Studio City Phase II budget cut to US$1.2bn

Studio City’s Phase II budget has been cut mainly due to the Covid-19 pandemic.

Macau.- Studio City International Holdings Ltd, the promoter of the Studio City casino resort in Macau, has said that the budget for the second phase of the complex had been cut to about US$1.2bn. That’s a 7.7 per cent decrease from the previously announced US$1.3bn investment.

The company stated: “As of November 30, 2021, we had incurred US$661.2m of aggregate costs relating to the development of our remaining project, primarily… the initial design and planning costs and construction costs.”

Phase II will include approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and MICE space. 

Macau casino operator Melco Resorts & Entertainment has implemented a cost reduction program to help manage the company’s challenges due to the Covid-19 pandemic. As a result of these measures, the company expects to break even on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) once it reaches “30 per cent to 35 per cent” of its historical gross gaming revenue run-rate.

Last November, the casino operator reported that it was advancing with Studio City casino resort’s Phase II and expected to complete the development before the deadline it requested in May. The deadline was extended to December 27, 2022, from the original date of May 31, 2022.

Also in December 2021, Melco Resorts & Entertainment confirmed that it was going to bring the W Hotels Worldwide brand to Studio City Phase II after signing a partnership with Marriott International. The company said W Macau – Studio City will complement Studio City’s other hospitality offerings, which include one of Asia’s largest indoor and outdoor water parks, shows, and state-of-the-art MICE space.