GGRAsia – LVS flags US$1bln for Londoner Macao Phase II, ready 2026

LVS flags US$1bln for Londoner Macao Phase II, ready 2026

Jul 20, 2023 Newsdesk Latest News, Macau, Top of the deck

Casino operator Las Vegas Sands Corp has earmarked US$1 billion for Phase II of The Londoner Macao property on Cotai, Macau. The redevelopment is scheduled to start in November 2023 and targeted to be completed by 2026, said the firm in an investor presentation published on Wednesday.

Las Vegas Sands is the parent of Macau operator Sands China Ltd. The group reported on Wednesday its earning results for the second quarter of 2023.

According to the presentation deck, Phase II of The Londoner Macao will include the “renovation and repositioning” of the Sheraton and Conrad hotels, as well as the renovation of part of the property’s casino space.

The company said it would add “new attractions, dining, retail and entertainment offerings” to the property. The aim is also to introduce “new health and wellness experiences,” it added.

The casino firm expects to spend US$50 million this year for the second phase of The Londoner Macao, followed by US$350 million in 2024. Another US$300 million will be spent in each of the subsequent two years, detailed the presentation deck.

The firm held a formal launch event in May for The Londoner Macao, including an opening for its 6,000-seat arena. The resort – which was already in use prior to May’s launch event – represents the rebranding and major reconfiguring of a Cotai venue that used to be known as Sands Cotai Central.

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 Londoner Macao features five accommodation products: The Londoner Hotel, Londoner Court, Conrad Macao, The St Regis Macao, and Sheraton Grand Macao.

Patrick Dumont, president and chief operating officer (COO) of Las Vegas Sands, said on Wednesday that the second phase of The Londoner Macao would “hopefully” allow the group to “tap into the absolute earning power” of the property.

“There’s a lot of potential growth in our deepest and most profitable segments, which is mass and premium mass,” he added.

Mr Dumont was speaking on a conference call following the firm’s second-quarter earnings announcement.

“With the revised or renovated hotel … we think we’ll be able to address the market incredibly well, just like we did with the first phase of The Londonder Macao,” stated the executive.

Also on the call, Grant Chum Kwan Lock, Sands China’s COO, said that “most of the hotel room accommodation” at rebranded The Londoner Macao “still remains the original Sands Cotai Central rooms, as is half of our main gaming floors”.

He added: “So, Phase II is really about making Londoner more Londoner. We need to reposition and upgrade the Sheraton and Conrad hotels as well as [to do] a comprehensive upgrade of the Pacifica Casino on the Sheraton side.”

Mr Chum said the non-gaming amenities and attractions to be added to The Londoner Macao are part of the group’s “concession commitments”. That includes “more signature restaurants that have international appeal, [a] state-of-the-art wellness centre, [and] other sort of lifestyle attractions,” he added.

Sands China has pledged to the Macau government to invest MOP30.0 billion (US$3.73 billion) up to the 2032 end of its new concession, with MOP27.8 billion of that to go on “non-gaming projects that will also appeal to international visitors”.

As part of its concession commitments, the company plans to transform a 50,000 square-metre (538,196 sq-feet) garden next to The Londoner Macao, by adding a glass conservatory to create an “internationally unique garden-themed destination”.

On Wednesday, Mr Chum said the “landmark garden-themed attraction” would “take a longer time frame to develop” than the second phase of The Londoner Macao.