China – Sands looks to open Parisian in November 2015By Phil - 22 October 2014
Sands China will take another year to complete the first phase of its Parisian Macao casino with a soft opening planned for November 2015 with the resort being fully operational by March 2016.
CEO Sheldon Adelson revealed that the US$2.7bn Parisian Macao, which will boast a half-sized replica of the Eiffel Tower, will have hotel facilities with 3,000 rooms. Having mirrored his own vision of Italy with the Venetian in Las Vegas coming to Macau, Mr. Adelson will now be treading on the toes of a rival Las Vegas operator as Caesars Entertainment already operates Paris Las Vegas on the Las Vegas Strip. He revealed though that his version in Macau would, at half the size of the real Eiffel Tower, be more ‘realistic.’ It is to have free standing legs instead of legs that are entrenched in buildings.
Mr. Adelson said: “The Parisian Macao, targeted to open in late 2015, will meaningfully enhance the appeal of Macao to business and leisure travellers and provide an outstanding platform for growth in the years ahead.”
It is being built on the Cotai Strip at a time when Sands China is strongly positioned to continue to its growth in Macau.
Whilst Macau’s gaming market has struggled with four consecutive months of year-on-year revenue declines, Sands, now the region’s mass-market leader reported third-quarter revenues with a 4.3 per cent increase in net income to US$644.6m. Overall, Las Vegas Sands’ net revenue came in at US$ 380.5m representing a combined increase year on year of 1.4 per cent.
“We would not be expanding if we did not think there was a future here,” Mr. Adelson said. “As I have said in the past, all things in life are cyclical. We have experienced cyclicality in Macau in the past, and we believe that the current softness in the environment in Macau today is also cyclical, and that it is only a matter of time before the cycle reverses itself. While the operating environment in Macao, especially in the rolling segment, proved challenging during the third quarter, I am pleased that our mass and non-gaming focused strategy allowed us to report a quarter of steady revenue and cash flow and to deliver growth in operating income, net income and earnings per share. We remain focused on the consistent execution of our global growth strategy, which continues to leverage the power of our unique convention-based Integrated Resort business model.
Mr. Adelson added: “We are confident that the continued execution of this strategy will extend our position as the global leader in Integrated Resort development and operation and enable us to deliver strong growth in the future. We enjoyed record visitation to our Cotai Strip properties and welcomed over 18m visits during the quarter to our Macao property portfolio, which delivered a third quarter record $809m in adjusted property EBITDA.”
In Las Vegas, its Venetian and Palazzo resorts produced EBITDA of $90.2m for the quarter, a 3.6 per cent increase compared to the third quarter. Net revenues were up by $5m to $380.5m. Net revenues for Sands Bethlehem in Pennsylvania increased 3.6 per cent to $127.3m while Marina Bay Sands in Singapore saw revenue fall five per cent to US$ 735.5m.
Mr. Adelson also confirmed he would be visiting Japan, Vietnam and South Korea as Sands looks to expand in those countries.
“Financially, we have the wherewithal to pursue developments in all three of these jurisdictions concurrently, if the opportunity to do so arises,” he said. “The important point is that our strategy hasn’t changed. Our business will continue to be anchored around the mass market and the secular growth of Chinese tourism.”