Casino operator Las Vegas Sands Corp (LVS) plans to spend US$8.0 billion to develop the second phase of its Marina Bay Sands complex in Singapore.
The new phase – dubbed “MBS IR2”, standing for ‘integrated resort’ – will include a fourth tower (pictured left in a rendering) with over 570 rooms, additional casino space, a 15,000-seat arena, a sky roof, retail, restaurants, and about 110,000 square feet (10,219 sq. metres) of space for meetings and exhibitions.
The new price tag for the second phase of Marina Bay Sands, up from the original US$3.3 billion investment announced in 2019, comprises US$2.0 billion in total land premiums, and an estimated US$4.7 billion in design, construction and other related costs.
Pre-opening and financing costs are estimated at US$1.3 billion, stated Las Vegas Sands on Wednesday in a presentation deck accompanying its third-quarter earnings announcement. Las Vegas Sands is also the parent of Macau operator Sands China Ltd.
Las Vegas Sands said in the presentation deck that it submitted this month the development application to Singapore’s Urban Redevelopment Authority. It expects piling and foundation work to start in June 2025, with an expected opening date of January 1, 2031.
The MBS IR2 project has faced a number of delays and changes, with the start of construction postponed by several years. Earlier this year, Las Vegas Sands had said it expected the expansion of Marina Bay Sands to be completed by July 2029.
In its latest presentation, Las Vegas Sands said it expects about 25 percent to 35 percent of total project costs of MBS IR2 to be funded with equity, with the remaining 65 percent to 75 percent through project financing.
The firm said the new hotel tower will include a main casino area in the podium and what the presentation described as “sky gaming” in the higher floors. That is understood to be a high-end gaming space catering to VIP patrons, like what was introduced in September on levels 53 and 54 of Tower 2 at the property.
Las Vegas Sands spent US$1.75 billion revamping the existing three towers of Marina Bay Sands. Revamp work – now focused on Tower 3 – is expected to be completed in the second quarter of 2025. Once completed, the existing complex will feature 775 suites and 1,069 refurbished rooms.
“Full-blown casino”
Rob Goldstein, Las Vegas Sands’ chairman and chief executive, said on Wednesday’s conference call with analysts that the “biggest change” regarding MBS IR2 is the inclusion of a “full-blown casino” in the new tower. “This building is no longer just a hotel supporting IR1,” he stated.
“This [new project] has a laser focus on the premium-mass segment,” said Mr Goldstein. “This project reflects a lot of capital being directed at a very, very strong customer segment and a unique asset.”
He added: “We’ve told you before, we expect IR1 to get to US$2.5 billion [in EBITDA], and we believe this new building can make in excess of a billion dollars on top of that.”
The Singapore complex recorded adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) of US$406 million in the three months to September 30, which the company attributed to “substantial disruption” related with the revamp work during the quarter.
“During the quarter we had about 1,600 rooms available, versus about 2,100 rooms available last year,” said Patrick Dumont, Las Vegas Sands’ president and chief operating officer, on the call. “We also have some casino floor work going on, which is disruptive,” he added.
Las Vegas Sands said it would provide specifics regarding the new gaming space at MBS IR2 “over the next coming months”.
“Our new programme creates a full-scale integrated resort development with a full suite of amenities, including gaming capacity,” said Mr Dumont.
“Our goal with this tower is to make it something very different, something that is really extraordinary and helps address the Singapore market, which we know quite well now,” he added.
“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 substantia value to us in the long term,” stated the COO.
