Galaxy Macau delays phased opening due to pandemic; operator plans Greater Bay Area expansion

Galaxy Entertainment Group has shared its second quarter and interim results for 2021 on August 12, reporting net revenue of $10.7 billion, up 71%; and Adjusted EBITDA of $2.0 billion.

Despite these positive results and continuing work with Macau community to control Covid-19, the group has announced it will postpone the opening of Galaxy Macau Phase 3 until 2022, citing restrictions to workforce and building material access due to the pandemic.

In a press conference on Thursday, Vice Chairman Francis Lui Yiu Tung said that it was “hard to determine” an exact date of the opening of Phase 3, as the firm has already shifted the date of launch several times.

Given the current situation, the company hopes that, by early next year, part of the Phase 3 projects will be open for business.

One of said openings will be Raffles at Galaxy Macau, an exclusive 450 all-suite tower, part of Cotai Phase 3, set to open “early 2022”, with a launch date modified from “later part of 2021” according to a first-quarter report.

This opening will be followed by Galaxy International Convention Center and hotel Andaz Macau, “in anticipation of the recovery of the MICE and entertainment markets.”

Following these two launches, Galaxy Entertainment Group will proceed with the construction of Cotai Phase 4, a “next generation integrated resort” which will complete the company’s ecosystem in Cotai, supporting “Macau’s vision of becoming a world centre of tourism and leisure.”

“GEG is uniquely positioned for long term growth,” described the company in its Q2 report. “We are proceeding with the development of Phases 3 & 4 and continue to review and refine plans to ensure a world-class optimal development.”

Phases 3 & 4 combined will have approximately 3,000 high end and family rooms and villas, 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, F&B, retail and casinos.

“We will try to maintain our development targets, however due to COVID-19, development timelines may be impacted,” further added the group, while admitting that, at this point, it cannot “quantify the impact” but will endeavor to maintain schedule.

Despite these delays in the upcoming two phases, Galaxy Entertainment Group remains confident, having experienced its fourth consecutive quarter of gross gaming revenue growth despite sporadic outbreaks of COVID-19 both in Mainland and Macau.

Earlier this month, Macau reported four positive cases, which caused Macau’s casino revenue to drop to $15 million in the first week of August. It is expected that the month will see a 30% drop compared to July.

However, no new cases have been reported since, and border restrictions have now been reversed.