The mass-led recovery in Macau is persisting, with the mass market table drop surpassing 2019 levels by 5.7 percent at the integrated resorts of Galaxy Macau in 2Q23. Additionally, the mass table win was approximately 1 percent higher than in 2Q19, according to a report by CBRE Securities.

At the Macau peninsula-located hotel-casino StarWorld, the mass table drop reached 77.1 percent of the levels seen in 2019, while the mass table win rebounded to 70 percent.

Across the company, which includes Broadway and City Clubs, the mass drop and win have both recovered to 86.4 percent and 86.5 percent of the levels seen in 2Q19, respectively.

In an investment memo released on Friday, CBRE Securities noted that Galaxy Entertainment Group reported revenue of HK$8.7 billion ($1.1 billion) and property EBITDA of HK$2.5 billion ($323 million), marking a 22.8 percent and 23 percent increase quarter-on-quarter, respectively.

Despite the continued mass market recovery in 2Q23, analysts pointed out that EBITDA fell short of the estimated HK$3 billion ($380 million). The margin shortfall was primarily attributed to Galaxy Macau. However, CBRE anticipates that margins will improve in the third quarter.

CBRE believes that the recovery pace in 3Q23 will accelerate, as management reported several key metrics that provide reasons for optimism.

“Most notably, QTD mass drop and win are already at 120 percent of 2019 levels company-wide, although we suspect the contribution quantum is biased towards Galaxy Macau, given its recently completed capital projects and upcoming event schedule,” note the analysts.

“While 2Q23 operated at near full occupancy, this trend is continuing into 3Q23, even with the additional room supply.”

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Galaxy to expand hotel room inventory to 7,500

Analysts mention that Phase 4 of Galaxy Macau will encompass six high-end hotels, a 4,000-seat theater, extensive F&B, retail, non-gaming amenities, and a water resort deck. Upon Phase 4’s completion, Galaxy Macau’s hotel capacity will reach 7,500 rooms.

According to the financial report released late last week, Phase 4 will primarily focus on non-gaming aspects, particularly MICE, entertainment, and family facilities, though some gaming components will also be included.

The final major component of Galaxy Macau Phase 3 is the 700-room Andaz hotel tower, scheduled to open in September.

With Phase 3 nearly fully operational, construction of Phase 4 is already well underway, with the topping off of four towers expected by year-end.