Las Vegas Sands to Spend $8 Billion on Marina Bay Sands IR Expansion

Las Vegas Sands Corp. (LVS) has unveiled an ambitious venture to expand its iconic Singapore integrated resort (IR), dubbing the project Marina Bay Sands IR2. The massive project involves a $8 billion investment, a significant increment from the original estimate of $3.3 billion made in 2019. MBS IR2 will add a fourth hotel tower to the resort with new luxury and entertainment facilities poised to enhance Singapore's tourism appeal. LVS noted in its Q3 earnings presentation on October 23^rd that it is "investing in the growth of Singapore's high-value leisure and business tourism market."

A Focus on Luxury and Entertainment

Marina Bay Sands IR2 will add a fourth tower featuring avant-garde facilities. The resort will include 570 luxury suites, 110,000 sq ft of MICE (Meetings, Incentives, Conferences, and Exhibitions) spaces, a 15,000-seat arena, gaming areas, and rooftop pools. The tower will also feature a main casino, sky gaming experiences, a new SkyPark, and food, beverage and nightlife options.

The $8 billion investment in the project includes $4.7 billion for design and construction, $2 billion for land premiums, and $1.3 billion for pre-opening and finance costs. LVS plans to contribute 25% to 35% of the project cost; the remaining 65% to 75% will be covered through project financing. The venture is scheduled to kick off in June 2025, with commercial operations expected to begin on January 1^st, 2031.

A Major Tourism Asset

Marina Bay Sands IR2 is set to redefine the global integrated resort landscape. Patrick Dumont, LVS President and COO, stated, "Our new program creates a full-scale integrated resort development with a full suite of amenities, including gaming capacity. 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."

Robert Goldstein, LVS Chairman and CEO, also emphasized the venture's importance: "This project reflects a lot of capital being directed at a very, very strong customer segment. It's a unique asset for a unique market that is stellar. There are barriers to entry, but it's a proven market and we know what the customer is. We've been there for 14 years so we feel very, very confident that these results are going to be terrific."

Ongoing Upgrades

Las Vegas Sands continues to renovate its existing Marina Bay Sands properties even with the ongoing major project. The Nevada-based company is currently upgrading MBS Tower 3, redesigning its lobby, F&B options, and wellness amenities. As it stands, MBS IR serves as a benchmark for integrated resorts worldwide, inspiring similar successful developments in countries like Thailand and Japan.