Galaxy Entertainment Group Ltd has announced that the Capella at Galaxy Macau hotel, a new addition to their portfolio, has entered its soft opening phase. This development was confirmed on Thursday, marking a significant milestone for the luxury hotel sector in Macau. The Capella at Galaxy Macau, which had its soft launch in early May, is poised to fully open its doors over the next few months, as stated by Francis Lui Yiu Tung, the chairman of Galaxy Entertainment. This statement was part of the company's unaudited business highlights for the first quarter ending March 31. The hotel, designed by the renowned French design house Moinard – Bétaille, spans 17 storeys and offers a unique blend of luxury with 36 villas and 57 'jungle-themed' suites, setting a new standard in the region's hospitality industry.
Capella's Premium-Mass Room and Gaming Facilities
Analysts from Citigroup have expressed their admiration for the quality of the premium-mass room at Capella, specifically the 'Horizon Plus' room. They noted its strategic location near the hotel elevators, which enhances the convenience for guests moving between their suites and the gaming tables. The room features an open gaming area near its entrance, equipped with 16 baccarat tables, where most tables have minimum bets ranging from HKD5,000 to HKD10,000, alongside a dining area. At the back of the room, there are six private salons, each containing two to three baccarat tables, and some of these salons are fitted with KTV systems.
Citigroup believes that the Horizon Plus room at Capella has the potential to become one of the top premium mass rooms in Macau. During their visit, the analysts observed two high rollers, or 'whales', with chip stacks of HKD8 million and HKD5 million respectively, and noted that three out of the six private salons were occupied.
Galaxy Entertainment's Financial Performance in Q1
Galaxy Entertainment reported a robust financial performance for the first quarter, with revenue reaching HKD11.20 billion, marking a 6.2 percent increase from the previous year. The company's adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) saw a significant rise of 16.3 percent from the prior-year period, totaling nearly HKD3.30 billion. Sequentially, the adjusted EBITDA increased by 1.8 percent. The group's total gross gaming revenue (GGR) for the quarter was nearly HKD10.94 billion, up 13.6 percent year-on-year but down 0.8 percent sequentially.
Within this, mass GGR was HKD8.23 billion, a 6.5 percent increase from the previous year, while VIP GGR was HKD1.98 billion, showing a substantial 52.3 percent year-on-year growth. JP Morgan Securities (Asia Pacific) Ltd noted that Galaxy Entertainment's first-quarter results were in line with expectations across various metrics, including GGR market shares, EBITDA, and margins. They also highlighted that the company's EBITDA performance was better than anticipated, with a 2 percent increase quarter-on-quarter, surpassing both consensus and JP Morgan's estimates. This performance was partly attributed to a favorable VIP luck impact of HKD330 million. Galaxy Macau was the main contributor to the group's revenue and earnings during the January to March period, with net revenue of HKD9.15 billion, up 10.0 percent year-on-year, and adjusted EBITDA of HKD3.02 billion, a 15.4 percent increase from the previous year.
Chairman Francis Lui Yiu Tung emphasized the company's efforts to drive every segment of the business, particularly the premium mass, through enhanced products and services, ongoing property improvements, diverse entertainment offerings, and the full implementation of smart tables. He also mentioned satisfaction with the casinos' performance over the Chinese New Year and the subsequent period, which saw a longer tail than in previous years. Additionally, adjustments were made to Galaxy Macau's main gaming floor in March, introducing new electronic games, which had a slight disruptive effect for the month.
Galaxy Entertainment's balance sheet remained strong and liquid, with cash and liquid investments increasing to HKD33.0 billion, and a net position of HKD29.0 billion after accounting for HKD4.0 billion in debt. The company also reported that construction of Galaxy Macau's Phase 4 is well underway, with plans to introduce multiple high-end hotel brands new to Macau, a 5000-seat theatre, various food and drink outlets, retail spaces, non-gaming amenities, a water resort deck, and a casino, with completion scheduled for 2027.
Source: Galaxy Ent says its Capella hotel in soft opening phase, group 1Q EBITDA hits US$424mln, GGRAsia, May 8, 2025.
Posted by Wizard
May 09 2025
May 09 2025
Comments
No comments for this article.