The Las Vegas Sands Corp., U.S.-based parent company of Marina Bay Sands (MBS) in Singapore, says an expansion of the resort will cost more than the US$3.32 billion floated in 2019, when the plan was first unveiled.
According to GGRAsia, that year Marina Bay Sands Pte Ltd. agreed to the improvements just as the city-state announced that MBS and its sole rival in the market, Resorts World Sentosa (RWS) would maintain their market duopoly until 2030. RWS, a Genting property, also pledged to invest $3.32 billion on expansion work.
In a first-half report released on August 21, MBS said it expects its total project cost “will materially exceed the amounts… from April 2019 based on current market conditions due to inflation, higher material and labor costs and other factors.”
In March this year, MBS and the Singapore Tourism Board agreed to extend the groundbreaking to April 8, 2024 and the construction completion date to April 8, 2028.
“The estimated cost and timing of the total project will be updated as the company completes design and begins construction,” said LVS in a filing, adding that it had already “incurred approximately US$1.07 billion” in costs for the extension as of June 30, “inclusive of the payment made in 2019 for the lease of the parcels of land underlying the Marina Bay Sands expansion project site.”
A new tower will offer “luxury rooms and suites” as well as a “rooftop attraction, convention and meeting facilities and a state-of-the-art live entertainment arena with approximately 15,000 seats.
“We are in the process of completing the design and reviewing the budget and timing of the Marina Bay Sands expansion due to various factors,” LVS continued. The cost estimate and schedule “were not delivered” to LVS lenders by an extended deadline of March 31, GGRAsia reported.
“We do not anticipate material spend related to the Marina Bay Sands expansion project prior to the delivery of these items to lenders,” the company stated.
“This project is in addition to our previously-announced plans for the Marina Bay Sands expansion project and is expected to be completed by the end of 2023,” said the casino group.
The overhaul will also budget US$1 billion for renovation of existing hotel rooms, introducing “world-class suites in Tower 1 and Tower 2, and substantially [upgrading] the overall guest experience for premium customers,” stated the company.
