SJM Holdings Limited, the company behind iconic Macao casino-hotels such as the Grand Lisboa and Grand Lisboa Palace, has formalised plans to purchase 12 floors of office space in Hengqin, which it intends to convert into a three-star hotel.
In a statement yesterday, the casino operator said that the 724 million yuan (US$100.86 million) transaction would cover 19,781 square metres of office space at the building known in romanized Chinese as Xin De Kou An Shang Wu Zhong Xin (橫琴信德口岸商務中心), a commercial property located directly across from the Hengqin Port.
SJM stated that the transformation of the acquired office spaces into a hotel would be accomplished “within 24 months.” It envisions the hotel as one component of “an established lifestyle hub” that also consists of “residential, retail and office space.”
According to SJM chairperson, Daisy Ho, the new hotel development is not simply a matter of expanding the company’s list of hotel properties, as it also showcases the group’s commitment to the integration of Macao and Hengqin, and its “firm belief” in “cross-border tourism and cooperation.”
“Through this investment, we are taking an active role in shaping the Greater Bay Area’s tourism future,” Ho said.
The finalised plan for the hotel is somewhat different from what had been announced by SJM last December. At the time, the gaming operator said that the investment would total 546 million yuan (US$76.07 million) and would cover 14,845 square metres of Hengqin office space across 9 stories.
[See more: Hengqin could solve Macao’s hotel shortage, Galaxy boss says]
The acquisition now features an extra 4,936 square metres of space across three additional floors, costing 178 million yuan (US$24.8 million) more than what had been reported.
SJM’s development of its new hotel takes advantage of a policy measure that the Hengqin government introduced last April. Under this initiative, property owners are allowed to renovate eligible empty office space into hotel rooms.
The policy was later expanded in July 2024 to include other categories of buildings, including those that were designated for high-tech and scientific research, as well as buildings originally earmarked for commercial, cultural and creative activities.
Representatives from Macao’s hotel sector have responded to Hengqin’s hotel conversion policy in a positive manner, with Galaxy Entertainment Group chairman, Francis Lui, stating last month that he believes the mainland island can help to make up for the lack of hotel rooms in the SAR.
Meanwhile, Frank Sanders, the vice-president of the Sheraton Grand and St. Regis hotels in Macao, told TDM last year that he was not fazed by Hengqin’s burgeoning hotel industry, as “it brings in some healthy competition” to Macao.
