgan Stanley added.

SJM mass-market volume was said to currently be at 40 to 50 per cent of pre-COVID level, while hotel occupancy is at 70-80 per cent.

The group has recently issued HK$1.25 billion Hong Kong and MOP300 million in senior notes in the SAR bond market, to help repay bank loans connected to the Grand Lisboa Palace construction and other general corporate purposes.