Zhongshan non-gaming development could help Melco’s Macau retender

Melco International Development’s project in Zhongshan could benefit Melco Resorts and Entertainment when it rebids for a Macau gaming concession, analysts suggest.

In a joint venture with Agile Group Holdings, Melco International will develop a non-gaming complex including a theme park, in the city in Guangdong province. The Hong Kong-listed firm is the parent of Melco Resorts, while both companies are controlled by entrepreneur Lawrence Ho. “We are determined to play an active role in the development of the Greater Bay Area, and to leverage the incredible expertise of the group in non-gaming activities,” Ho stated.

In an announcement on 23 June, Melco International said it expects most of the scheme, including the theme park, to be completed by 2025.

“It is a good tactic. The proposed project will supplement Melco’s entertainment business in Macau,” said Alva To, VP Greater China, head of consulting, at property consultancy Cushman and Wakefield.

Similarly, Sanford C. Bernstein analysts Vitaly Umansky, Louis Li, and Kelsey Zhu noted that Melco’s “commitment to developing non-gaming (in this case a theme park) in the greater Macau area should help its positioning with respect to Macau gaming concession rebidding”.

“While the project will not open before 2025, once in place, it can provide a co-marketing opportunity for Melco Resorts casino properties in Macau,” they added.