MGM Resorts' Asia division is seeking billions in loans to expand its operations in Macau.
Macau’s fastest-growing casino operator, which reported record revenue for 2024, is seeking $2 billion (HK$15.5 billion/£1.577 billion/€1.9 billion) in funding for a major expansion in the Chinese gaming hub.
According to sources cited by Bloomberg, MGM China Holdings Ltd has reached out to a dozen banks to secure a syndicated loan with a five-year Hong Kong dollar-denominated facility.
If finalized, this would mark the company's first syndicated loan since the Covid-19 pandemic, the report added.
“Record performance from China” buoyed 2024 revenue
On 12 February, MGM Resorts International, the U.S.-based parent company, reported a record-breaking $17.24 billion in consolidated net revenue for 2024, marking a 6.7% increase from the previous year's $16.16 billion.
CEO Bill Hornbuckle hailed it as “the highest full-year consolidated net revenue in the company’s history,” attributing the achievement to MGM China’s strong performance. He added, “We’re also optimistic about the robust demand we’re witnessing early in 2025, positioning us for continued growth.”
MGM China’s revenue surged 27.6% to $4.02 billion, making it the company’s second-largest revenue contributor after the Las Vegas Strip.
“In Macau, we delivered our highest-ever full-year segment-adjusted EBITDA,” Hornbuckle stated. “Our team continues to set a market-leading standard with outstanding execution.”
He also highlighted recent initiatives aimed at boosting non-gaming revenue and tourism, including Macau 2049, MGM Cotai’s first residency show, and the Poly Art Museum at MGM Macau, which drew over 10,000 visitors in a single day during Chinese New Year.
MGM China’s market share grew to approximately 15.8% for the year, a significant rise from around 10% before the pandemic.
MGM looking to draw more mass-market players
MGM’s planned expansion in Macau has been in the works for some time.
Since mid-2024, the company has been developing capital-expenditure projects for MGM Macau and MGM Cotai. The initiative aims to diversify its offerings beyond gaming, aligning with government requirements while also attracting more mass and premium-mass players.
During a November earnings call, as reported by the Macau Daily Times, MGM announced plans to expand the premium gaming area at MGM Macau and increase its number of villas by 25%. At MGM Cotai, the company intends to convert 160 standard hotel rooms into 60 luxury suites.
MGM China President Kenneth Feng stated that the renovations are expected to be completed in the second half of 2025. “Once these projects are finished, we are confident that we will maintain our leadership position in the Macau market,” he said.
The company is also exploring additional hotel rooms, spas, and wellness centers. Currently, MGM operates 2,000 hotel rooms in Macau, the smallest inventory among the city’s six casino concessionaires.
