The Las Vegas Sands Corp. (LVS) could invest almost $1 billion more to expand its Marina Bay Sands, one of two integrated resorts (IRs) in Singapore.
According to Asia Gaming Brief, brokerage Deutsche Bank estimates the total price tag will reach $4 billion, up from the original budget of $3.3 billion.
In an October filing, LVS disclosed that expansion costs will “materially exceed” the original figure due to inflation and higher costs for material and labor.
The Deutsche Bank analyst team noted, “given comparable developments and the cost escalation associated with these developments over the last several years,” the $4 billion figure is reasonable.
“That said, it is worth noting that the new facility will likely have gaming, which was not contemplated in the prior budget,” the analysts added.
Bloomberg reports that LVS will compile S$10 billion (US$7.4 billion) in bank loans to help fund the expansion.
