Macau’s hotel sector saw $1B gross surplus in 2023, led by 5-star hotels

Macau’s hotel sector recorded a gross profit of nearly MOP8.16 billion ($1.02 billion) in 2023, with five-star hotels contributing almost MOP5.88 billion ($736 million), or 72 percent of the total.

According to Macau’s Statistics and Census Service (DSEC), four-star hotels generated a surplus of nearly MOP1.13 billion, while three-star hotels contributed almost MOP1.06 billion. Two-star hotels posted a surplus of MOP95 million. 

Notably, receipts from two-star hotels surged by more than 300 percent, while five-star and three-star hotels saw about 150 percent growth in their receipts. Four-star hotels also experienced a nearly 70 percent year-on-year rise in receipts.

The hotel sector showed a strong recovery in 2023, with the total number of establishments, including hotels and budget accommodations, rising to 145—an increase of 12 establishments compared to the previous year. Employment in the sector also expanded by 27.8 percent, reaching 45,704 workers.

Fueled by rising guest occupancy and a surge in visitor numbers, the sector’s total receipts soared by 136.4 percent year-on-year, totaling MOP37.93 billion ($4.75 billion). On the expenditure side, excluding depreciation and interest, hotels spent nearly MOP29.84 billion ($3.74 billion) in 2023, marking a 41.1 percent increase from the previous year. 

These expenses included MOP14.2 billion ($1.78 billion) in operating costs, MOP12.14 billion ($1.52 billion) in employee compensation, and MOP3.41 billion ($427 million) for goods purchases and commissions—an area that saw a significant 125.2 percent jump.

Despite rising costs, the sector achieved a remarkable turnaround, moving from a deficit in 2022 to a surplus in 2023, largely due to Macau opening up and eliminating its pandemic-related restrictions in early 2023.

In addition, the number of budget accommodation establishments in the gaming hub reached 43, up by nine from 2022. These establishments saw their receipts rise by 301.6 percent, while expenditures increased by 108.1 percent, resulting in a gross surplus of MOP24 million ($3 million).