Las Vegas Sands Corp. (LVS - Free Report) has entered into an agreement with the Singapore government to expand Marina Bay Sands. The company is planning to spend approximately $3.3 billion to build a 15,000-seat arena, a luxury hotel tower and an additional MICE (Meeting, Incentive, Convention, and Exhibition) space.
We believe that the addition of non-gaming facilities in Singapore will help drive visitation. Ever since its launch in 2010, Marina Bay Sands has attracted above 330 million visitors. Also, above 700 MICE events were held at the property. Per the company, this 15,000-seat arena will not only attract entertainers from Asia but also across the globe. The hotel towers will have nearly 1,000 all-suite rooms.
Rob Goldstein, Las Vegas Sands president and chief operating officer, said that “The expansion of our Singapore IR is a key component of our company's strategic growth plan and also reflects the strong tourism and business potential in Singapore. The additional hotel rooms are extremely important to us in addressing the demand created by our leisure and business tourists and our premium gaming customers.” The company is also planning to expand even further in the future.
The latest move will help drive revenues at Marina Bay Sands, Singapore. In the fourth-quarter 2018, net revenues from Marina Bay Sands, Singapore, declined 11.6% year over year to $726 million on a 17.6% decrease in casino revenues. On the flip side, rooms revenues as well as convention, retail and other revenues rose 4.4% and 8.3%, respectively. Mall as well as food and beverage revenues also increased a respective 8.5% and 3.8%.
Las Vegas Sands has been investing heavily to boost its performance. Markedly, the company has invested over $13 billion in Macao since 2004, consistently contributing to Macao's diversification and appeal as a business and leisure tourism destination. In the next couple of years, the company is likely to spend $2 billion in Macao.
In the past six months, shares of Las Vegas Sands have rallied 12.3% compared with the industry’s collective growth of 7.1%.
Zacks Rank & Stocks to Consider
Las Vegas Sands, which shares space with Melco Resorts & Entertainment Limited (MLCO - Free Report) , has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Wynn Resorts, Limited (WYNN - Free Report) and Zynga Inc. (ZNGA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wynn Resorts and Zynga has an impressive long-term earnings growth rate of 10% and 22.5%, respectively.
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