Galaxy Entertainment Group Ltd. is taking a 5 percent stake in a Monaco hotel and casinos operator established in 1863. The shares in Societe des Bains de Mer et du Cercle des Etrangers a Monaco (SBM) are being provided by a third party.
Galaxy is a Macau casino operator controlled by billionaire Lui Che-Woo. The company owns six properties in Macau and on the Cotai Strip including the recently opened Broadway Macau and recently expanded Galaxy Macau Casino.
The move would appear to be a diversification to hedge against the steady and seemingly open-ended downturn in the Macau market which has experienced more than a year of month on month revenue declines.
SBM is partially owned by the state of Monaco who control 34% of the shares. SBM manages and owns casinos, hotels, restaurants, bars, night clubs, spas, beach clubs, and golf clubs. The Monte Carlo company was founded by Charles III, François Blanc, and Marie Blanc. Casinos in their portfolio inlcude Monte Carlo Sporting Club & Casino, Opéra de Monte-Carlo, and Hotel de Paris; all three of which have been in operation since the 1800’s.
Bloomberg reports that separately, LVMH Moet Hennessy Louis Vuitton SE will also take a 5 percent stake in SBM, Monaco’s largest employer.