J.P. Morgan: SJM’s L’Arc Macau Acquisition Could Add Up to US$45 Million in Annual EBITDA

Investment-bank J.P. Morgan estimates that the acquisition by SJM Resorts of L’Arc Macau could contribute approximately HK$300 million to HK$350 million (around US$38.5-45 million) in annual EBITDA to SJM, suggesting the deal is “value-accretive”.

The deal values L’Arc at HK$1.75 billion (≈ US$225 million), with the property having generated about HK$1.4 billion (≈ US$180 million) of gross gaming revenue (GGR) in 2024 and roughly HK$1.3 billion (≈ US$167 million) in the first ten months of 2025, using 45 gaming tables. 

J.P. Morgan further notes that L’Arc currently accommodates 283 rooms, and is located on the peninsula within a competitive zone alongside major resorts. With the acquisition, SJM would not need major capital upgrades given that the room quality aligns with SJM’s existing peninsula properties. The bank sees upside potential if SJM adds more tables — L’Arc has physical capacity for 90–100 tables. 

From a financial-leverage standpoint, the extra EBITDA from L’Arc could raise SJM’s overall group EBITDA by about 8 %-9 % at current run-rates, reflecting a meaningful improvement in profitability and potentially lower risk for its debt profile.