Las Vegas Sands Corp. has unveiled plans for a groundbreaking development in Singapore, christening the project Marina Bay Sands IR2. This new venture, set to redefine the integrated resort landscape, involves an investment of US$8 billion, marking a significant escalation from the initial US$3.3 billion laid out in 2019. This project is not just an expansion but a comprehensive, stand-alone development poised to become a linchpin in the global luxury and gaming industry.
A new era of luxury and gaming:
Marina Bay Sands IR2 promises an array of world-class amenities and facilities, including a sprawling main casino and exclusive sky gaming experiences in the new tower. The resort will also feature 570 luxury suites, a 15,000-seat arena, and substantial MICE (Meetings, Incentives, Conferences, and Exhibitions) space spanning 110,000 square feet. Additionally, a new SkyPark and upscale food and beverage options are set to further enhance the guest experience.
The financial blueprint for Marina Bay Sands IR2 includes US$4.7 million allocated for design and construction, US$2 billion for land premiums, and another US$1.3 billion covering pre-opening and finance costs, as detailed in Las Vegas Sands’ third-quarter earnings presentation for 2024. The project’s commencement is scheduled for June next year, with doors expected to open on January 1, 2031.
Las Vegas Sands has disclosed plans to fund 25% to 35% of the project costs directly, with the remaining 65% to 75% to be financed through project financing. During the company’s quarterly earnings call, LVS President and COO Patrick Dumont shared, “Our new program creates a full-scale integrated resort development with a full suite of amenities including gaming capacity. This is going to be the most important gaming and hospitality building in the world. It’s going to be the best hotel in the world, and that’s our goal: the best service, the best experience, the best F&B.”
As Inside Asian Gaming reports, Dumont further elaborated on the project’s significance, noting, “Our goal is to create something that is extraordinary and helps address the Singapore market that we know quite well now and has been consuming some of our highest end products over the past 14 years. We’re very aware of the market segments that we’re addressing and we feel like this is a project that will be very accretive to our overall portfolio and create substantial value to us in the long term.”
LVS Chairman and CEO Robert Goldstein also highlighted the strategic focus of Marina Bay Sands IR2, saying, “This project reflects a lot of capital being directed at a very, very strong customer segment. It’s a unique asset for a unique market that is stellar. There are barriers to entry but it’s a proven market and we know who the customer is. We’ve been there for 14 years so we feel very, very confident that these results are going to be terrific.” He projected that the Singapore Gross Gaming Revenue (GGR) is expected to reach US$6.5 billion in 2024, with potential growth to US$11 billion in the long term, attributing an additional US$1 billion in annual EBITDA from Marina Bay Sands IR2 to the company’s bottom line.
Ongoing investments and corporate developments:
Amid these expansive plans, Las Vegas Sands also continues to upgrade its existing properties, with a US$750 million investment into the renovation of MBS Tower 3 due for completion by the second quarter of 2025. This renovation encompasses redesigned rooms and suites, a revamped lobby and VIP arrival area, enhanced dining and F&B options, and new spa and wellness facilities.
In other financial moves, LVS reported a net revenue of $2.68 billion and net income of $353 million for the quarter ended September 30, 2024. The company has also repurchased $450 million of common stock and announced plans for future stock repurchases valued at $2.0 billion, alongside a $0.20 increase in the recurring common stock dividend for the 2025 calendar year, raising the annual dividend to $1.00 per share. Additionally, LVS acquired $44 million of SCL stock, reinforcing its commitment to robust financial strategies and shareholder value.
