Casino operator Las Vegas Sands Corp expects The Londoner Macao gaming resort in Macau to achieve annual earnings before interest, taxation, depreciation, and amortisation (EBITDA) of at leat US$1.5 billion, once the renovation of the property is completed.
That is according to Daniel Briggs, senior vice president of investor relations at Las Vegas Sands, parent of Macau-based Sands China Ltd. Hi remarks were during the recent JP Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum, held in the United States, according to a note from the investment bank.
“Management [of Las Vegas Sands] sees The Londoner [Macao] run-rating US$1.5 billion to US$1.7 billion of EBITDA upon completion of its capex [capital expenditure] priorities, up from its current US$750 million to US$800 million,” wrote analysts Joseph Greff, Ryan Lambert and Samuel Nielsen.
The casino operator’s nearly US$3-billion investment at The Londoner Macao “is focused on reaching 4,000 high-end suites for the wealthiest customer,” the analysts added, citing comments by Mr Briggs.
Las Vegas Sands announced earlier this year an additional US$1.2 billion for Phase 2 of the renovation of The Londoner Macao property (pictured).
The second-phase revamp of what used to be the Sands Cotai Central complex, in Macau’s Cotai district, began in November, and should be “substantially completed by Chinese New Year 2025,” according to the company.
Phase 2 of The Londoner Macao will include the renovation of the Sheraton and Conrad hotels, as well as the revamp of the Pacifica casino space. The company said it would add “new attractions, dining, retail and entertainment offerings” to the property.
The firm said it expected “some disruption” to operations at The Londoner Macao “in the second half” of this year.
Following a US$1.35-billion investment for Phase I, The Londoner Macao now features the architecture of the Palace of Westminster in London, including the clock tower popularly known as Big Ben. An additional US$400 million was spent on developing Londoner Court, an accommodation tower with circa 370 suites.
The property generated adjusted EBITDA of US$516 million in full-year 2023, versus a negative figure of US$189 million in the prior year.
According to JP Morgan, Las Vegas Sands is planning to invest in the Venetian Macao property, across the road from The Londoner Macao, in order to “grow its higher-end suite product”. There was no mention either to the planned investment or timeline.
According to the institution, the casino firm’s management thinks that the Macau market is “under supplied”, with “only 6,000 table games and 30,000 to 40,000 hotel rooms … for a Chinese population of 1.5 billion”.
In mid-2022 the Macau government announced a cap to the number of gaming tables and gaming machines that can be exploited at any one time by the city’s six gaming concessionaires.
The maximum number of gaming tables was set at 6,000, while the number of gaming machines was capped at 12,000.
