Galaxy Macau revamp underway in show of confidence from owner
Galaxy Entertainment Group has confirmed that its flagship property, the Galaxy Macau resort on Cotai, is undergoing significant renovations. Along with other Galaxy properties, this renovation will cost $190 million – that’s a significant investment, given most commentators are worried about a China slowdown. Reports indicate that the work is taking place on the Galaxy Macau’s mass and VIP gaming floors – and that there is more work to be done.
Galaxy Entertainment Group’s share price has appreciated by 19% over the last 30 days
Source: Yahoo Finance
In a recent statement, Galaxy Entertainment made the following comment: “We are pleased with the progress of the [revamp] programme and will continue to provide a comfortable and enjoyable environment to our guests. The programme includes the upgrading of gaming facilities, including both mass gaming floor and various VIP rooms, and non-gaming facilities such as food and beverage outlets. It also includes the renovation of Galaxy Hotel, Hotel Okura Macau, Banyan Tree Macau and StarWorld Hotel.”
Galaxy is committing to inward investment despite worries about the Chinese economy. There are a couple of compelling reasons for that. First, even if China’s economy does look like it’s facing difficulties, the high-end has continued to see staggering growth. This month, we’ve reported on Nike’s latest earnings, and they show strong sales in China. Traditional and high-end luxury companies also seem to have done well despite almost a year of fretting for the naysayers (and soon, as earnings season kicks into gear, we’ll see whether that’s still the case).
The second reason Galaxy might be feeling positive about the future of Macau gaming involves recent reports (which we’ve covered on this newsfeed) that big gaming companies in the territory are leveraging Big Tech to gain a competitive advantage at the tables.
Dominion holds Galaxy Entertainment Group in its Global Trends Luxury Fund.
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