By Shirley Zhao
(Bloomberg) — Las Vegas Sands Corp.’s planned expansion of its iconic casino resort in Singapore is expected to cost $8 billion, more than doubling its original estimate as the group seeks to build a new luxury gaming complex to drive growth.
The expansion of Marina Bay Sands, which includes a new property with a 570-suite luxury hotel, is expected to open early 2031, subject to government approval, the company said in an earnings report on Wednesday.
The Marina Bay Sands hotel and casino in Singapore, on Tuesday, 14 May 2024. (PHOTO: Lauryn Ishak/Bloomberg)
The latest cost for the project compares to the original estimate of about $3.4 billion in 2019 as the plan expanded into a full-scale integrated resort with gaming capacity, according to Chief Operating Officer Patrick Dumont.
The new resort will also include a 15,000-seat arena designed to be a live entertainment venue and a conference space of about 110,000 square feet.
Sands has been seeking new growth drivers since it agreed to sell its properties in Las Vegas in 2021 and focused its development largely in Asia. The group suffered losses during the Covid-19 pandemic as its key market Macau implemented stringent travel restrictions. The long-term outlook for the city — the world’s largest gambling hub — is also limited as China pushes the territory to diversify away from gaming in an effort to curb capital outflow and money laundering.
Sands reported $991 million in profit for the three months ended September, down 11.7% from the same period last year mainly due to lower-than-expected win rates from Singapore and disruption from renovation works at a Macau resort. But its Macau profit is better than expected, reflecting steady market share and strong cost controls, said JPMorgan Chase & Co. analysts including DS Kim in a note.
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