Galaxy Entertainment Group’s Galaxy Macau Phase 4 is expected to be completed in 2027 and open in 2028, targeting high-value premium consumers from Japan, South Korea, and ASEAN markets.
The details were cited by Hong Kong media outlet Ming Pao, which reported on an HSBC note following the bank’s engagement with Galaxy.
HSBC said the new phase will significantly expand Galaxy’s non-gaming offerings and focus particularly on travelers from Tokyo, Seoul, and Southeast Asia. The report said Galaxy aims to compete through quality and service amid intensifying competition in Macau’s gaming market.
According to the report, Galaxy told HSBC that geopolitical tensions have encouraged stronger demand for short-haul travel. Luxury retail categories, including high-end fashion, watches, and jewelry, have performed well, prompting the company to expand its retail space.
HSBC said Galaxy is expected to use artificial intelligence and technology to keep operating expenses under control. The bank noted that the group’s average daily operating expenses have increased only moderately, from $3.3 million in 2019 to $3.7 million this year.
The report also said that even after the completion of Galaxy Macau Phase 4, Galaxy Entertainment will still hold a substantial amount of undeveloped land. HSBC said there is also potential for the redevelopment of Broadway Macau, which could provide an additional 750,000 square feet of usable gross floor area.
Galaxy’s management also reiterated a preference for dividends over share buybacks, supported by cash holdings of HK$33 billion to HK$35 billion ($4.23 billion to $4.49 billion).
On baccarat side bets, HSBC said Galaxy is adopting an iterative approach by first introducing different side bets and then using analytics to remove games that slow table operations.
