Resorts World Sentosa (RWS) operator Genting Singapore is expected to see its 2Q24 EBITDA decline by 35% versus the March quarter to around SG$245 million, according to investment bank Morgan Stanley.
The decline is multi-faceted, said analysts Praveen Choudhary and Gareth Leung, primarily a result of seasonality, lower visitation and 23% fewer hotel rooms in operation but also in part due to a recent nearby oil spill.
The spill from vessels on 14 June has seen several areas along the shorelines of Singapore impacted, Morgan Stanley, noted, including Tanjong beach, Palawan beach and Siloso beach on Sentosa Island.
“The beaches remain open but water activities will not be allowed,” the analysts wrote, adding that Singapore’s government is still working on cleaning up the oil.
“These beaches may not essential to most RWS visitors, in our view, [but] we think the event could impact visitation and potentially revenue for 2H of June and July.”
Morgan Stanley’s 2Q24 EBITDA estimate for Genting Singapore represents 80% of 2019 levels.
As reported by Inside Asian Gaming, Genting Singapore is expecting to start work on a SG$6.8 billion (US$5 billion) waterfront expansion this year, with the development to add around 700 hotel keys to the RWS offering among multiple other attractions.
The company is also upgrading around 1,200 hotel rooms across three of its hotels, formerly the Hard Rock Hotel Singapore, Hotel Michael and Festive Hotel.
