Analysts are bearish about MGM Cotai’s prospects, and they all agree on the reason why: room size. According to a recent report by GGRAsia, several analysts are worried that until the resort can increase their number of large suites, it will lose out to the competition.

Australian investment bank Macquarie Capital Ltd., after comparing the resort to its Cotai competition, stated:

“[MGM Cotai] may be too base mass-centric, and given limited cross-play/traffic on Cotai versus the peninsula, the property’s core room sizes may not attract enough quality overnight guests needed to quickly ramp EBITDA [earnings before interest, taxation, depreciation and amortization].”

The 43 square meter room size (463 square feet) of a MGM Cotai standard room might be good enough for an average joe like me, but it won’t compete well with larger room sizes found in the majority of the other resorts in Cotai. Only five operators of the 18 have smaller rooms. So if I’m going to Cotai anytime soon, my wife would probably be happier if we stay at one of the other resorts.