Las Vegas Sands Corp (LVS) might invest further in its SkyPark Observation Deck and other areas of its Marina Bay Sands casino resort property (pictured) in Singapore.
That is according to banking group JP Morgan in a memo based on discussions with Las Vegas Sands management, including its recently-appointed chairman and chief executive, Patrick Dumont.
JP Morgan stated: “Management could further invest to improve its SkyPark, F&B [food and beverage] and lobby.”
The bank added: “On the step-change in Marina Bay Sands’ performance the past few quarters, management highlighted its large base of high-net-worth customers in the region.”
The Singapore property saw its fourth-quarter adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) increase 50.1 percent year-on-year, to US$806 million.
The analyst note followed discussions at the JP Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum held in Las Vegas, Nevada, in the United States.
JP Morgan cited the casino firm saying many of its wealthy clients for its Singapore property had “high frequency of visitation”.
Las Vegas Sands thought Singapore “will continue to stick out as an attractive hub for ultra-high net worth” people to live and/or “park their wealth,” said the bank.
The institution stated the casino firm mentioned “compelling returns on its recent US$1.75-billion to US$2.0-billion capital redevelopment programme” for the Singapore resort.
That was understood to be a reference to recent room and other upgrades at Marina Bay Sands that were completed last year.
That investment is separate to an expansion of Marina Bay Sands, often referred to as ‘MBS 2.0’. Las Vegas Sands broke ground in July on the US$8-billion expansion project. Construction of the new phase will be completed by June 2030, and open in January 2031, according to corporate information.
JP Morgan noted that Las Vegas Sands “attributed higher hold” in gaming operations to, among other factors, “new wagering types resonating well with customers”.
In the Macau market, said JP Morgan citing the company’s management, “medium-term, Las Vegas Sands may need to commit more capital to improve its Macau product offering”.
The group’s Macau operating unit, Sands China Ltd, saw its adjusted property EBITDA reach US$608 million for the three months to December 31, up 6.5 percent from the prior-year period.
The institution said from its discussions, The Venetian Macao in Cotai “could be next on the docket for capital expenditure improvements, and later Parisian [Macao],” next door.
That involved “potentially shrinking its overall room count and ‘premium-ising’ some properties,” added the bank.
It further noted, regarding Macau-market competition between Macau’s six operators in terms of player reinvestment: “LVS noted promotional levels as a percentage of gross gaming revenue have pretty much peaked.”
