Las Vegas Sands flags $10.6b investment to develop fourth tower at Marina Bay Sands

SINGAPORE - Las Vegas Sands (LVS), the parent company of Marina Bay Sands (MBS), now estimates it will spend US$8 billion (S$10.6 billion) on the integrated resort’s (IR) expansion project, more than doubling its original planned investment amount.

Dubbed Marina Bay Sands IR2, the fourth tower will include 570 hotel rooms, premium gaming areas, a sky roof, a 15,000-seat entertainment arena, and additional premium Mice (meetings, incentives, conferences and exhibitions) space, as well as new food and beverage (F&B) and nightlife offerings.

Investment in the project, which was initially announced in April 2019 at the cost of US$3.3 billion, has since more than doubled to US$8 billion, LVS said in its third-quarter earnings presentation on Oct 23.

This includes about US$4.7 billion for design and construction, US$2 billion for land premiums, and US$1.3 billion for pre-opening and finance costs.

LVS said it is “investing in the growth of Singapore’s high-value leisure and business tourism market” with the expansion establishing a “new ultra-luxury resort destination” that will enhance Singapore’s tourism appeal.

The casino giant expects to shoulder between 25 per cent and 35 per cent of the project cost directly, with the remaining 65 per cent to 75 per cent to be covered through project financing.

“Our goal with this tower is to make it something very different. This is going to be the most important gaming and hospitality building in the world. It’s going to be the best hotel in the world, and that’s our goal: the best service, the best experience, the best F&B,” said LVS president and chief operating officer Patrick Dumont.

The update about the new development comes on the same day LVS reported a drop in revenue and earnings for MBS after a series of strong post-Covid quarterly results.

MBS’ net revenue declined 9.5 per cent to US$919 million for the third quarter ended September, while its adjusted property earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 17.3 per cent to US$406 million.

Nevertheless, revenue from its rooms remained steady at US$125 million year on year, despite a 1.6 percentage point drop in hotel occupancy to 94.7 per cent in the latest quarter.

LVS said construction of MBS’ fourth tower is scheduled to commence in June 2025 and is expected to be completed by June 2030, with an estimated official opening in January 2031.

MBS received approval from the Urban Redevelopment Authority to develop the fourth tower in January 2024. The project is designed by Moshe Safdie-led Safdie Architects, the same firm responsible for the original MBS property that opened in April 2010.

The expansion project is separate from a US$1.75 billion reinvestment in the existing property, which is the largest reinvestment since MBS opened 14 years ago. This includes the completed refurbishment of Towers 1 and 2 of the hotel, as well as new dining offerings and luxury lifestyle amenities.

THE BUSINESS TIMES