Casino operator Galaxy Entertainment Group (GEG) has signed a $ 1.6 billion contract with China Construction, a subsidiary of China State Construction Engineering Corp., to build Phase 4 of its Galaxy Macau gaming resort on the island Completed Cotai.
Cotai is a 5.3 km² man-made island that was dredged to give Macau more room for hotels and casinos.
The first two phases of Galaxy Macau had five themed hotels. In phase 3, which is currently under construction, 1,500 hotel rooms, some casino rooms and the “Galaxy Arena” with 16,000 seats and 37,000 m² of conference and exhibition space will be added.
In phase 4, 2,000 hotel rooms are added, but little play area.
According to the legally binding letter of intent signed with China Construction, the work is expected to take 1,053 days – just under three years, GEG said (pdf) yesterday in a notice to the Hong Kong Stock Exchange.
After completion of phases three and four, the size of the resort will double to 2 million square meters, making it one of the largest leisure and conference destinations in the world.
Galaxy Entertainment's current gaming rights in Macau will expire in June 2022, as will those of the city's other five casino operators.
A public retender process is to take place in connection with the expiry times, although the government of Macau also has the option to extend the current licenses for up to five years.
GEG is one of the three original concessionaires in Macau and listed on the Hong Kong Stock Exchange. Most of the holdings are in Macau, although the company is also represented in Monaco.
Image: Galaxy’s existing Cotai Casino Resort opened in 2011 (Abasaa / Public Domain)