CBRE Equity Research senior analyst John DeCree has predicted that GGR at Marina Bay Sands will go above pre-COVID levels as early as next year.
With mass and slots revenue already at 95 per cent of 2019 levels with VIP lagging at 75 per cent, Mr DeCree said: “The gaming revenue recovery at Marina Bay Sands has been much better than expected … and we still see plenty of room for further recovery at MBS. The depth of the local market is apparent, and with Macau virtually shut down still, Singapore remains a key beneficiary of displaced gaming customers across regional Asian markets.
“We expect gaming revenue at MBS will ultimately exceed 2019 levels, likely in 2023, similar to trends seen at US casinos,” he added.
Wells Fargo meanwhile upgraded Las Vegas Sands to an Overweight rating due to the building momentum in Singapore. Analyst Daniel Politzer agreed that mass table/slot GGR had quickly reached more than 90 per cent of 2019 levels in Singapore despite visitation/airlift still at or below 50 per cent of 2019.
Las Vegas Sands Chairman and CEO Robert Goldstein added: “We’re pleased that we’re back in a strong position in Singapore. The fundamental growth there comes from both base and premium mass, I don’t think either one outshines the other. I think the biggest thing we’re seeing is the airlift is opening up. And that also remains to be the most challenging part of the Singapore recovery.
We are getting a lot of good business out of the region, especially from Indonesia and Malaysia, but I think there’s a lot more opportunity as the airlift returns. And I think you’ll see that in our deck, the Changi monthly visitation numbers are still relatively less than 50 per cent of what they were at pre-pandemic. So although we’re delighted with Singapore, and the numbers reflect that. We think it’s really optimistic in the months ahead.”