American casino operator, Las Vegas Sands Corporation, has reportedly utilized a conference call to discuss its most recent second-quarter financial results to update investors about the firm’s ongoing expansion efforts in Singapore and Macau.
According to a Thursday report, the Las Vegas-headquartered giant had earlier unveiled plans to spend approximately $3.3 billion in order to bring a fourth hotel tower to its Marina Bay Sands venue in Singapore. The company purportedly used the recent update to detail that its design calls for this 1,000-key all-suite facility to feature a ‘sky roof with a swimming pool and other tourism attractions’ and be joined by a 15,000-seat arena ‘designed specifically’ to host a range of live musical events.
This revelation from Robert Goldstein, President and Chief Operating Officer for Las Vegas Sands, included a disclosure that the expansion is to also host a selection of high-end shops as well as additional spaces for exhibitions and meetings and be ‘in operation’ by the first day of 2024.
GGRAsia reported that the expansion plan is all part of commitments Las Vegas Sands and local rival Genting Malaysia Berhad, which runs the nearby Resorts World Sentosa venue, made to the government of Singapore in April in order to have the jurisdiction’s current casino duopoly extended until 2030. Although the envisioned Marina Bay Sands extension is not set to feature any more space for gaming, Goldstein purportedly noted that his firm was already pressing ahead with changes to the facility’s existing mass-market casino floor and intends to open new high-roller services on its second and third floors by the end of 2021.
Goldstein reportedly told investors…
“Our mass casino floor is going through renovation currently and we’ll open renovated by the summer of 2020. Keep in mind we are adding additional slot machines in late-2020; we’ll have another 400 roughly and the balance in 2021. So 500 [new] games on the floor in 2021. The market does $700 to $800 per unit per day; it’s pretty impactful.”
As to how it is to pay for the expansion of its Singapore property, Las Vegas Sands declared that it was ‘conducting a process to raise a delayed-draw term loan under the existing Marina Bay Sands credit facility’. The firm purportedly furthermore explained that it expects this endeavor will raise around $2.8 billion before the end of October and be complemented by the receipt of some $185 million from the alteration of the venue’s existing credit facility.
Las Vegas Sands in Macau is spending approximately $2.2 billion in order to renovate its Sands Cotai Central property and rebrand the 6,000-room venue as The Londoner Macao. Goldstein told investors that his firm had recently completed all of the external work on an extension to the adjacent Four Seasons Tower Suites Macao but that it had subsequently altered the final design for this up-market facility by dropping a plan that was to see it feature condominiums that were to be made available for sale.
“We’re building 1,200 exceptional suites at The Londoner Macao and the Four Seasons Tower Suites Macao and these are large, very large stunning suites of the highest quality. Some will open actually this autumn throughout 2020 and these suites are laser focused on premium-mass customers at the highest level.”
Las Vegas Sands additionally proclaimed that there are to be ‘290 new suites in the Four Seasons Tower Suites Macao by the first quarter 2020’ and that these will be joined by ‘370 new suites in The Londoner Tower Suites Macao in late-2020.’ The operator purportedly finished by stating that these are to be gradually complemented by the addition of more meeting, incentive, conference and exhibition space as well as extra ‘retail, entertainment and luxurious suite offerings’ throughout the next two years.
Regarding its second-quarter financial results, LV Sands recorded a 71.6% rise year-on-year in net profits to $954 million, which had included a one-off gain of some $556 million courtesy of the $1.16 billion sale of its Sands Casino Resort Bethlehem in May to the Wind Creek Hospitality enterprise of the federally-recognized Poarch Band of Creek Indians.