SJM Holdings to Transform Hengqin Office Space into Budget Hotel, Expanding Macau’s Hospitality Offerings
Macau – December 12, 2024 – SJM Holdings Ltd, a prominent casino operator in Macau, has announced plans to acquire office space for CNY546 million (approximately US$75.2 million) situated on Hengqin Island. This acquisition is part of the company’s strategy to convert the space into a three-star hotel, which will enhance its portfolio under the esteemed Lisboa brand.
Details of the Acquisition
The acquisition involves an office space spanning 14,845 square meters (159,790 square feet), located on the 21st to 29th floors of a building on Jilin Road, Hengqin, along with a retail unit on Xinde Jie. In a filing to the Hong Kong Stock Exchange, SJM Holdings highlighted that the conversion of the office space into a hotel is expected to take around two years to complete.
The new hotel will complement SJM Resorts Ltd’s existing five-star accommodations, including the Grand Lisboa and Grand Lisboa Palace, both of which are located a short drive away from Hengqin. This strategic move aims to cater to the rising demand for affordable lodging options, enabling SJM Holdings to attract a broader segment of budget-conscious travelers.
Expansion Strategy and Market Reach
SJM Holdings expressed that the proposed property would provide opportunities to diversify its offerings and expand into the mass market. The company’s filing noted, ‘This would diversify our portfolio, expanding our reach into the mass market and increasing overall revenue streams.’
Daisy Ho Chiu Fung, chairman of SJM Holdings, emphasized the significance of this acquisition in fostering economic diversification in Macau. She stated, ‘By leveraging the synergies between Macau and Hengqin, we aim to create conditions for the diversified development of Macau’s industries and contribute to its integration into the national development agenda.’
Strategic Location and Connectivity
The location of the new hotel is strategically advantageous. It lies in proximity to Hengqin Port, the primary immigration control point to and from Macau. Furthermore, the site is near the intersection of the Guangzhou-Zhuhai Intercity Railway and the newly opened Macao Light Rapid Transit (LRT) Interchange station, which promises increased foot traffic and access to various amenities such as a 43,000 square meter retail mall, residential apartments, offices, and hotels.
Background and Related Developments
The site will be acquired from Shun Tak Holdings Ltd, a conglomerate involved in property, shipping, hospitality, and investment sectors. Notably, Shun Tak Holdings was founded by Stanley Ho Hung Sun, the founder of SJM Holdings. Daisy Ho’s family maintains a significant control over the company, with her sister, Pansy Ho Chiu King, acting as the chairperson and managing director.
Recent developments have seen the Chinese government easing travel restrictions for residents of Zhuhai and those living on Hengqin Island. Additionally, the new ‘Hengqin Line’ for Macau’s light rapid transit system began operations on December 2, further enhancing connectivity between the regions.
With these strategic moves, SJM Holdings aims to solidify its position in the evolving Macau tourism landscape, fostering growth and diversification beyond traditional gaming offerings.