Las Vegas Sands has revealed it will spend a massive US$8 billion on its new Singapore integrated resort tower, describing the project as an entirely new development as opposed to a basic expansion of its existing Marina Bay Sands property.
Dubbed “Marina Bay Sands IR2”, the project is slated to boast its own casino amenities, including a main casino area in the podium plus “sky gaming” in the new tower, as well as 570 luxury suites, a 15,000-seat arena, 110,000 square feet of MICE space, its own SkyPark and high-end F&B.
The new costing, coming in at two-and-a-half times more than the original US$3.3 billion investment announced in 2019, comprises US$4.7 million in design and construction costs, US$2 billion in land premiums and US$1.3 billion in pre-opening and finance costs, LVS revealed in its 3Q24 earnings presentation.
Construction is slated to begin by June next year with an estimated opening date of 1 January 2031. The company added that it expects to contribute between 25% and 35% of the project cost directly with the remaining 65% to 75% through project financing.
Providing some color during the company’s quarterly earnings call on Thursday morning (Asia time), LVS President and COO Patrick Dumont noted that while the original concept was for an expansion of the existing Marina Bay Sands property, “Our new program creates a full-scale integrated resort development with a full suite of amenities including gaming capacity.
“Our goal with this tower is to make it something very different,” he said. “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.
“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.
“It’s going to be a very important, globally significant asset for tourism but it’s going to be very specific to a very high-end segment that we’re dealing with today, hence the investment.”
LVS Chairman and CEO Robert Goldstein added that he expects Singapore GGR to reach US$6.5 billion in 2024 but said this could grow to as much as US$11 billion long-term. Marina Bay Sands IR2, he explained, is seen adding another US$1 billion in annual EBITDA to the company’s bottom line.
“[The new project] has a laser focus on the premium mass segment,” Goldstein said. “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.”
LVS said an ongoing US$750 million investment into upgrading MBS Tower 3 was due for completion by 2Q25. The renovation includes the introduction of redesigned rooms and suites, a lobby and VIP arrival renovation, additional dining and F&B options, and spa and wellness facilities.
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