The Macau Gaming Inspection and Coordination Bureau is expected to release its June GGR report Monday. It was unclear if this week’s visit of Chinese President Xi Jinping to Hong Kong had impacted Macau’s business in the final days of the month.
Xi, who arrived Thursday on a three-day visit, was expected on Saturday to visit the construction site for a multibillion-dollar bridge that will reduce the travel time from Hong Kong to Macau from around there hours to about 30 minutes. Analysts expect the bridge’s opening later this year to make Macau even more attractive for tourism and convention business, including filling more rooms mid-week for the hotel-casino operators.
Regardless, near-term concerns about MGM Resorts’ casino business in Macau and Las Vegas led Deutsche Bank analyst Carlo Santarelli to cut his forecasts for MGM Resorts. The analyst is also cautious on intra-quarter trends but left his “buy” rating in place for the casino operator’s long-term outlook.
On the news, MGM stock fell almost 5 percent on Friday. Wynn Resortsshares had been up as much as 2 percent intraday but eased to finish up about 1 percent. Las Vegas Sands was up less than 1 percent.
MGM’s business is levered mostly to the Las Vegas market, but it plans to open a new resort in Macau’s Cotai district later this year that will increase its hotel capacity three-fold in the larger Macau market. Las Vegas Sands has the biggest exposure in the Macau market among the top-3 U.S. casino companies and is largely focused on the mass market.
Last summer, the $4.1 billion Wynn Palace opened its doors in Macau’s Cotai district. Its recent VIP volumes have been tracking higher