Las Vegas Sands management said Thursday they expect to achieve their annual EBITDA target of US$2 billion for Singapore integrated resort Marina Bay Sands (MBS) sooner rather than later, aided by an ongoing Renovation and Refurbishment Program that will see the property’s suite inventory increase from 200 to 770.
With a US$1 billion Renovation and Refurbishment Program of two MBS hotel towers nearing completion, the company revealed during its 3Q23 results announcement overnight that it would invest a further US$750 million on Tower 3, to be completed in stages through 2025.
The first phase, LVS added, has seen 1,300 hotel rooms refurbished including the expansion of its suite product from 200 to 390 while the Tower 3 investment will take that tally to 1,850 redesigned rooms including 770 suites.
LVS Chairman and CEO Robert Goldstein made reference to this Renovation and Refurbishment Program during Thursday’s earnings call when asked about a previously stated goal of US$2 billion in annualized EBITDA for its Singapore resort.
MBS achieved Adjusted EBITDA of US$491 million in Q3, a result that even management described as surprising given ongoing renovation works and the fact that tourism recovery is ongoing.
“I think what you’re seeing in Singapore is a very diverse bunch of assets that are coming together,” said Goldstein.
“I think the biggest story is the suite product, which you haven’t seen but is pretty extraordinary. When it goes from 200 to 770, it’s just a very potent combination of great food and beverage grade service.
“It enables us to get a place we’ve never thought of before [so] I think US$2 billion is our goal in the future and beyond.”
Goldstein was also asked if achieving his EBITDA target would be dependent on the full recovery of Chinese tourism. According to information from LVS, flight capacity to China recovered to 77% of pre-COVID levels in 3Q23, leaving significant room for improvement.
“We always need China, let’s be clear about that,” Goldstein said. “But this quarter, we just did 490 (EBITDA).
“We’re surprised how strong it is and because [MBS] is kind of turned up. If you’ve been there, it’s got some real challenges from a physical perspective. So we think we can get to US$2 billion without a lot more.
“Do we think it’s achievable [without more Chinese customers]? Yes, but we prefer to have all the airlift coming in and all the potential customers in. We just have huge faith in this product.”
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