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SJM Holdings said it is focusing on improving asset productivity, strengthening its premium customer offering, and increasing operational efficiency after moving to a direct management model. The Macau casino operator outlined the strategy in its 2026 Interim Report, published Monday.
The company said it has begun a coordinated program across its gaming, hotel, and non-gaming operations. The work includes upgrades at properties on the Macau peninsula and changes to gaming areas at Grand Lisboa Palace Resort Macau in Cotai.
SJM’s direct management model followed the Macau government’s required closure of satellite casinos last year. 8 satellite casinos had operated under the SJM concession, while Casino L’Arc was acquired by the group and added to its fully owned operations at the end of 2026.
The transition created pressure for the company, particularly because it was required to retain all staff from the former satellite operations. SJM said this contributed to lower margins and a decline in market share, although it has since made progress in improving the appeal of its properties.
Peninsula Properties Undergo Upgrades
SJM operates Grand Lisboa, Hotel Lisboa, L’Arc, and Casino Oceanus at Jai Alai on the Macau peninsula. The company said it is upgrading these properties to strengthen the competitiveness of its downtown portfolio.
At Hotel Lisboa, SJM opened the 2nd phase of its Crystal Palace gaming area in August. It also completed the refurbishment of 400 hotel rooms.
The company said it expects refurbishment work on its deluxe villas and mansion to be completed before the 2027 Lunar New Year holiday. These upgrades form part of its plan to improve facilities and enhance the experience offered across its established Macau peninsula properties.
The work comes as SJM adjusts its operations following the closure of the satellite casino model. The company is now managing its gaming assets directly while directing attention toward the performance of its owned properties.
Grand Lisboa Palace Gaming Changes
At Grand Lisboa Palace Resort Macau in Cotai, SJM said it remains focused on improving its gaming mix, using floor space more efficiently, and increasing returns on invested capital.
Following the transfer of resources from former satellite casinos, the company increased table capacity at the property. It also introduced new gaming spaces, including the Sky Phoenix West Tower VIP area.
SJM reconfigured Dragon Pavilion to support premium-mass gaming operations. It said further work on the main gaming floor is being carried out gradually as part of its effort to improve productivity and strengthen the property’s contribution to group earnings.
The company said the enhancements are intended to improve overall returns from the property. The changes focus on better use of available space, new gaming areas, and a mix of offerings aimed at premium customers.
Cost Measures Continue Across Group
SJM said its strategy also involves turning revenue growth into sustainable earnings. The company has introduced a cost management and operational efficiency program across the group to improve resource allocation, productivity, and operating leverage while maintaining service standards and guest satisfaction.
The program is being carried out alongside improvements to the company’s gaming, hospitality, and non-gaming offerings. SJM said these measures are expected to support efficiency and improve profitability over the longer term.
A recent CBRE Equity Research report showed that SJM had reduced its employee count by 5% since the start of the year as part of wider efforts to improve operating efficiency.
SJM previously reported a net loss of HK$295 million, or US$37.6 million, for the 6 months ended June 30, 2026. The company’s current initiatives are centered on its shift from satellite casino operations to a direct management model, with upgrades and cost controls now underway across its Macau portfolio.
Source: Inside Asian Gaming
