Galaxy Macau Cotai Delays Opening to 2010
Galaxy Entertainment has announced that they have delayed the scheduled opening of Galaxy Macau to 2010. And yes, they changed the name of it AGAIN! Galaxy Macau.
Here's the statement:
Construction work on Galaxy Macau continues and we have revised the development schedule to better align the opening with market conditions as they improve. This is in no way a change in our strategy for Cotai, it is a commercial decision motivated by our objective to achieve a balance between development and the optimization of shareholder returns. We are well capitalized with approximately HK$6 billion in cash and are fortunate to be at a stage in the projectís development where we have the flexibility to control timetables without incurring material adverse costs.
We are confident that, together, the exciting potential of Galaxy Macau and the strong prospects for StarWorld will ensure that we are well positioned to meet current and future challenges and opportunities.
So.... what does this mean? Is this a simple time frame adjustment or is it another example of Galaxy being prudent with their spend and development scheduling? Probably both. They say they have liquidity and financing in place...
Galaxy remains fully committed to the development of Galaxy Macau, its integrated resort development in Cotai. After careful consideration of the prevailing local market conditions and the substantially changed global economic environment, Galaxy is revising its Cotai development schedule. This is in no way a change in our strategy or our long-term faith in Cotai, we believe that it is a prudent decision to move the staged opening from mid 2009 to 2010. Under this revised timetable, the second of the two hotel towers is expected to be topped-out in January 2009 with its glass cladding and the landscaping of the entire resort beginning in the first quarter of 2009. The majority of these activities are expected to be completed by the fourth quarter of 2009. The final fitting out of the property will be carefully managed to meet the revised opening schedule, and we anticipate being able to provide greater clarity on this within the first half of next year.
"Soft Pedaling Spend (On Our New Resort)" is slowly becoming one of my new favorite songs.