Major Upgrades Planned for Iconic Singapore Resort
SINGAPORE: The much-anticipated US$3.3 billion expansion of Marina Bay Sands is now scheduled for completion in 2026, extending the timeline by a year from the original target of 2025, as announced by parent company Las Vegas Sands.
In addition, a significant US$1 billion (S$1.35 billion) renovation of the hotel properties at Marina Bay Sands was revealed by Las Vegas Sands CEO and Chairman Rob Goldstein during an earnings call last Thursday (Jan 27).
Las Vegas Sands President and COO Patrick Dumont stated that the company has opted to reinvest in the hotel during its “downtime” to enhance the quality of suites and amenities. “This initiative aligns with the goals outlined by the Singapore Tourism Board and the Government, as well as our aim to expand our presence in high-value tourism,” he explained.
Addressing concerns about potential disruptions caused by the COVID-19 pandemic, which has delayed various construction projects, Mr. Goldstein assured that the renovation is “progressing at a really good pace.” Mr. Dumont estimated that the renovation work would likely take two years due to the current availability of labor and materials.
Confidence in Recovery
Mr. Goldstein expressed strong confidence in the long-term prospects for Singapore, highlighting the demand for vaccinated travel lanes (VTL) as a positive sign of recovery. “This is a real predictor of what will happen when Singapore reopens. We hope to see this in the first half of the year,” he said.
He noted the disappointment over the recent halving of VTL quotas since January 21, which followed a freeze on new ticket sales from December 23 to January 20 due to concerns about the rapidly spreading Omicron variant. However, with key source markets for tourists reopening, Mr. Goldstein remains optimistic about a significant rebound in Singapore.
The earnings of the casino and resort developer, which also operates properties in Macao and Las Vegas, were still affected by group size limits and travel restrictions during the fourth quarter of 2021. Marina Bay Sands reported an earnings before interest, tax, depreciation, and amortization (EBITDA) of US$177 million for the last quarter, marking a 22.9 percent increase from 2020. Net revenue for the quarter reached US$368 million, a 6.7 percent rise compared to the previous year.
For the entirety of 2021, Marina Bay Sands reported US$1.37 billion in net revenue, up from US$1.26 billion the year prior.
The expansion of Singapore’s integrated resorts—Marina Bay Sands and Resorts World Sentosa—was first announced in 2019, worth a combined S$9 billion, representing almost two-thirds of their initial S$15 billion investment made in 2006. The commitment to expand their non-gaming components was part of an agreement to extend the exclusivity period for their two casino licenses until the end of 2030, as previously stated by then Minister for Trade and Industry Chan Chun Sing.
The US$3.3 billion expansion of Marina Bay Sands will introduce a performance arena, a fourth tower with approximately 1,000 hotel rooms, a sky roof featuring a swimming pool and restaurant, along with new ballrooms, exhibition halls, and luxury retail options. Meanwhile, Resorts World Sentosa plans to unveil two new attractions at Universal Studios Singapore—Minion Park and Super Nintendo World—alongside an expanded aquarium, a new waterfront lifestyle complex, and two additional hotels.
