Morgan Stanley: Hotel room prices in Macau during the Lunar New Year have increased by nearly 30% year-on-year, expecting February gaming revenue to rise by 13% year-on-year

Morgan Stanley's research report indicates that during the first five days of last year's National Day Golden Week, Macau's average daily gaming revenue was approximately MOP 1.1 billion. Due to this year's Lunar New Year holiday occupancy rate being similar to that period, and the average daily room rate (ADR) being about 25% higher, it is expected that this year's Lunar New Year holiday gaming revenue will be comparable to last year's National Day Golden Week, or even stronger.

The bank's data shows that this year's Lunar New Year holiday daily room rate is 25% higher than last year's National Day Golden Week and 29% higher than the same period last year; the occupancy rate (number of days rooms were sold out) is similar to last year's National Day Golden Week but has decreased by about 7 percentage points compared to the same period last year.

Based on the higher occupancy rate, the bank expects that this year's post-holiday demand will continue for a longer period, supporting its expectation of a 13% year-on-year growth in total gaming revenue for February. At the same time, the bank expects the industry's EBITDA for the first quarter of this year to grow by 16% year-on-year, prompting the market to raise profit forecasts