Las Vegas Sands believes it can increase EBITDA at its Marina Bay Sands (MBS) casino in Singapore from the record US$1.86bn achieved in the fourth quarter of 2023 to US$3bn following completion of a fourth tower in 2030.
Chairman and CEO Robert Goldstein went as far as to say that Marina Bay Sands was the ‘most valuable in hotel building ever built in the world.’
He said: “Seven quarters into our reopening, MBS delivered a $544m a quarter. This is the largest EBITDA for one quarter in the history of the building. The power of this building is evident based on the results despite the disruptive impact of our ongoing $1.75bn renovation. MBS is hitting on all cylinders with gaming, lodging and retail perspective.
“We look at this asset as a $2bn asset today annualized EBITDA, but we believe it can grow 10 per cent to 20 per cent over the next three to four years. And then hopefully, we can finalize our plans with the government once the government blesses another building, we believe that, that could open later this year and make us a $3bn projected EBITDA by the end of the decade in Singapore.
Mr. Goldstein added: “So we see ourselves now at $2bn, going to $2.2bn, $2.3bn, $2.4bn and eventually stepping up to $3bn. We see huge growth in this asset. It’s just the beginning. Our only disappointment in Singapore is we just don’t have more space, because it’s a very desirable market and that building probably the most valuable in hotel building ever built in the world and will just accelerate in the next three, to four, five years until hopefully, we can tell you a finality, we have a deal in Phase II.
“That building is probably the most valuable hotel building ever built in the world and will just accelerate in the next few years.”
“Slots and ETG’s at Marina bay Sands are approaching a $1bn annual run rate. Non-rolling tables are exceeding $20m of drop per day. ADRs are escalating and the retail component is delivering far beyond pre-COVID numbers. MBS validates the quality assets prevail and reinvesting in our assets will generate sustained returns. MBS has it all, our iconic building with superb decor and service levels, which attract the most desirable customers in every segment. At the completion of both phases of the renovation program, MBS will feature 770 suites, we previously had less than 200 suites. There is no denying its future. How far can MBS go? Our future expectations starts at $2bn and beyond in EBITDA per year.”
His words came as Las Vegas Sands reported its financial results for the quarter ended December 31, 2023. Net revenue for the group was $2.92bn, an increase of 161 per cent from the prior year quarter. Operating income was $710m, compared to an operating loss of $166m in the prior year quarter. Net income from continuing operations in the fourth quarter of 2023 was $469m, compared to a net loss from continuing operations of $269m in the fourth quarter of 2022.
“We were extremely pleased with our financial and operating results for the quarter, which reflect the ongoing improvement in the operating environment in both Macao and Singapore. We remain deeply enthusiastic about our opportunities for growth in both Macao and Singapore in the years ahead,” Mr Goldstein added
“In Macau, the ongoing recovery across all segments continued during the quarter. Our decades-long commitment to making investments that enhance the business and leisure tourism appeal of Macao and support its development as a world center of business and leisure tourism positions us well as the ongoing recovery in travel and tourism spend progresses.
“In Singapore, Marina Bay Sands once again delivered outstanding levels of financial and operating performance. Our new suite product and elevated service offerings position us well as airlift capacity continues to improve and the recovery in travel and tourism spending from China and the wider region continues to advance.
“We are fortunate that our financial strength supports our ongoing investment and capital expenditure programs in both Macao and Singapore, our pursuit of growth opportunities in new markets, and the return of capital to stockholders.
Full year 2023 operating income was $2.31bn, compared to an operating loss of $792min 2022.