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In a strategic move marking its first major hospitality expansion into mainland China, Macau gaming concessionaire SJM Holdings Limited has finalized an approximately US $101.2 million (RMB 724 million) acquisition of 12 floors of office space in Hengqin—an island next to Macau—intending to convert the space into a three‑star hotel by as early as 2028. This deal builds upon preliminary plans announced in December 2024 and reflects a meaningful shift toward broader Greater Bay Area integration and tourism diversification .

The property, known as Xin De Kou An Shang Wu Zhong Xin, spans 19,781 sqm across 12 strata‑titled office floors and includes retail space. SJM will pay in seven instalments over the next two years—with the larger portion covering acquisition and the rest earmarked for conversion costs. The renovation timeline is slated for completion within 24 months, paving the way for the facility to open around 2028.

SJM chairperson and managing director Daisy Ho framed the transaction not merely as a portfolio expansion, but as a strategic alignment with national initiatives aimed at deepening cross-border tourism. She stated, “This project represents more than an expansion of our hotel portfolio. It reflects our strong alignment with national strategies to deepen integration between Hengqin and Macau, and our firm belief in the long‑term growth potential of cross‑border tourism and cooperation,” adding that “through this investment, we are taking an active role in shaping the Greater Bay Area’s tourism future”.

The planned mid-range hotel is expected to house roughly 250 rooms, offering a cost-efficient option for mass-market travelers while complementing SJM’s luxury assets such as Grand Lisboa, Grand Lisboa Palace, and other Cotai resorts. Located adjacent to Hengqin Port and connected via the Macau Light Rapid Transit’s Hengqin line, the site benefits from seamless accessibility for cross-border visitors, further reinforcing its strategic importance.

Industry observers note that Macau is experiencing a shortage of hotel rooms, especially at the mid-tier level, which makes outgoing visitors increasingly receptive to options in proximate Hengqin. Local policy reforms now permit vacant commercial and technology-designated buildings to be converted into hotel accommodations—an initiative that SJM is tapping into with this project. The development also underscores Macau’s ongoing strategic pivot toward “tourism+” and economic diversification beyond gaming.

By anchoring its new hotel in Hengqin, SJM is effectively positioning itself to capture rising demand for mainland‑based accommodations, capitalize on surging cross-border traffic, and contribute to the Guangdong–Macao Greater Bay Area integration roadmap. The project not only enhances SJM’s asset mix but represents medium-term revenue potential in a region where land for new development within Macau is limited.

As SJM moves ahead, the project will serve as a test case in whether Macau’s gaming companies can successfully extend their hospitality footprint beyond the SAR’s borders, while maintaining service quality and brand resonance. With renovations underway and a planned opening by 2028, all eyes are on whether this bold iteration of cross-border cooperation will deliver both scale and sustainability in a post‑pandemic travel landscape.