In a recent interview, Global Gaming Business asked Melco Crown CEO Lawrence Ho to give his take on the future of the Macau Studio City project. Here is Ho’s complete response.
Global Gaming Business: The Macau Studio City project had been delayed for some time. Why did you decide that now was the time to take control of the project?
Ho: After the launch of Melco Crown Entertainment’s flagship integrated resort, City of Dreams, two years ago and its iconic entertainment, The House of Dancing Water, the world’s largest water-based show, almost one year ago, we believe this opportunity comes at a perfect time to further strengthen our position and market leadership in Cotai, Macau. With a limited upcoming supply anticipated in Cotai, we believe Macau will remain a supply-constrained market in the near term.
We are very glad that the Macau government, investors and the community have been supportive after the announcement was made. While the status of Macau Studio City has been uncertain for some time, the negotiations between the various parties on this transaction have been relatively efficient, particularly in light of the complexity of the previous shareholdings.
We believe the proposed acquisition of a majority stake in the Macau Studio City project meaningfully broadens our portfolio in Macau, allowing us to operate a wider spectrum of casino resorts, to enhance our people’s career prospects and to maximize shareholders’ value.
We have been in active dialogue with the Macau government and believe our proposed project is in line with the Macau government’s objectives to maintain measured and sustainable growth within the market, with product offerings that will further elevate Macau as the premier leisure destination in Asia.
We also thank the Macau government for their confidence in Melco Crown Entertainment to take over this compelling entertainment and lifestyle-centric integrated resort project.
FOR DETAILS ON THE STUDIO CITY PROJECT SEE COVER STORY