Macau’s hotel room rates will be further pressured by the openings of new gaming projects, according to a note from Wells Fargo Securities on Monday.
“Macau hotel rates [are] down 2 percent year-on-year in September, and down 13 percent in October/November.”
On Tuesday, Sands China officially opened the doors of its $2.7 billion Parisian Macau, wihch consists of 3,000 rooms, hundreds of shops, a theatre, a water park and an Eiffel Tower replica.
Last month, the $4.2 billion Wynn Palace opened its doors - adding another 1,700 luxury rooms to the mix.
The increased hotel capacity has already had an effect on hotel rates.
According to Wells Fargo, Las Vegas Sands’ hotel rates are down 28 and 22 percent year-on-year in October and November.
“We note that LVS and Galaxy are the only Macau operators who generate material cash contribution from hotels and food and beverages,” added the brokerage.
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