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Thread: MBS seeking more land from govt, says Adelson

  1. #1

    Default MBS seeking more land from govt, says Adelson

    http://www.businesstimes.com.sg/arch...elson-20140321

    Published March 21, 2014

    MBS seeking more land from govt, says Adelson

    IR wants to boost room stock by 60% as it's facing full occupancy


    [SINGAPORE] Las Vegas Sands has asked the Singapore authorities for more land to increase rooms at its Marina Bay Sands (MBS) by about 60 per cent after facing almost full occupancy, said LVS chairman Sheldon Adelson yesterday.

    The world's biggest casino operator plans to add 1,500 rooms to the 2,563-room MBS, he said at a briefing in Singapore.

    The company will also add meeting rooms, ballrooms and exhibition spaces to the US$6 billion integrated resort when the government releases more land, he announced.

    "We need more rooms. We are running at a 100 per cent occupancy; on a bad day it's 98 per cent, no other hotel in the world runs like this except some in Vegas," noted Mr Adelson.

    Sands is benefiting from Singapore's decision to overturn a four-decade ban on casinos to spur economic growth.

    MBS, opened in 2010, lies in an area being developed under a government plan that includes waterfront pedestrian areas, performance spaces, a museum, restaurants and one of the world's largest observation wheels.

    MBS "has been a catalyst for enormous tourism growth", said Mr Adelson, adding that he had met government officials on Wednesday and repeated his request for more land.

    MBS has about 1.2 million square feet of meeting and convention space and two theatres for Broadway shows, concerts and gala events, according to a company filing.

    The room revenue at MBS rose 11 per cent to US$360.3 million last year, the filing showed. The occupancy rate was 98.6 per cent in 2013 with an average daily room rate of US$396. Hotels in the city filled 86.3 per cent of their rooms last year, according to data from the Singapore Tourism Board.

    Still, Sands posted fourth-quarter earnings on Jan 30 that trailed analysts' estimates as revenue in Singapore fell 8 per cent to US$659.8 million. Gains in mass gaming and non-gaming revenue were countered by "softer VIP play", the company said.

    Mr Adelson has a net worth of US$38.5 billion, making him the world's ninth-richest person, according to the Bloomberg Bllionaires Index.

    Sands is ready to invest as much as US$10 billion in Japan to build a gambling, hotels, entertainment and shopping complex that would lure tourists to Asia's biggest economy after China, he said.

    Japan should allow Sands to build an integrated resort by 2020, before the Tokyo Olympic Games, said George Tanasijevich, CEO of MBS. The Tokyo facility should have at least 200 rooms for meetings, conventions and exhibitions.

    Sands plans to focus on Asia after the operator abandoned a plan in December to build a US$30 billion mega-resort in Spain. "We want to develop a network of resorts around the Pacific Rim," added Mr Adelson. - Bloomberg

  2. #2

    Default No formal talks held on more land for MBS: Govt

    No formal talks held on more land for MBS: Govt

    SINGAPORE — Government agencies have not formally discussed expansion plans for the Marina Bay Sands integrated resort with parent company Las Vegas Sands, despite a claim last week by billionaire Sheldon Adelson, the American casino giant’s founder and Chairman.
    BY - MARCH 26
    SINGAPORE — Government agencies have not formally discussed expansion plans for the Marina Bay Sands integrated resort with parent company Las Vegas Sands, despite a claim last week by billionaire Sheldon Adelson, the American casino giant’s founder and Chairman.

    “The STB has not received a formal proposal from Marina Bay Sands regarding the acquisition of land sites,” a spokeswoman for the Singapore Tourism Board said yesterday.

    The Urban Redevelopment Authority (URA), the main land sales agent for the Government, said its officials had not met Mr Adelson recently.

    “The release of land in Marina Bay under the Government Land Sales programme will be paced according to the ongoing infrastructure work in the Marina Bay area, our overall development plans for Singapore and projection of market demand,” the URA added.

    There are vacant sites next to Marina Bay Sands, but the Government has not yet released any of the land for tender by developers or indicated when it might do so.

    Las Vegas Sands, the world’s biggest casino operator, plans to add 1,500 rooms to its 2,563-room Marina Bay Sands, where occupancy is close to 100 per cent, Mr Adelson said last Thursday in Singapore. It will also add meeting rooms, ballrooms and exhibition spaces to the US$6 billion (S$7.6 billion) casino resort and largest hotel in Singapore when the Government releases more land, he said.

    Marina Bay Sands, opened in 2010, “has been a catalyst for enormous tourism growth”, said Mr Adelson, who said he had met government officials and repeated his request for more land.

    Room revenue at Marina Bay Sands rose 11 per cent to US$360.3 million last year. Despite an average daily room rate of US$396, it enjoyed an occupancy rate of 98.6 per cent. In comparison, hotels in Singapore filled 86.3 per cent of their rooms last year, data from the STB showed.

    CHANNEL NEWSASIA WITH AGENCIES

  3. #3

    Default

    Several facts about the gaming industry in Singapore.

    * 10 years exclusive gaming license commence in 2010, which will expire in 2020

    * It take 4 years to construct the IR in Singapore.

    * RWS has got no land area to expand in Sentosa

    * MBS has run out of capacity for their business

    So if you look at the time line, Singapore government will need to make a decision on their plans for the IR industry by 2016 in order for them to be operational ready by 2020.

    Considering the market size and politically sensitivity of IR, the best option for the government will be to extend the exclusive licensing with MBS and RWS in exchange for new investment in Singapore.

    For MBS it will most definitely be in Marina Bay area, while Genting will most likely to be involve in the Theme Park project in JLD because Genting already have one foot in JLD hotel.

    LIke it or not, it will happen because tourism industry has become a core pillar of Singapore economy.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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