Las Vegas Sands’ planned expansion of its Marina Bay Sands resort in Singapore is set to cost $8 billion, more than double its initial estimate, the company announced in its latest earnings report. The expansion, which aims to boost the property’s luxury gaming and hospitality offerings, was originally projected at $3.4 billion in 2019.
Chief Operating Officer Patrick Dumont explained that the revised plan has evolved into a full-scale integrated resort with enhanced gaming facilities, contributing to the increase in cost. The new development will feature a 570-suite luxury hotel, gaming areas, a 15,000-seat live entertainment arena, and a conference space covering 110,000 square feet. The expansion is expected to open in early 2031, pending government approval.
The move is part of Sands’ strategic focus on growth in Asia, following the company’s 2021 decision to sell its Las Vegas properties.
Sands’ shift toward Asia has been influenced by the challenges faced in Macau, where the company suffered significant losses during the COVID-19 pandemic due to travel restrictions. The future of Macau, the world’s largest gambling hub, remains uncertain as China pushes the region to diversify its economy away from gaming to curb capital outflow and tackle money laundering.
Sands reported a profit of $991 million for the third quarter of 2024, down 11.7% from the same period last year. The drop in earnings was attributed to lower-than-expected win rates from Singapore and disruptions caused by renovation works at one of its resorts in Macau. However, analysts at JPMorgan Chase highlighted the better-than-expected performance in Macau, driven by strong cost controls and stable market share.
Original article: https://www.yogonet.com/international/news/2024/10/28/83021-las-vegas-sands-39-singapore-casino-expansion-costs-double-to-8-billion
