Macau’s supply of hotel rooms priced under MOP1,000 ($125) is falling short of meeting the needs of business and budget travelers, warns Galaxy Entertainment Group Chairman Francis Lui Yiu Tung.
Speaking at a media briefing this week, Lui described the shortage as a growing concern, according to Hong Kong media. He noted that although Galaxy and other gaming operators have ramped up non-gaming offerings—such as concerts and conventions—one of the key barriers to further expansion is the limited availability of affordable accommodation. “For example, Broadway Macau has just over 300 rooms. In the long term, redevelopment may be needed,” he said. However, the company’s immediate priority remains the completion of Phase 4 of the Galaxy Macau development.
Lui also emphasized that the group’s shift toward non-gaming has not only diversified its business model but has also enhanced profitability. “Large-scale investment in non-gaming has helped reduce costs such as commission payments to junket operators, making overall profit margins better than before,” he said.
Macau’s luxury-heavy hotel landscape
Macau’s hotel sector is heavily skewed toward the high end. According to data from the city’s tourism bureau, there are about 28,000 five-star hotel rooms, compared to roughly 15,000 in the three- and four-star categories. Most luxury rooms are located within integrated resorts that combine casinos, retail, and entertainment offerings.
This imbalance has prompted calls from both government and industry leaders to increase the supply of budget-friendly options. Former Macau Chief Executive Ho Iat Seng had acknowledged the disproportionate number of five-star hotels and noted that a broader mix, particularly in the three- and four-star segment, is essential to attract group and middle-income tourists.
Galaxy Entertainment previously warned that hotel room capacity could become a constraint on Macau’s long-term growth. In a November 2024 investor roadshow, executives noted that the city’s 48,000 hotel rooms — 38,000 of which are four-star or above — fall short of meeting demand from the 80,000 to 100,000 daily visitors Macau has been receiving in recent months. By comparison, Las Vegas has 150,000 hotel rooms, while Hong Kong and Singapore offer more than 80,000 and 70,000 respectively.
In the recent interview, Lui indicated that insufficient supply of affordable rooms can also result in operational inefficiencies. For instance, after concerts or conventions, attendees who lack accommodation often leave the city immediately, causing congestion at border crossings. He estimated that Macau still lacks more than 10,000 rooms in the business and economy segment.
Galaxy explores expansion opportunities
To address this, Galaxy is exploring the redevelopment of Broadway Macau and monitoring potential opportunities in Hengqin.
As reported by AGB, Galaxy Entertainment also owns 2.7 square kilometers of land to be developed in Hengqin. Chinese investment institution GF Securities noted the firm plans to invest CNY10 billion ($1.43 billion) to develop Maldivian-style low-density leisure resorts at the location.
Galaxy’s Hengqin site is six times larger than the Galaxy Macau project (including phases 1-4). When the Macau Galaxy project is fully developed, it will provide a total of 8,100 hotel rooms. Therefore, although the floor area ratio of the Hengqin project is low, it can still accommodate a large number of hotel rooms.
However, Lui stressed that developing hotel facilities in Hengqin would require policy support, including easing the land reversion rules, improving transport infrastructure, and creating sufficient foot traffic.
He also revealed that Galaxy is advocating for a non-gaming project in the Lai Chi Vun shipyard area, pending further land-use planning by the government, and emphasized the goal of avoiding competition with small and medium-sized enterprises.
Entertainment offerings gain strong traction
In the entertainment segment, Galaxy has found strong traction. Recent concerts featuring artists such as Jacky Cheung, Plácido Domingo, and Andrea Bocelli all sold out. Lui said the company aims to enhance the “gold content” of its non-gaming offerings, targeting high-value shows that drive visitor spending and strengthen Macau’s regional competitiveness.
To this end, Galaxy is exploring resident performances and artistic shows from regions not commonly available in mainland China, including Korean pop groups and US-based acts.
Despite the challenges, Lui expressed confidence in Macau’s current trajectory. He expects gaming revenue in June to remain strong, following a 12 percent month-on-month increase in May.
The market, he said, has transitioned away from VIP-centric operations and now relies primarily on mass and premium mass segments, aligning with a broader strategy to cultivate a more sustainable, diversified tourism economy.
