MGM China announces delay in MGM Cotai opening due to Typhoon Hato
Typhoon Hato came through Macau in late August, leaving destruction in its wake. Buildings were destroyed or damaged, power outages were widespread and residents of the area were in need of water, food and shelter. Time will be needed for emotional and physical recovery. Several businesses were affected by Typhoon Hato as well, including casino gaming venues. MGM China recently announced that the opening date for their new resort, MGM Cotai, is now changed based on the significant damage caused by the storm.
Previously, the resort was to open during Q4 of 2017. GGRAsia has reported that in filing to the Hong Kong Stock Exchange on Friday, MGM China reportedly said that their previous opening date will not be met and the company has delayed the launch until January 29th of next year.
Several casinos in Macau had to close down because of Typhoon Hato in August this year. Typhoon Hato was the strongest storm to affect the area in over 50 years, with ten individuals losing their lives, massive flooding and power outages taking place.
MGM Cotai was not spared during the storm, with damage taking place and repairs needed. The damages will see inspections by the government delayed. These inspections must be completed if the integrated resort is to be able to obtain operating licenses. MGM does believe the damages are covered by the property insurance but either way, the repairs that are needed will change the overall cost of the project with the budget increasing to HKD 27b from HKD 27b, not considering land or capitalized interest.