SJM Holdings Limited announced in a statement yesterday that its subsidiary SJM Resorts has entered into a promissory agreement with controlling shareholder Sociedade de Turismo e Diversões de Macau, S.A. (STDM) to acquire around 7,504 square metres of former gaming areas within Hotel Lisboa for a consideration of HK$529 million.
The statement noted that the acquisition represents “a strategic reallocation of resources into one of the group’s core gaming venues”, aiming to deliver “earnings accretion and margin enhancement”.
The statement said that it will be used to “expand the current operation of Casino Lisboa, supported by a planned reallocation of certain gaming tables and slot machines from satellite casinos scheduled to cease operations by the end of 2025”.
By transferring certain gaming assets from satellite casinos to a central flagship location under Casino Lisboa, the statement noted that the group “expects to generate stronger returns on these resources through enhanced gaming tables and slot machines productivity in an integrated, high-volume environment”, while also anticipating “meaningful improvements in operating efficiency by unlocking economies of scale in client acquisition and other cost areas”.
“Hotel Lisboa and the connecting Grand Lisboa together form the largest integrated resort on the Macau peninsula, currently offering over 1,500 hotel rooms”, according to the statement.
Both Hotel Lisboa and Grand Lisboa are currently undergoing upgrades, with the latter aiming for an increase of over 10 percent in room inventory “through the conversion of former junket spaces into a collection of exclusive villas, mansions, and premium suites”, while the former’s modernisation programme introduces “refurbished accommodations and refreshed attractions”.
The statement quoted SJM Holdings Chairman and Executive Director and SJM Resorts Managing Director Daisy Ho Chiu Fung as saying: “The acquisition, together with the enhancement of Hotel Lisboa and Grand Lisboa, represents a coordinated transformation of the two iconic Lisboa properties. This strategic development will strengthen the brand’s competitive positioning of the Group by fostering deeper customer loyalty across both VIP and mass market segments, while also enabling the retention of geographically loyal patrons from the former satellite casinos.”
Pedestrians walk near the entrance to Casino Lisboa. – Photo taken recently by Rui Pastorin
