Grand Lisboa opening likely Jan 2021: MS

Tuesday 17th of September 2019

Morgan Stanley analysts expect a further delay in the opening of the Grand Lisboa Palace, which was previously expected to open in the second half of 2020.

The delay in the property’s opening, which is now expected to be January 2021, will also have an effect on mass-market revenue growth over the next year, as the lack of supply will hurt overnight visitor numbers to Macau.

The $4 billion resort will feature 1,900 guest rooms and suites in the Grand Lisboa Palace Hotel, Palazzo Versace Macau and Karl Lagerfeld Hotel. Other features will include a Wedding Pavilion for celebrations and events, a multi-purpose hall and entertainment and leisure facilities.

“Mass revenue is generally helped by overnight visitations, which, in turn, is helped by supply of hotel rooms – both of these are seeing a slowdown as new capacity additions are delayed. We expect hotel room growth to remain close to zero similar to July 2019.”

Morgan Stanley has cut both mass and VIP growth expectations, to -3 percent in 2019 and 3 percent in 2020, down from estimates of -1 percent in 2019 and +8 percent in 2020.

Morgan Stanley said mass revenue, which has remained robust over the last eight months, could turn slower in 19Q4, down to single-digit growth.

“Our concerns include slower premium mass business (commentary by various operators, including Sands China and Wynn Macau), as well as slower growth in room nights sold, owing to delays in new hotel openings.”

The brokerage has also lowered mass revenue growth to 7 percent in 2020 vs. 10 percent previously.