MGM China announced on Friday it is no longer targeting a fourth quarter opening of MGM Cotai after assessing damage caused by Typhoon Hato which struck in August.
After evaluating the damage, MGM says it expects to open the new resort on January 29, 2018.
“The company has since evaluated the situation and developed a revised schedule for completing repair works and processing governmental inspections necessary for obtaining relevant licenses to operate MGM Cotai,” said the company.
“As a result, MGM COTAI will be slightly delayed from our previous expected opening in the fourth quarter of 2017, and is now expected to open on January 29, 2018.”
The company has also reassessed its project costs, and says it now expects the overall budget of the project to increase from HK$26 billion to approximately HK$27 billion (US$3.3 billion), excluding land and capitalized interest.
“If it sticks to the opening date, this would be in time for important Chinese New Year holiday in mid-February,” commented Bernstein in a note on Friday.
“While it cannot be 100 percent assured, there is now a hard-opening date and these are very rarely changed,” noted the brokerage.