Las Vegas Sands Chairman and CEO Patrick Dumont says he expects the company’s US$8 billion expansion of Singapore integrated resort Marina Bay Sands (MBS) to exceed the company’s return thresholds – aided by the continued “best in industry” scale of its EBITDA margins.
Dumont was speaking at the Bernstein 42nd Annual Strategic Decisions Conference early Thursday (Asia time), explaining that while the investment into what has been dubbed IR2 is substantial, LVS remains bullish on the additional returns it can provide given the property’s impressive track record
“We think about [MBS] as a total investment, so we don’t break it into its component parts. We think about it as having spent close to US$6 billion building Marina Bay Sands. We spent several billion dollars recently renovating it. We spent a little bit more than a billion dollars over the years in CapEx in certain areas, and now there is the expansion of US$8 billion,” Dumont said.
“But if you want to consider the $8 billion, I would say that when you look at all of that spending in aggregate and you look at the productivity of the asset in aggregate, we would exceed our return thresholds that we would expect. So, we’re very excited about it.”
Since LVS completed its recent multi-billion revamp of the resort’s three existing towers last year, both revenue and profit have reached new highs with the company reporting in 4Q25 net revenues of US$1.60 billion and Adjusted EBITDA of US$806 million. The result was described by the company at the time as “simply the greatest quarter in the history of casino hotels.”
Asked Thursday whether MBS could maintain its momentum – particularly given that EBITDA margins continue to soar well above 50% – Dumont replied, “What’s interesting about Marina Bay Sands is, if you look at it throughout its history, its margin structure has been best in the industry at that scale.
“I think that’s driven by the quality of investment and the type of patrons that are available in Singapore’s market, which is unique. It’s a very high-end market, rarefied air. These are the best patrons in the world and they’re there in scale. So, for us to be able to have an opportunity to expand and take advantage of this is very powerful.
“We have a very long-term view about Singapore. We consider this a tremendous opportunity for our company to invest in this scale, into these types of assets in this market given what the market has in terms of its productivity. We’re very excited about it and we’re optimistic about the returns.”
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