Marina Bay Sands (MBS), the iconic property in Singapore owned by Las Vegas Sands, has reported an impressive annualized run rate of over US$2 billion in Adjusted EBITDA for the fourth quarter of 2023. Looking ahead, Las Vegas Sands aims to reach new heights with a target of achieving US$3 billion in EBITDA annually once the construction of a fourth tower is completed.
Current Performance and Future Projections:
In the latest financial results for Q4 and FY23, MBS posted an annual EBITDA of US$1.86 billion, with a record-breaking US$544 million in the December quarter. Despite the strong performance, LVS Chairman and CEO Robert Goldstein anticipates continued profit growth in the coming years as ongoing upgrade works are finalized. The current annualized EBITDA of US$2 billion is expected to see a growth rate of 10% to 20% over the next three or four years.
Fourth Tower Expansion:
To further boost its profitability, Las Vegas Sands plans a US$3.3 billion expansion, adding a fourth tower to the Marina Bay Sands complex. Goldstein believes that once approved and completed, this expansion could propel the annual EBITDA to surpass the US$3 billion mark by 2030. The company sees the Marina Bay Sands property as a highly valuable asset and expresses a desire for more space to accommodate the growing demand.
Optimistic Outlook and Growth Potential:
Goldstein emphasizes the substantial growth potential in the Marina Bay Sands property, projecting an increase to US$2.3 billion or US$2.4 billion in EBITDA post-renovations. Despite the limitations imposed by space constraints in Singapore, he envisions significant growth, especially with the addition of the fourth tower. The CEO considers Marina Bay Sands as one of the most valuable hotel buildings globally, anticipating acceleration in its value in the coming years.
Government Collaboration and Timelines:
While the fourth tower development was initially announced in 2019, progress was delayed due to the pandemic. Las Vegas Sands is currently in close discussions with the Singaporean government, with hopes of reaching an agreement by the end of Q3. Patrick Dumont, the President and COO of the company, acknowledges the complexity of the project, emphasizing its national significance. He remains optimistic, expecting green lights and approvals in the next quarter or two.
Investment in Upgrades:
In addition to the fourth tower expansion, Las Vegas Sands has announced a US$750 million upgrade for Tower 3. This enhancement is expected to be mostly completed by Chinese New Year 2025, showcasing the company’s commitment to maintaining and improving the existing infrastructure at Marina Bay Sands.
Marina Bay Sands stands at the forefront of profitability among integrated resorts globally, with Las Vegas Sands demonstrating a bold vision for its future. The ambitious target of achieving US$3 billion in annual EBITDA post-expansion reflects the confidence in the property’s enduring appeal and its pivotal role in the region’s tourism landscape. As the company navigates government approvals and progresses with construction plans, the Marina Bay Sands expansion remains a key focus in the gaming and hospitality industry, poised to set new standards in luxury and entertainment.