Project award comes amid a furious casino building frenzy
A Macau subsidiary of French contracting giant Bouygues Construction has won a contract worth HK$3.68 billion to build a new 6-star luxury hotel within the City of Dreams entertainment complex of Melco Crown Entertainment (6883).
In a press release Monday, Bouygues said its subsidiary Dragages Macau would build the 39-storey hotel building offering 151,000 square metres of floor space, with 783 bedrooms,10 villas, a casino, restaurants, conference rooms and a sky pool.
“Dragages Macau is responsible for the construction of ‘core & shell’, including reinforced concrete structure, structural steel exoskeleton, curtain wall and cladding,” Bouygues said.
Work was already underway and would last more than three years.
The new hotel will be the fifth hotel tower at the City of Dreams complex which opened for business in June 2009.
Melco Crown is hoping the new hotel will help it grab more of the high-end and premium mass segments of the casino gaming market.
The latest project win for Bouygues, however, comes in the midst of a furious building frenzy as the casino operators rush to complete their second wave of casino development.
In addition to City of Dreams, Melco Crown is currently building the Studio City project which was awarded to the Paul Y-Yau Lee Joint Venture for a contract sum of HK$10 billion.
Paul Y, now trading as Louis XIII Holdings (0577), is building a luxury hotel and casino project of its own in Macau.
Two subsidiaries of mainland giant China State Construction International Holdings (3311) are currently a building a casino project in the Cotai reclamation area worth HK$10.5 billion for MGM China Holdings (2282).
Australian company Leighton Contractors (Asia) is building a luxury integrated hotel resort also in Cotai for a guaranteed maximum price of HK$20 billion for Wynn Macau (1128).
Not to be outdone by its rivals, Galaxy Entertainment (0027) is busy with Phase 2 of its Galaxy Resort and Casino project which was awarded to HCCG Building and Civil Engineering (Macau), a subsidiary of Hsin Chong Construction Holdings (0404).
Galaxy isn’t finished with the project yet, with phases 3 and 4 currently in the pipeline with construction expected to start in early 2014, according to Galaxy’s latest stock exchange notice earlier this month.
The Macau government also has infrastructure work of its own such as the Light Rail Transit project which is currently experiencing project delays and a public housing programme.
All this frenetic building is having a predictable effect on costs.
According to latest figures from the Macau Census and Statistics Service, the average price of concrete (no strength mentioned) was 586 MOP in the third quarter of 2013 compared to 515 MOP in the second quarter.
The local wage for concrete formwork carpenter was 914 MOP in the third quarter of 2013 compared to 793 MOP for the previous quarter.