As revenues at The Landmark Macau continue to decline, casino group Macau Legend has announced plans to offload the property and focus on its operations at Fisherman’s Wharf.
[dropcap]M[/dropcap]acau Legend Development, operator of two casinos on the Macau Peninsula, has filed a letter of intent to dispose of The Landmark Macau.
The five-star, 440-room hotel includes Pharaoh’s Palace Casino, with massmarket gaming facilities, VIP rooms and a slot hall. The casino operates under the licence of Macau gaming operator, SJM Holdings.
“This is an important proposed transaction to the group,” said company co-chairman and chief executive, David Chow. “The past year proved to be challenging. The combination of the economic situation in China, the increase in new hotel and casino capacity in Macau and the changing profile of the visitors to Macau were among the key issues that negatively impacted gaming and non-gaming businesses.”
Chow’s statement came as Macau Legend announced its financial results for 2015. Group-wide, revenue decreased 20.7 per cent year-on- year to HK$1.43bn (E160m). Gross gaming revenue of mass gaming tables and outsourced VIP tables at the Landmark’s Pharaoh’s Palace Casino dropped 38.2 per cent to HK$1.1bn (E125m) and 73.6 per cent to HK$1.5bn (E170m), respectively.
“During this current period in Macau, it is even more important that the group continues to better manage its resources, ensures adequate liquidity and continues to take advantage of opportunities to expand our business overseas,” said Chow. “I strongly believe this strategy is in the best interest of all our shareholders.
The Landmark Macau underwent a significant makeover in 2013 to enhance the revenue generating potential of the property. But as the venue continues to struggle, Macau Legend said it would instead focus its efforts on Macau Fisherman’s Wharf.
Located approximately a fiveminute walk away from the Macau Ferry Terminal along the outer harbour of the Macau Peninsula, Macau Fisherman’s Wharf is the largest leisure and entertainment complex on the Macau Peninsula.
The group is in the process of redeveloping Fisherman’s Wharf. A second hotel, Harbourview, opened its doors in February 2015, while construction of another hotelcasino, Legend Palace commenced in July 2015.
“Construction for the Legend Palace Hotel is expected to be completed in June 2016, and we are targeting to open this new hotel and the casino by the end of 2016.” Chow stated. “We intend to expand New Legend, our self-run VIP operation, which has continued to increase its revenue contribution to the group in 2015, into this new hotel.
“With the increasing focus in Macau Fisherman’s Wharf, it makes commercial sense for the proposed disposal of The Landmark Macau – including the casino facilities – and to focus more on the new hotels, casinos and other tourist-related facilities at Macau Fisherman’s Wharf.”