Macau’s fastest-growing casino operator, which announced record revenue for 2024, is reportedly seeking $2 billion (HK$15.5 billion/£1.577 billion/€1.9 billion) in financing to fund a major expansion in the Chinese gaming enclave.
Sources close to the company told Bloomberg that MGM China Holdings Ltd has approached a dozen banks in search of a syndicated loan with a five-year Hong Kong dollar-denominated facility.
It would be the group’s first syndicated loan since the Covid-19 pandemic, the news outlet reported.
“Record performance from China” buoyed 2024 revenue
On 12 February, US-based parent MGM Resorts International posted $17.24 billion in consolidated net revenue, a new record. Total revenue exceeded the 2023 total of $16.16 billion by 6.7%.
CEO Bill Hornbuckle called it “the best full-year consolidated net revenues in the history of the company. This was driven by a record performance from MGM China. We’re also encouraged by the strong demand we’re seeing in the business so far in 2025, which positions us well for continued growth.”
Revenue from MGM China rose 27.6% to $4.02 billion. That was the second-biggest slice of the revenue pie for MGM, after the Las Vegas Strip.
“In Macau, we achieved the best full-year segment-adjusted EBITDA in the history of MGM China,” Hornbuckle said. “We continue to be a high-performing outlier in the market with exceptional execution by the team.
“Macau 2049, our first residency show at MGM Cotai and the Poly Art Museum at MGM Macau, which sold over 10,000 people in one day during Chinese New Year’s, are both important steps to drive non-gaming revenues and visitation to Macau.”
MGM China commanded about 15.8% of market share for the year, up from about 10% before the pandemic.
MGM looking to draw more mass-market players
The proposed expansion of MGM properties in Macau is not new.
Since mid-2024, the company has been formulating capital-expenditure projects at MGM Macau and MGM Cotai. The move is designed to diversify its offerings beyond gaming, in alignment with government mandates, and also to grow its appeal among mass and premium-mass players.
In a November earnings call reported by the Macau Daily Times, MGM announced it would expand the premium gaming area at MGM Macau and increase the number of villas by 25%. At MGM Cotai, it revealed plans to transform 160 standard hotel rooms into 60 high-end suites.
The renovations are due to be complete in the second half of 2025, said MGM China President Kenneth Feng. “Once the projects are finished, we believe we are going to continue to lead our Macau market,” he said.
The company has also considered adding new hotel rooms, spas and other wellness centers. Presently, it offers 2,000 rooms in Macau, the smallest portfolio among the Big 6 casino concessionaries.
Original article: https://igamingbusiness.com/casino/mgm-china-seeks-billions-in-loans-to-fund-macau-expansion/
