Las Vegas Sands says it is looking to add another 1,000-1,200 rooms in a new tower at its Marina Bay Sands resort in Singapore, along with an entertainment arena.
“The government wants more quality entertainment,” said Adelson during the Bernstein Thirty Second Annual Strategic Decisions Conference 2016.
According to the Sands chairman, the Singapore government is “anxious to get it done” and the company is now awaiting on the price of the land in order to make a further decision.
“We could design and plan before the end of the year,” said Adelson.
He also added that the new tower will have a similar design with a rooftop pool but will be different and will not connect to the existing SkyPark pool.
On a similar note, Las Vegas Sands has also been in discussion with third-parties to sell all or part of its retail assets in Singapore, said Bernstein in a follow up note on the interview. “LVS has already received interest for a stake in its retail mall assets. Current discussions indicate a cap rate of 3-4 percent and could potentially be even lower.”
In regards to Macau, Adelson reiterated his optimism for the region’s recovery, but notes that non-gaming will not be a significant contributor to revenues for operators. “It’s going to pay the expenses and do a little better, but it won’t be a big difference. Gaming is where all the money is,” said the chairman. Most of the recovery will be seen in base mass, while the high roller segment (premium mass) remains challenged, he said.
During the investor conference, Adelson also added that the new $2.7 billion resort, The Parisian, will be the major mass market draw. “It will be a must see property,” said Adelson.
When asked about what might happen regarding Macau’s concession renewals, Adelson said he does not envision any structural changes to the market, with the exception of perhaps one more concession. He also notes the government has acknowledged that Sands has done more in non-gaming than any of the other five concessionaires.
However, the government has not yet given any specific indications of what might happen, said the chairman.