Melco: Studio City Casino is being expanded
The tenor is also with all current threats of the gambling industry: looking ahead. It has to go on. The gaming group from Melco International Development has also recognized this. The company, in persona of Lawrence Ho, confirmed a few days ago that the expansion of the integrated Studio City Casino Resort in Macau will continue. Specifically, the construction phase of the mega-project is now being heralded. And this expansion costs Melco another 836 million US dollars. After a basic investment of already 3.4 billion US dollars, the project as a whole is certainly no small matter. All the more gratifying for Melco that work is picking up speed again.
Melco's Studio City Casino Resort: Over $4 Billion
The internationally operating gambling groupMelco International Development Limited swings the construction hammer. Of course only in the figurative sense. The company announced in persona of its CEO Lawrence Ho that work on Phase 2, theexpansion of the Studio City Casino Resort, has started in Macau. For the group, the expansion is the continuation of a construction project worth billions in the heart of the Asian gambling city. The group invested about 3.4 billion US dollars in the first construction of the plant. In the second construction phase that has now started, costs of around 836 million US dollars are to be added. In total, thecosts for the luxurious resort construction are just over four billion US dollars. Of course, Melco will not swing the construction hammer itself. The expansion will be largely taken over by the construction conglomerate China State Construction International Holdings.
The first construction phase of the mega structure was completed around five years ago.In the fall of 2015, the group will open its resort with a grand opening ceremony. International top stars such as Leonardo DiCaprio and Robert De Niro were there. The resort has been well known since the opening ceremony at the latest. The flagship of the resort are the two prominent towers. The"Star Tower" and the "Celebrity Tower" offer guests space in around 1,600 rooms and suites. In addition, a large casino area is provided. Here, guests can let off steam at more than 1,200 slot machines and around 250 gaming tables for roulette, blackjack and more. And that's not all. Guests can also take a seat in the golden Ferris wheel between the two towers or enjoy the Warner Bros. Fun Zone designed Batman Dark Flight 4D ride.
Construction time of around three years expected
According to the plans, the mega resort is to be expandedanother 900 rooms and suites. Hierfür sollen zwei weitere Hoteltürme errichtet werden. Darüber hinaus investiert der Konzern auch in die Unterhaltung abseits der Spieltische. Errichtet werden soll zum Beispiel eine Einrichtung für Tagungen und Ausstellungen. Ebenso wird der Bau eines der größten Indoor-Wasserparks der Welt forciert. Es dürfte klar sein, dass für diese zahlreichen Neuerungen einiges an Bauzeit fällig wird. Der Konzern rechnet in diesem Zusammenhang mit Verzögerungen. Ursprünglich sollte der Bau im Mai 2022 abgeschlossen sein. Die Bauzeit hätte dann 32 Monate betragen. Diesen Plan kann man zwar noch einhalten, allerdings scheint dies laut Melco eher unrealistisch. Wie der Konzern mitteilte, seien only a few construction workers from mainland China have come to Macau so far. For this reason, delays are expected in the further construction process. Specifically, the financial report states:
“Before the outbreak of Covid-19, we estimated a construction period of approximately 32 months for the remaining project. With the disruptions caused by the Covid-19 outbreak, the construction period may be delayed and beyond the estimated 32 months.”
The group cannot yet foresee how far possible delays could reach. Aside from the labor required, according to MelcoThere may also be delays in permitting. However, the company said it would follow developments closely. If the construction took additional time, the company would apply to the Macau government for an extension of the construction period, Melco said.