MGM China Ltd has revised upwards the maximum fee the group may be required to pay to Hong Kong-listed Shun Tak Holdings Ltd in 2025 for the use of its Macau hotel rooms and associated services by HK$20 million (US$2.6 million) to HK$200 million (US$25.7 million).
Shun Tak’s Macau hotels include Mandarin Oriental and Artyzen Grand Lapa.
MGM said in a filing that the revised cap was necessary due to an expected increase in demand for offsite gaming accommodation and the amount of room purchases by the group. As such, the aggregate amount to be paid to Shun Tak for the remainder of the financial year under the two companies’ Fourth Renewed Master Service Agreement is expected to be higher than envisaged at the time of entering into the agreement.
