CASINO

Permira to sell Galaxy stake; Macau sees hotel visitors rise

TAGs: Galaxy Entertainment Group, Macau, Permira

Galaxy Macau resortInvestors will be excited at rumors that a small piece of one of Macau’s largest casino groups might be about to become available. According to reports on Bloomberg, Permira Advisors is looking to sell its stake in Galaxy Entertainment. The company bought the 20% stake in late 2007 for an estimated US$1.7billion (MOP13.6billion). Bloomberg cited two sources as having knowledge of the plans although none of the details have yet been formalized. The reason they’ve decided that now is the time to pass on their stake to another universe is unknown. It’s highly likely that given the fact Galaxy’s shares jumped 80% over the past six months that Permira are aiming to cash in. After all, who doesn’t like a suitcase full of crisp, green dollar bills? It also comes just after Galaxy opened their newest resort on the enclave to much acclaim and given that the Macau bubble keeps growing, Permira might want to get out before the bubble gets ruptured.

The enclave itself saw hotel visitor numbers rise in the month of April after warnings that day visitors were becoming more commonplace. Compared with the previous year, hotels and guesthouses saw 676,000 guests a figure that was up 1.7%. Most of those staying were from Mainland China (53.4%) and Hong Kong (20.9%). Guests were still only staying for an average of 1.4 nights though. That figure was the same as last year and shows there obviously are people who like to follow up a successful night on the casino floor with just the one night of hot and steamy lovemaking. It does reiterate the fact that Macau’s casinos will need to diversify in order for hotels to see visitors coming for longer than a mere night or maybe two.

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