Sands China Unveils Major Londoner Grand Renovation Ahead of Golden Week

Sands China has unveiled the second phase of The Londoner Macao transformation, launching premium units at the redesigned Londoner Grand Hotel. The launch is just days before China’s Golden Week and is part of a broader rebranding for the former Sheraton Grand Macau to tap into the lucrative mass market.

The $1.2 billion overhaul has downsized inventory by 60%, from over 4,000 rooms to 1,500 suites and 905 rooms, targeting affluent travelers. The downsizing reflects Macau’s growing focus on high-value tourism, with the new complex launched in time to capitalize on Golden Week’s anticipated visitor surge.

Gradual Economic Ramp-Up Expected

Sands China CEO Grant Chum described the Londoner Grand’s full-room relaunch as a “turning point” during Las Vegas Sands’ Q1 2025 earnings call. While all 2,405 rooms are operational, Chum cautioned that EBIDTA gains will materialize gradually over the next 12 months.

Chum underscored that the new project positions the company to drive mass market growth. He also acknowledged the operational teething pains expected during recovery efforts caused by capacity constraints during the 18-month renovation period. Sand China’s inability to capitalize on high traffic periods resulted in a 5.7% year-on-year revenue decline to US$1.7 billion in 2024. Net income also suffered, plunging 30% to US$202 million. While the changes align with Macau’s shift towards non-gaming revenue streams, near-term margins may remain strained until 2026.

Luxury Shift Amid Holiday Spotlight

Sands China’s Londoner Grand revival aligns with mainland China’s Golden Week (April 29^th to May 3^rd), but analysts project tempered returns. JP Morgan noted that the hotel’s rates average 14% below the Lunar New Year levels and 2% under 2024’s May holiday pricing. This is despite occupancy rates edging 4% higher than the same period last year.

Macau’s tourism chief, Maria Helena de Senna Fernandes, forecasts up to 140,000 daily visitors during the holiday, representing a 15.7% year-on-year increase on the higher limit. However, growth appears to be driven by mass-market tourists. High-roller revenue at the Londoner’s VIP tables (shaved down from 120 pre-pandemic) has dropped 9% year-on-year to MOP 1.2 billion (US$148 million) in Q1 2025.

Post-Renovation Capital Shift

CEO Grant Chum confirmed that Sands China will continue regular upgrades across its Macau portfolio. While the Londoner may get some amenity additions, capital will focus on routine enhancements at The Venetian, Parisian, Four Seasons, and Sands Macao.

“Major redevelopment and upgrading of The Londoner is largely complete,” Chum emphasized, stating that future renovations would remove “modest keys at any one time” to minimize operational impacts.