MGM China Holdings said in a statement late last week that due to damage caused by Super Typhoon Hato on August 23 the opening of its resort in Cotai would be “slightly delayed” from its previous expected opening in the fourth quarter of the current year to January 29 of 2018.
The opening would take place about a fortnight before the Chinese New Year of the Dog on February 16.
Friday’s “inside information” statement to the Hong Kong Stock Exchange pointed out that Hato was the strongest storm to have hit Macau in 53 years, adding that it was the first time in 18 years that the local weather station issued a No. 10 tropical cyclone warning signal.
“MGM COTAI was also damaged by this unforeseen event,” the statement said, adding that the US gaming company “has since evaluated the situation and developed a revised schedule for completing repair works and processing governmental inspections necessary for obtaining relevant licences to operate MGM COTAI.”
The statement said that “as a result” the expected opening of MGM COTAI would have to be postponed to Monday, January 29.
MGM China Holdings also said in the statement that it “currently anticipates that any damage caused by Typhoon Hato will be substantially covered by its insurance,” adding that the company “has reassessed its project costs, and the overall budget of the project is expected to increase of approximately HK$26 billion to approximately HK$27 billion, excluding land [costs] and capitalised interest”, an increase of around 3.8 percent.
MGM COTAI will be the company’s second integrated casino, hotel and entertainment complex in Macau. Its first resort is located in Nape.