LAS Vegas Sands (LVS) – the parent company of Singapore’s Marina Bay Sands (MBS) – is set to invest US$8 billion in the integrated resort’s (IR) expansion project dubbed “Marina Bay Sands IR2”.
The massive project includes a fourth hotel tower with a sky roof, a 15,000-seat entertainment arena, and additional premium Mice (meetings, incentives, conferences & exhibitions) space, as well as new food and beverage (F&B) and nightlife offerings.
LVS stated in its quarterly earnings presentation on Wednesday (Oct 23) that it is “investing in the growth of Singapore’s high-value leisure and business tourism market” with the expansion establishing a “new ultra-luxury resort destination” that will enhance Singapore’s tourism appeal.
“Marina Bay Sands IR2 will complement and enhance the existing resort by introducing a new luxurious and exclusive hotel experience, a 15,000-seat arena, additional Mice capacity and entertainment offerings including premium gaming areas,” it added.
Investment in the project, which was initially announced in April 2019 at a cost of US$3.3 billion, has since more than doubled to US$8 billion. This includes approximately US$4.7 billion for design and construction, US$2 billion for land premiums, and US$1.3 billion for pre-opening and finance costs.
LVS expects to contribute between 25 and 35 per cent of the project cost directly, with the remaining 65 to 75 per cent covered through project financing.
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“Our goal with this tower is to make it something very different. This is going to be the most important gaming and hospitality building in the world. It’s going to be the best hotel in the world, and that’s our goal: the best service, the best experience, the best F&B,” said LVS president and chief operating officer Patrick Dumont.
The update about the new development comes at a time when MBS is experiencing a 9.5 per cent decline in net revenue, which has fallen to US$919 million for the third quarter ended September 2024.
Revenue from its rooms remained steady at US$125 million year on year, despite a 1.6 percentage point drop in hotel occupancy to 94.7 per cent in the latest quarter.
Construction of the new tower is scheduled to commence in June 2025, and is expected to be completed by June 2030, with an estimated official opening in January 2031.
MBS received approval from the Urban Redevelopment Authority to develop the extension project in January this year. The project is designed by Moshe Safdie-led Safdie Architects, the same firm responsible for the original MBS property that opened in April 2010.
This project is separate from a US$1.75 billion reinvestment in the existing property, which is the largest reinvestment since MBS opened 14 years ago. This includes the completed refurbishment of Towers 1 and 2 of the hotel, as well as new dining offerings and luxury lifestyle amenities.
