MGM China Holdings is considering an expansion of one of its casino resorts in Macau, adding hotel rooms and a range of wellness services as it seeks to attract customers beyond traditional high rollers, according to sources familiar with the matter.
The group is speaking to consultants and designers about possibly adding a new wellness-themed building to its resort in Cotai, Macau’s version of the Las Vegas strip, the sources said, asking not to be identified because the deliberations were private.
The addition may include hundreds of more hotel rooms as well as spas and health treatment services, the sources said, adding that plans were at an early stage and could still change. The company, with only around 2,000 rooms in Macau, currently has the smallest hotel portfolio among the city’s six casino operators.
The project is part of the group’s efforts to bolster its non-gaming offerings and attract mass-market tourists, especially those with stronger spending power known as the “premium mass” who typically lose over thousands of US dollars a day.
An MGM China spokesperson declined to comment. The company already plans to open a new art museum and a wellness centre offering traditional Chinese medicine regimens later this year at another Macau resort that’s a 15-minute drive from Cotai.
Operators including MGM and Sands China, eager to attract mass-market customers, have been rolling out rewards including free hotel rooms, food and drinks for more customers. China’s crackdown on junkets – agents who helped casinos bring in high-rollers – has nearly wiped out the VIP segment while the mass market, which used to account for around 50 per cent of Macau’s total gaming revenue before Covid, accounted for roughly 75 per cent in the first quarter.
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MGM’s market share of gaming revenue jumped to 17 per cent in the first quarter from 10 per cent in 2019, helped by a significant expansion of its gaming tables granted by the Macau authorities, an upgrade of resort facilities and its early adoption of technologies designed to manage tables more efficiently and can identify potential big players.
The company is also known for its aggressive promotions. In a bid to attract customers back to gaming floors, MGM offers Haagen-Dazs ice cream, bubble tea and a range of baked goods for free to anyone in their gaming area.
Rivals stepped up their game, with Sands serving croissant ice cream with gold leaves and Melco International Development offering Moutai-flavoured ice cream – tactics which attracted so many tourists that some small, local businesses complained. Most casinos have recently limited the free snacks to players after a government advisory, sources familiar with the situation said. BLOOMBERG
