Emperor Entertainment Hotel has announced an adjustment to the annual caps on the service fees it will receive from SJM Resorts.
According to a Thursday filing, the management of Emperor Entertainment Hotel anticipates that the service fee receivable from SJM may exceed the existing annual caps. Therefore, it has proposed an increase in the existing annual caps for the financial years ending on March 31, 2024, and 2025, as well as for the nine months ending on December 31, 2025.
The cap for the fees for the year ending March 31 has been raised to HK$600 million ($76.8 million) from HK$400 million ($51.2 million), and for the year ending March 31, 2025, it has been increased to HK$1 billion ($128 million) from HK$600 million ($76.8 million).
The cap for the nine months ending December 31, 2025, has increased to HK$900 million ($115.2 million) from HK$700 million ($89.6 million).
The board of the company notes that due to the significant growth in visitor arrivals to Macau leading to a robust increase in gross gaming revenue in Macau, the increase in annual caps provides the Emperor Entertainment Hotel Group with the flexibility to receive service fee income from SJM, thereby increasing its revenue.
Emperor Entertainment is a Macau satellite casino promoter that operates the casino venue, the Grand Emperor Hotel, in downtown Macau. The casino is promoted under the license of gaming concessionaire SJM Holdings Ltd.
