In the midst of what is arguably the most challenging business climate ever for Las Vegas Sands’ massive investment in Macau, the company’s “bullish” new president says expansion will be a priority under his regime.
Industry veteran Robert Goldstein, 59, who is taking over for the retiring Michael Leven, said, “I’m focused on continuing to execute Sheldon’s vision and the strategic objectives laid out by our board and management team”— marching orders that include “pursuing new development opportunities”.
“There is much work to do, but I couldn’t be more excited about the opportunities ahead of us.”
The Las Vegas resident has made a career of seeing new resort casinos rise from concept to completion, spending 15 years working with new projects in the Caribbean and the United States prior to joining LVS in 1995, four years before founder, chairman, CEO and controlling shareholder Sheldon Adelson—“one of the world’s greatest entrepreneurs,” in Mr Goldstein’s view—first made his mark on the industry with the elaborately themed Venetian on the Las Vegas Strip.
As president of The Venetian and Palazzo and later as head of global operations, Mr Goldstein specialized in developing much of the non-gaming elements that make up the integrated resort strategy that has been central to LVS’ success. Notably, he is credited with expanding and refining the retail offering that has proven so lucrative for the company on the Cotai Strip in Macau and in Singapore at Marina Bay Sands.
But in succeeding Mr Leven as chief operating officer he will have big shoes to fill. The latter, a veteran hotelier, now 77, has been on the board of directors since LVS’ launch as a public company and is one of Mr Adelson’s most trusted advisors. Mr Leven took the helm in 2009 after the exit of the company’s first president, William Weidner, who left in the depths of the Great Recession, a time when credit had frozen up worldwide, the company’s share price had plummeted in the space of a year from more than $100 to under $2, and its sizable debt load engendered doubts about its viability as a going concern. Mr Leven exerted a stabilizing influence, and in that capacity was instrumental in righting the ship, shepherding Marina Bay Sands and Sands Cotai Central through to completion and securing solid, stable management in Macau. He will continue as a director of the company.
Mr Goldstein steps up at a time when political and economic winds are blowing ill out of China again, the Macau market is in turmoil, a new multibillion-dollar Sands resort is set to debut next year on Cotai, Singapore is struggling to recapture its momentum, and money flows are under intense government and law enforcement scrutiny industry-wide.
And the stock (NYSE: LVS) is taking it on the chin, down as recently as this month by 40% from 2014’s March high of $87.
Mr Goldstein’s track record is strongly in his favor, though, and his long association with Mr Adelson should provide a critical level of comfort and assure him of support from the top.
“Our company is in the enviable position of having the most diverse set of assets and the strongest balance sheet in our industry, as well as being best-positioned to capitalize on future growth opportunities as they happen,” Mr Adelson said in announcing his appointment. “With Rob’s strong leadership, passion and energy, I’m fully confident we will expand our industry leadership to deliver even greater achievements in the years ahead.”
Mr Goldstein has no doubts about their prospects together. “We will continue to concentrate on getting the most out of our existing properties, pursuing new development opportunities and driving shareholder value,” he said.
He added, “Considering the depth of the team we’ve assembled, I can’t help but be even more bullish about what the future has in store for Las Vegas Sands.”
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