Casino operator Las Vegas Sands Corp expects its London the Macau gaming resort in Macau to have annual earnings before interest, taxation, depreciation and amortization (EBITDA) of at least $1.5 billion once the property renovation is completed.
According to Daniel Briggs, senior vice president of investment relations at Las Vegas Sands, parent company of Macau-based Sands China Ltd., he was speaking at the JP Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum in the U.S. recently.
“[Las Vegas Sands management] sees Londoners [Macao] hitting EBITDA of $1.5 billion to $1.7 billion once they complete their capital spending priorities, up from $750 million to $800 million now,” analysts Joseph Greff, Ryan Lambert and Samuel Nielsen wrote.
Analysts quoted Mr Briggs as saying that the casino operator’s nearly $3 billion investment in London The Macao is “focused on reaching 4,000 luxury suites for the richest customers.”
Las Vegas Sands announced earlier this year that it would pay an additional $1.2 billion for the second phase of renovation of its Londoner Macao property (pictured).
Work began in November to renovate what used to be a Sands Kotai Central complex in Macau’s Kotai district to a second phase and should be “substantially completed by Spring Festival 2025,” the company said.
Phase 2 of The Londoner Macao will include renovations of Sheraton and Conrad hotels and renovations of the Pacifica casino space. The company said it will add “new attractions, dining, retail and entertainment offerings” to the property.
The company said it expects “some disruption” to London The Macao’s operations in the “second half” of this year.
Following a $1.35 billion investment for the first phase, London’s The London Macao features the architecture of London’s Westminster Palace, including a clock tower popularly known as Big Ben. An additional $400 million was spent on developing Londoner Court, a lodging tower with around 370 suites.
The property generated an adjusted EBITDA of $516 million annually in 2023, a negative figure of $189 million the year before.
Las Vegas Sands plans to invest in a Venetian Macau property across from London’s The Macao “to grow luxury sweet products,” according to JPMorgan. It did not comment on the planned investment or timeline.
According to the agency, the casino company’s management believes the Macau market is “in short supply” and has “6,000 table games and 30,000 to 40,000 hotel rooms for China’s population of 1.5 billion people.”
In mid-2022, the Macau government announced a cap on the number of game tables and game machines available to six game grant operators in the city at once.
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