Singapore’s Resorts World Sentosa (RWS) is unlikely to mirror the strong VIP performance of its local rival Marina Bay Sands (MBS) when operator Genting Singapore releases its 4Q24 financial results next month, with reduced hotel room capacity and seasonality expected to maintain weakness in the segment, according to Nomura analysts.
MBS parent Las Vegas Sands released its results for the December quarter earlier this week, which showed a 10% year-on-year and 24% quarter-on-quarter increase in VIP rolling chip volume to SG$10.75 billion (US$7.96 billion) – representing 107% of the property’s average 2019 quarterly run-rate.
However, in an overnight note, Nomura’s Tushar Mohata and Alpa Aggarwal said they do not anticipate similar growth at RWS for the quarter as 4Q is seasonally weaker for the company due to outbound travel from Singapore and continued softness in VIP business.
“On non-gaming, too, we think revenues will remain flat-to-down year-on-year because of lower hotel room inventory (~1,200 rooms in 4Q24 vs ~1,540 in 4Q23),” they wrote.
“Barring any positive surprise on win rate, we therefore think that 4Q24 may still be weak for Genting Singapore, and the weaker performance may continue until RWS2.0 attractions (Minion Land, the Singapore Oceanarium, the Central Lifestyle Connector and an all-suite hotel in place of the Hard Rock Hotel) start to open progressively from 1H25 and meaningfully contribute to earnings growth in 2H25/2026.”
Despite the negative short-term view, Nomura has maintained a “BUY” rating on Genting Singapore stock, with investors likely to look beyond Q4 weakness to a 2025 recovery.
As previously reported by IAG, RWS recently broke ground on its 2.0 expansion project, which will add around 700 hotel keys to the RWS offering and form what Genting describes as a “monumental gateway to RWS and the new Greater Southern Waterfront precinct.”
The broader RWS 2.0 expansion will also see Universal Studios Singapore updated with a new immersive themed zone, Illumination’s Minion Land, while the S.E.A. Aquarium will triple in size and be rebranded as the Singapore Oceanarium. The main outdoor Forum area will also be transformed, with this, Minion Land and the Singapore Oceanarium expected to soft open in early 2025.
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