Source : The Straits Times, Aug 20, 2009
MARINA Bay Sands said it had secured tenants for three-quarters of its retail space, including French luxury brand Chanel, which will open its largest boutique in Singapore.
The integrated resort is expected to have about 300 stores for the well-heeled shopper in more than 800,000 sq ft of retail and restaurant space.
But only half of the retail space will open with the resort early next year along with the casino, 1,000 hotel rooms and most of the convention centre.
Marina Bay Sands said it is confident of its success as a 'compelling shopping destination'.
'We have enjoyed enthusiastic responses from retail tenants from all over the world,' said Mr David Sylvester, vice-president of Asia retail at parent company Las Vegas Sands.
Chanel is the first tenant to be announced. More names will be revealed at a later stage, said the resort's spokesman.
The Chanel boutique will be the third store in Singapore and its largest.
At 7,600 sq ft, the two-level boutique will be more than double the size of its first flagship outlet opened here in 1990 at Ngee Ann City. In March, it opened a second outlet specialising in watch and jewellery, also at Ngee Ann City.
Chanel said it expects Asia to be a growing market for upscale brands. The new outlet will be designed by New York-based architect Peter Marino, who is behind Chanel's most notable boutiques.
One of them is the 10-storey Chanel building in Ginza, Tokyo, built in 2005. It features a shimmering facade made of liquid crystal glass, woven stainless steel, and more than 700,000 LED lights.
Showing posts with label Integrated Resorts (IR) / Casino News. Show all posts
Showing posts with label Integrated Resorts (IR) / Casino News. Show all posts
Thursday, August 20, 2009
Over 75% Of Shops At Marina Bay Sands Let
Source : The Business Times, August 20, 2009
Chanel - the first tenant announced - will open two-floor, 7,600-sq-ft boutique
MORE than three quarters of the shops at the Marina Bay Sands (MBS) integrated resort have been let, the resort's management said yesterday.
Large-scale retail: The Marina Bay Sands integrated resort has about 300 shops and 800,000-plus square feet of retail and restaurant space. Its tenants will include international designer brands and emerging labels
The US$4.5 billion resort, set to open next year, has about 300 shops and 800,000-plus square feet of retail and restaurant space. About 50 per cent of retail space will be up and running when the first phase of the project opens in early 2010, and 80 per cent of the retail space that will be open in this phase has already been let, MBS said yesterday.
It also said French fashion house Chanel will open a 7,600-sq-ft boutique in the Marina Bay Sands Shoppes - the first tenant announced.
'We have secured commercial terms for over 75 per cent of Marina Bay Sands Shoppes,' said David Sylvester, vice-president of retail for Asia at US-based Las Vegas Sands, which is developing the resort. 'We have enjoyed enthusiastic responses from retail tenants all over the world. Part of our attraction is our prime location - Marina Bay Sands Shoppes will bring large-scale retail to Singapore's central business district for the first time.'
Tenants will include a mix of international designer brands and emerging labels, Mr Sylvester said.
Chanel is excited to be part of the Marina Bay Sands concept, said Vincent Shaw, president of Chanel Asia-Pacific: 'It is a great opportunity to join the ultimate house of luxury with a truly innovative and creative retail environment. Singapore has a young, progressive and energetic retail scene.'
The concept boutique, which will be spread over two floors, will be designed by New York-based architect Peter Marino, the man behind the black-and-white signature design of Chanel's boutiques worldwide.
The MBS boutique will showcase Chanel's ready-to-wear women's clothing and footwear, and accessories such as bags, eyewear, costume jewellery and fragrance and beauty products.
Chanel - the first tenant announced - will open two-floor, 7,600-sq-ft boutique
MORE than three quarters of the shops at the Marina Bay Sands (MBS) integrated resort have been let, the resort's management said yesterday.
Large-scale retail: The Marina Bay Sands integrated resort has about 300 shops and 800,000-plus square feet of retail and restaurant space. Its tenants will include international designer brands and emerging labelsThe US$4.5 billion resort, set to open next year, has about 300 shops and 800,000-plus square feet of retail and restaurant space. About 50 per cent of retail space will be up and running when the first phase of the project opens in early 2010, and 80 per cent of the retail space that will be open in this phase has already been let, MBS said yesterday.
It also said French fashion house Chanel will open a 7,600-sq-ft boutique in the Marina Bay Sands Shoppes - the first tenant announced.
'We have secured commercial terms for over 75 per cent of Marina Bay Sands Shoppes,' said David Sylvester, vice-president of retail for Asia at US-based Las Vegas Sands, which is developing the resort. 'We have enjoyed enthusiastic responses from retail tenants all over the world. Part of our attraction is our prime location - Marina Bay Sands Shoppes will bring large-scale retail to Singapore's central business district for the first time.'
Tenants will include a mix of international designer brands and emerging labels, Mr Sylvester said.
Chanel is excited to be part of the Marina Bay Sands concept, said Vincent Shaw, president of Chanel Asia-Pacific: 'It is a great opportunity to join the ultimate house of luxury with a truly innovative and creative retail environment. Singapore has a young, progressive and energetic retail scene.'
The concept boutique, which will be spread over two floors, will be designed by New York-based architect Peter Marino, the man behind the black-and-white signature design of Chanel's boutiques worldwide.
The MBS boutique will showcase Chanel's ready-to-wear women's clothing and footwear, and accessories such as bags, eyewear, costume jewellery and fragrance and beauty products.
Friday, July 10, 2009
Marina IR Delay 'No Surprise'
Source : The Straits Times, July 10, 2009
TOURISM players say the signs that there would be a delay in the opening of the Marina Bay Sands integrated resort (IR) were visible: Construction at the site was proceeding slower than it should have been.
A view of the Singapore skyline from the 50th floor of the Marina Bay Sands' hotel towers. The IR's opening has been delayed, but tourism players say the signs were obvious. -- ST PHOTO: DESMOND FOO
They said the fact that work had not started on its 1.2ha rooftop garden - which has to be lifted 200m into place - with less than half a year left to the opening was a massive hurdle to overcome.
Said CIMB-GK economist Song Seng Wun: 'Anyone who has driven by could have seen it's impossible.'
Mr Song and others, however, said the delayed opening would not have much of an impact, given the sorry state of the industry right now.
This year has been a write-off as far as tourism arrivals are concerned, they said, and whatever boost a year-end opening of the IR would have given would have been minimal.
Las Vegas Sands' chairman and chief executive officer Sheldon Adelson said on Wednesday that the IR's opening would be pushed back to January or February.
The admission came after months of assurances by Marina Bay Sands' other executives that the 2,600-room casino-resort would open by the year end, as scheduled.
But while industry observers and agents contacted by The Straits Times say they saw a delay coming, they said the explanation given for it - that there was a shortage of materials and labour - was puzzling.
The Building and Construction Authority, for example, said it had not received any feedback from the industry about a shortage of raw materials.
Whatever the reasons for the delay, experts said there were several reasons why it mattered little.
Singapore Management University's adjunct lecturer for world travel and tourism, Mr Aaron Hung, said the state of the world economy meant few people were ready to travel anyway.
Others said the year-end period was a slow one for business travellers - Marina Bay Sands' target group - so the IR would not lose out either.
CTC Holidays spokesman Alicia Seah said that most travellers at the end of the year are leisure tourists who are less interested in the facilities for meetings, incentives, conventions and exhibitions that the resort would offer.
CIMB-GK's Mr Song went a little further and suggested that the delay might be a blessing in disguise.
By next year, he said, things will pick up in the industry, and back-to-back openings by the Sands resort and the other IR, Resorts World at Sentosa, would create a 'Big Bang' effect.
He added that a delay of a few months 'does not really mean much in terms of the long-term strategy of developing the meetings and conventions market or providing Singapore economic growth'.
Asked about the impact of the delay yesterday, Senior Minister of State for Trade and Industry S.Iswaran would only say that tourism has been hit by the slump like other industries, and that the spread of H1N1 flu 'sort of exacerbated that some'.
He added that the Singapore Tourism Board (STB) and other government agencies were in talks with the IR over the matter and 'we expect to have a good outcome'.
Neither he nor STB would be drawn into details of the discussions, such as whether a penalty will be imposed for the delay.
STB spokesman Muhammad Rostam Umar said: 'For Singapore, it is important that the developers maintain the integrity of the concept of an integrated resort as envisaged, to fulfil the objective of enhancing Singapore's tourism appeal.'
However, not everyone agreed that the postponement means little.
Gaming analyst Jonathan Galaviz, for instance, felt that the impact would be keenly felt. Having a mega-attraction open during the downturn, he said, would be a shot in the arm for the country, and would send an important signal that plans are going ahead despite the stormy weather.
He added: 'Every day that one of the IRs is not fully open is another day that the country is not receiving sorely needed tourism revenue and visitation.'
TOURISM players say the signs that there would be a delay in the opening of the Marina Bay Sands integrated resort (IR) were visible: Construction at the site was proceeding slower than it should have been.
A view of the Singapore skyline from the 50th floor of the Marina Bay Sands' hotel towers. The IR's opening has been delayed, but tourism players say the signs were obvious. -- ST PHOTO: DESMOND FOOThey said the fact that work had not started on its 1.2ha rooftop garden - which has to be lifted 200m into place - with less than half a year left to the opening was a massive hurdle to overcome.
Said CIMB-GK economist Song Seng Wun: 'Anyone who has driven by could have seen it's impossible.'
Mr Song and others, however, said the delayed opening would not have much of an impact, given the sorry state of the industry right now.
This year has been a write-off as far as tourism arrivals are concerned, they said, and whatever boost a year-end opening of the IR would have given would have been minimal.
Las Vegas Sands' chairman and chief executive officer Sheldon Adelson said on Wednesday that the IR's opening would be pushed back to January or February.
The admission came after months of assurances by Marina Bay Sands' other executives that the 2,600-room casino-resort would open by the year end, as scheduled.
But while industry observers and agents contacted by The Straits Times say they saw a delay coming, they said the explanation given for it - that there was a shortage of materials and labour - was puzzling.
The Building and Construction Authority, for example, said it had not received any feedback from the industry about a shortage of raw materials.
Whatever the reasons for the delay, experts said there were several reasons why it mattered little.
Singapore Management University's adjunct lecturer for world travel and tourism, Mr Aaron Hung, said the state of the world economy meant few people were ready to travel anyway.
Others said the year-end period was a slow one for business travellers - Marina Bay Sands' target group - so the IR would not lose out either.
CTC Holidays spokesman Alicia Seah said that most travellers at the end of the year are leisure tourists who are less interested in the facilities for meetings, incentives, conventions and exhibitions that the resort would offer.
CIMB-GK's Mr Song went a little further and suggested that the delay might be a blessing in disguise.
By next year, he said, things will pick up in the industry, and back-to-back openings by the Sands resort and the other IR, Resorts World at Sentosa, would create a 'Big Bang' effect.
He added that a delay of a few months 'does not really mean much in terms of the long-term strategy of developing the meetings and conventions market or providing Singapore economic growth'.
Asked about the impact of the delay yesterday, Senior Minister of State for Trade and Industry S.Iswaran would only say that tourism has been hit by the slump like other industries, and that the spread of H1N1 flu 'sort of exacerbated that some'.
He added that the Singapore Tourism Board (STB) and other government agencies were in talks with the IR over the matter and 'we expect to have a good outcome'.
Neither he nor STB would be drawn into details of the discussions, such as whether a penalty will be imposed for the delay.
STB spokesman Muhammad Rostam Umar said: 'For Singapore, it is important that the developers maintain the integrity of the concept of an integrated resort as envisaged, to fulfil the objective of enhancing Singapore's tourism appeal.'
However, not everyone agreed that the postponement means little.
Gaming analyst Jonathan Galaviz, for instance, felt that the impact would be keenly felt. Having a mega-attraction open during the downturn, he said, would be a shot in the arm for the country, and would send an important signal that plans are going ahead despite the stormy weather.
He added: 'Every day that one of the IRs is not fully open is another day that the country is not receiving sorely needed tourism revenue and visitation.'
Thursday, July 9, 2009
Marina Bay Sands Opening Delayed To 2010
Source : The Business Times, July 9, 2009
LAS VEGAS Sands (LVS) will launch its Marina Bay Sands (MBS) integrated resort later than expected, with doors opening in January or February instead of at end-2009.
Topping out ceremony: Mr Adelson, flanked by his wife and two sons, with George Tanasijevich (back row), GM and VP of Sands' Singapore Development
Early-2010 will also be when LVS is likely to re-start construction work on stalled sites in Macau, as financing is expected to be 'settled' by September, LVS chairman and CEO Sheldon Adelson said yesterday.
In town for a ceremony to mark the topping out of three 55-storey hotel towers at MBS, Mr Adelson said that depending on future market conditions, LVS could sell non-core assets at MBS, such as the retail mall, and use the cash to repay loans.
His comments on non-core assets were in response to questions on whether LVS might float MBS here.
There are no plans for an IPO of Singapore assets. But in Macau - where LVS owns several casino resorts, including the Venetian Macau - Mr Adelson said that LVS is 'actively and seriously' looking at several options to secure funding for its stalled Macau projects.
These include an IPO on the Hong Kong stock exchange of its Macau properties, which could raise US$3 billion - US$4 billion.
However, Mr Adelson said that LVS is also considering new equity partners and selling non-core assets in Macau, including retail malls and condominiums.
LVS announced late last year that it would suspend the development of Sites 5 and 6 on Macau's Cotai Strip due to the global credit crunch, and focus on completing MBS instead.
Financing for MBS is secured.
One reason for the delay in opening MBS is said to be the complex structure of the Sands SkyPark, an aerial park that will link and crown the three hotel towers. As such, MBS is likely to open in phases, Mr Adelson said. But the phases are not likely to be far apart, he added.
Building conditions have not always been favourable, he explained.
'We can't control the flow of sand to make concrete. We can't control the availability of steel. And we can't control the availability of labour due to other projects that are in the market.'
The first attractions to open will be key revenue drivers - including the casino, which is at an advanced stage of construction.
No events are expected before April 1 for the meetings, incentives, conventions and exhibition (Mice) facilities.
However, Mr Adelson, a Mice veteran, said that MBS is negotiating about 150 Mice events contracts - most of them new to Singapore.
The hotels will also be a key component of MBS, with about 2,600 rooms and suites in total. While the number of rooms is lower than the projected 3,000 when LVS won the public tender to build the IR in 2006. Mr Adelson said that MBS will be 'pushing business to other hotels'.
MBS has been in discussions with other hoteliers in the area, he revealed. Some had feared MBS would wage a price war to attract customers. Mr Adelson said that MBS wanted to assure other players it would not do this.
On the contrary, he said 'we will be pushing up room rates', because MBS will offer something unique.
LAS VEGAS Sands (LVS) will launch its Marina Bay Sands (MBS) integrated resort later than expected, with doors opening in January or February instead of at end-2009.
Topping out ceremony: Mr Adelson, flanked by his wife and two sons, with George Tanasijevich (back row), GM and VP of Sands' Singapore DevelopmentEarly-2010 will also be when LVS is likely to re-start construction work on stalled sites in Macau, as financing is expected to be 'settled' by September, LVS chairman and CEO Sheldon Adelson said yesterday.
In town for a ceremony to mark the topping out of three 55-storey hotel towers at MBS, Mr Adelson said that depending on future market conditions, LVS could sell non-core assets at MBS, such as the retail mall, and use the cash to repay loans.
His comments on non-core assets were in response to questions on whether LVS might float MBS here.
There are no plans for an IPO of Singapore assets. But in Macau - where LVS owns several casino resorts, including the Venetian Macau - Mr Adelson said that LVS is 'actively and seriously' looking at several options to secure funding for its stalled Macau projects.
These include an IPO on the Hong Kong stock exchange of its Macau properties, which could raise US$3 billion - US$4 billion.
However, Mr Adelson said that LVS is also considering new equity partners and selling non-core assets in Macau, including retail malls and condominiums.
LVS announced late last year that it would suspend the development of Sites 5 and 6 on Macau's Cotai Strip due to the global credit crunch, and focus on completing MBS instead.
Financing for MBS is secured.
One reason for the delay in opening MBS is said to be the complex structure of the Sands SkyPark, an aerial park that will link and crown the three hotel towers. As such, MBS is likely to open in phases, Mr Adelson said. But the phases are not likely to be far apart, he added.
Building conditions have not always been favourable, he explained.
'We can't control the flow of sand to make concrete. We can't control the availability of steel. And we can't control the availability of labour due to other projects that are in the market.'
The first attractions to open will be key revenue drivers - including the casino, which is at an advanced stage of construction.
No events are expected before April 1 for the meetings, incentives, conventions and exhibition (Mice) facilities.
However, Mr Adelson, a Mice veteran, said that MBS is negotiating about 150 Mice events contracts - most of them new to Singapore.
The hotels will also be a key component of MBS, with about 2,600 rooms and suites in total. While the number of rooms is lower than the projected 3,000 when LVS won the public tender to build the IR in 2006. Mr Adelson said that MBS will be 'pushing business to other hotels'.
MBS has been in discussions with other hoteliers in the area, he revealed. Some had feared MBS would wage a price war to attract customers. Mr Adelson said that MBS wanted to assure other players it would not do this.
On the contrary, he said 'we will be pushing up room rates', because MBS will offer something unique.
Marina IR Towers Topped Up
Source : The Straits Times, July 8, 2009
THE three 55-storey hotel towers of Marina Bay Sands integrated resort were topped out on Wednesday morning by parent company Las Vegas Sands chairman and CEO Sheldon Adelson.
The towers will house around 2,600 luxury hotel rooms that are simultaneously being fitted out. -- PHOTO: MARINA BAY SANDS
Some 120 regional and local media were invited to witness the topping up ceremony of the three blocks.
The towers will house around 2,600 luxury hotel rooms that are simultaneously being fitted out.
Mr Aldelson told reporters the US$5.4 billion (S$7.9 billion) IR is expected open by January or February next year.
When completely open, it will comprise a casino, hotel rooms, convention and retail space, as well as various entertainment facilities.
With the topping up of the hotel towers, Marina Bay Sands can start construction of the 56th floor and the 1ha Sands SkyPark on the 57th floor.
The SkyPark, which will stand some 200m from the ground, will have a public observation deck in the world's largest building cantilever.
THE three 55-storey hotel towers of Marina Bay Sands integrated resort were topped out on Wednesday morning by parent company Las Vegas Sands chairman and CEO Sheldon Adelson.
The towers will house around 2,600 luxury hotel rooms that are simultaneously being fitted out. -- PHOTO: MARINA BAY SANDSSome 120 regional and local media were invited to witness the topping up ceremony of the three blocks.
The towers will house around 2,600 luxury hotel rooms that are simultaneously being fitted out.
Mr Aldelson told reporters the US$5.4 billion (S$7.9 billion) IR is expected open by January or February next year.
When completely open, it will comprise a casino, hotel rooms, convention and retail space, as well as various entertainment facilities.
With the topping up of the hotel towers, Marina Bay Sands can start construction of the 56th floor and the 1ha Sands SkyPark on the 57th floor.
The SkyPark, which will stand some 200m from the ground, will have a public observation deck in the world's largest building cantilever.
Marina IR Opening Delayed
Source : The Straits Times, July 8, 2009
THOSE hoping to visit the Marina Bay integrated resort at the end of the year will be disappointed. The casino-resort will only be ready in January or February next year.
On Wednesday, the IR celebrated a major construction milestone - the completion of three 55-storey hotel towers. -- ST PHOTO: DESMOND FOO
The announcement on the delayed opening came from none other than Mr Sheldon Adelson, chief executive officer and chairman of parent company Las Vegas Sands. He had announced that the entire project will be completed and open by 2009 on the day the company won the bid in 2007.
Three years on, at the topping out ceremony for its three hotel blocks on Wednesday morning, Mr Adelson told the media, government officials and guests that Marina Bay Sands will have its soft opening next January or February.
Mr Adelson (first, from left) told the media, government officials and guests that Marina Bay Sands will have its soft opening next January or February. -- ST PHOTO: DESMOND FOO
His reason: 'We can't control the flow of sand to make concrete, the availability of steel or the availability of labour.'
Marina Bay Sand's delayed opening will put it in direct competition with the other IR project on Sentosa, Resorts World on Sentosa, which is also targeting to open in the first quarter of next year. Both are gunning now to be ready before Chinese New Year, which falls in the mid-February, to welcome the festive crowds.
Still, Las Vegas Sands chief operation officer and president Michael Leven said he is not worried about going head to head with his competition as the Marina IR appeals to very different segments of the market.
The group remains confident that the Singapore project will be successful when it opens. -- ST PHOTO: DESMOND FOO
Mr Adelson promised that 50 per cent of the resort will be ready for the soft opening, with the rest to follow two to three months later. The group remains confident that the Singapore project will be successful when it opens.
On Wednesday, the IR celebrated a major construction milestone - the completion of three 55-storey hotel towers. Work will start on the next challenge, which is to hoist the sky park onto the hotel towers, some 200 metres above the ground.
Wednesday's ceremony was attended by government officials from various agencies, ranging from Singapore Tourism Board, the Singapore Workforce Development Agency, the Casino Regulatory Authority, and some 120 regional and local media.
Sheldon Adelson said Marina Bay Sands will open early next year for its initial phase. -- PHOTO: AP
The Singapore integrated resort was one of the few projects Las Vegas Sands continued to work on after the company was hit by a massive cash crunch last year. It was forced to suspend work on a Macau project late last year and lay off 11,000 workers.
However, Mr Adelson said on Wednesday he expects work to commence on the stalled Macau project by end of the year. He said the company is looking at re-financing the project, and considering five options, including an initial public offering (IPO) on the Hong Kong market for the Macau assets to raise funds. Mr Adelson said the company expects to finalise plans for Macau by September.
THOSE hoping to visit the Marina Bay integrated resort at the end of the year will be disappointed. The casino-resort will only be ready in January or February next year.
On Wednesday, the IR celebrated a major construction milestone - the completion of three 55-storey hotel towers. -- ST PHOTO: DESMOND FOOThe announcement on the delayed opening came from none other than Mr Sheldon Adelson, chief executive officer and chairman of parent company Las Vegas Sands. He had announced that the entire project will be completed and open by 2009 on the day the company won the bid in 2007.
Three years on, at the topping out ceremony for its three hotel blocks on Wednesday morning, Mr Adelson told the media, government officials and guests that Marina Bay Sands will have its soft opening next January or February.
Mr Adelson (first, from left) told the media, government officials and guests that Marina Bay Sands will have its soft opening next January or February. -- ST PHOTO: DESMOND FOOHis reason: 'We can't control the flow of sand to make concrete, the availability of steel or the availability of labour.'
Marina Bay Sand's delayed opening will put it in direct competition with the other IR project on Sentosa, Resorts World on Sentosa, which is also targeting to open in the first quarter of next year. Both are gunning now to be ready before Chinese New Year, which falls in the mid-February, to welcome the festive crowds.
Still, Las Vegas Sands chief operation officer and president Michael Leven said he is not worried about going head to head with his competition as the Marina IR appeals to very different segments of the market.
The group remains confident that the Singapore project will be successful when it opens. -- ST PHOTO: DESMOND FOOMr Adelson promised that 50 per cent of the resort will be ready for the soft opening, with the rest to follow two to three months later. The group remains confident that the Singapore project will be successful when it opens.
On Wednesday, the IR celebrated a major construction milestone - the completion of three 55-storey hotel towers. Work will start on the next challenge, which is to hoist the sky park onto the hotel towers, some 200 metres above the ground.
Wednesday's ceremony was attended by government officials from various agencies, ranging from Singapore Tourism Board, the Singapore Workforce Development Agency, the Casino Regulatory Authority, and some 120 regional and local media.
Sheldon Adelson said Marina Bay Sands will open early next year for its initial phase. -- PHOTO: APThe Singapore integrated resort was one of the few projects Las Vegas Sands continued to work on after the company was hit by a massive cash crunch last year. It was forced to suspend work on a Macau project late last year and lay off 11,000 workers.
However, Mr Adelson said on Wednesday he expects work to commence on the stalled Macau project by end of the year. He said the company is looking at re-financing the project, and considering five options, including an initial public offering (IPO) on the Hong Kong market for the Macau assets to raise funds. Mr Adelson said the company expects to finalise plans for Macau by September.
Friday, June 26, 2009
60% Of IR Will Be Ready
Source : The Straits Times, June 26, 2009
Casino and theme park to open in first quarter; fewer visitors expected due to tough economy
THE Sentosa integrated resort (IR) is all set to throw open its doors in the first quarter of next year - but visitors will not get to see the finished product.
Construction of the 49ha integrated resort on Sentosa is ongoing. When it opens early next year, the casino, the university Studios theme park, the theatre, four hotels as well as the retail and dining area are expected to be ready, but not other facilities such as the oceanarium. -- ST PHOTOS: JOYCE FANG
When the resort opens, just 60 per cent of it will be ready: four hotels, the casino, the Universal Studios theme park, the theatre and the retail and dining area.
Construction of the other attractions at the 49ha resort - including the world's largest oceanarium, a marine museum and two more hotels - will begin next year and is slated for completion by 2012.
An ariel view of the 49ha Resorts World at Sentosa. The resort, which opens next year, is now expected to attract 12 million visitors in the first year, down from the 15 million forecast previously.
Giving an update on the progress of the IR yesterday, Resorts World at Sentosa (RWS) executive vice-president of projects Michael Chin said some 80 per cent of construction for the first phase of the resort has been completed.
What remain to be done are exterior works and outfitting the rides for the theme park.
This should be completed by August.
Work has begun on the world's tallest duelling coaster ride, the 42.5m-high Battlestar Galactica Duelling Coaster. The red track offers a tamer ride while the blue track is for the more adventurous.
After that, the resort will be testing the rides and other amenities, and getting staff up to speed on operations.
Asked about prices for the rides, the resort's head of communications Krist Boo declined to give details. But she said that charges would be kept 'affordable' and that they would be competitive when compared with other theme parks.
The Waterworld Stunt Show amphitheatre is set to be the biggest of its kind in the world. It will be able to seat up to 3,500 spectators. The special-effects show, a big hit at the Orlando and Osaka theme parks, retells the story of the movie Waterworld and features men on jet skies, men set on fire and even a small sea plane landing in the arena.
She added that prices would be comparable and likely cheaper, dollar-for-dollar, than those at Universal Studios' other parks in Orlando and Osaka, where day passes go for US$70 (S$100) and 6,000 yen (S$90), respectively.
Ms Boo acknowledged that there are some clouds on the horizon for the IR.
Because of the tough economic times, the resort would have to slash its visitor forecast for the first year from 15 million to 12 million, she said.
Read the full story in Friday's edition of The Straits Times.
Casino and theme park to open in first quarter; fewer visitors expected due to tough economy
THE Sentosa integrated resort (IR) is all set to throw open its doors in the first quarter of next year - but visitors will not get to see the finished product.
Construction of the 49ha integrated resort on Sentosa is ongoing. When it opens early next year, the casino, the university Studios theme park, the theatre, four hotels as well as the retail and dining area are expected to be ready, but not other facilities such as the oceanarium. -- ST PHOTOS: JOYCE FANGWhen the resort opens, just 60 per cent of it will be ready: four hotels, the casino, the Universal Studios theme park, the theatre and the retail and dining area.
Construction of the other attractions at the 49ha resort - including the world's largest oceanarium, a marine museum and two more hotels - will begin next year and is slated for completion by 2012.
An ariel view of the 49ha Resorts World at Sentosa. The resort, which opens next year, is now expected to attract 12 million visitors in the first year, down from the 15 million forecast previously. Giving an update on the progress of the IR yesterday, Resorts World at Sentosa (RWS) executive vice-president of projects Michael Chin said some 80 per cent of construction for the first phase of the resort has been completed.
What remain to be done are exterior works and outfitting the rides for the theme park.
This should be completed by August.
Work has begun on the world's tallest duelling coaster ride, the 42.5m-high Battlestar Galactica Duelling Coaster. The red track offers a tamer ride while the blue track is for the more adventurous.After that, the resort will be testing the rides and other amenities, and getting staff up to speed on operations.
Asked about prices for the rides, the resort's head of communications Krist Boo declined to give details. But she said that charges would be kept 'affordable' and that they would be competitive when compared with other theme parks.
The Waterworld Stunt Show amphitheatre is set to be the biggest of its kind in the world. It will be able to seat up to 3,500 spectators. The special-effects show, a big hit at the Orlando and Osaka theme parks, retells the story of the movie Waterworld and features men on jet skies, men set on fire and even a small sea plane landing in the arena.She added that prices would be comparable and likely cheaper, dollar-for-dollar, than those at Universal Studios' other parks in Orlando and Osaka, where day passes go for US$70 (S$100) and 6,000 yen (S$90), respectively.
Ms Boo acknowledged that there are some clouds on the horizon for the IR.
Because of the tough economic times, the resort would have to slash its visitor forecast for the first year from 15 million to 12 million, she said.
Read the full story in Friday's edition of The Straits Times.
Gaming Important Part Of IR Revenues
Source : The Business Times, June 25, 2009
It will make up big chunk of Sentosa's revenue, Marina Sands' Ebitda: CLSA
The casinos may be a small component of Singapore's integrated resorts (IRs) but both operators will be counting on gaming revenue for significant support.
A report by CLSA reveals that for Marina Bay Sands (MBS), gaming Ebitda for 2011-2012 is estimated at US$700-800 million - about 75 per cent of total Ebitda.
Money spinner: CLSA says Marina Bay Sands is still likely to generate the highest Ebitda of any LVS casino globally, contributing 40 per cent of LVS's group Ebitda
For Resorts World at Sentosa (RWS), gaming revenue is expected to contribute about 70 per cent of overall revenue. While no value figure was given, CLSA said that up to 40 per cent of this will come from locals.
Andrew Hartley, Singapore country head at CLSA, said: 'People assume the local market will be very quiet, which I think is wrong. Just look at the huge daily turnover in locally listed small-caps to see there are a lot of bored retirees out there just waiting for a chance to go and punt their pensions. Or go to Tanah Merah to see the families lined up to board the boats for a day of gaming on the high seas.'
How effective the $100 daily entry fee will be at deterring locals is unknown. However, CLSA believes - but cannot confirm - that the $2,000 annual entrance fee may allow unlimited access to both casinos.
'We believe the strength of the local market will surprise,' Mr Hartley said.
CLSA noted that in 2008, Las Vegas Sands (LVS), which owns MBS, provided guidance for MBS 2012 Ebitda (earnings before interest, tax, depreciation and amortisation) of US$1.2 billion. 'Understandably, the company is no longer maintaining that guidance, as the world is in a different place than where we were previously,' CLSA said.
However, MBS is still likely to generate the highest Ebitda of any LVS casino globally, with MBS contributing 40 per cent of LVS's group Ebitda.
For LVS, in particular, profit targets will need to be met. CLSA said: 'We understand that the debt covenants kick in after the first full four quarters. When opened, (LVS's) credit facility will not be completely drawn down with payments made in 2010 and MBS will be still paying out for capex until Q2 2011 - around US$500 million in 2011. By that point, management should be generating at least S$800 million in Ebitda or there may be some debt covenants issues.'
The report said that LVS management expects gaming revenue to be biased towards VIPs rather than the mass market, with around a 60-40 split.
RWS, which is owned by Genting Singapore, will also target VIP and mass market players. About 30 per cent of the gaming tables are expected to be reserved for KJ (key junket) VIP players. To this end, RWS has recruited high-roller marketing veteran Mabel Lee, formerly with casino operator Wynn, to drum up business.
There is likely be a core of 20 KJ operators used by RWS, with a strong focus to solicit patrons from Indonesia, China and India, CLSA said.
Junket operators are important to the gaming industry. In Macau, one of the primary roles of junkets is facilitation, as there are limits on the amount of renminbi that can be brought into Macau - 20,000 renminbi (S$4,300) and US$5,000 per visit, which is less than the average bet in a VIP room.
To qualify as a VIP player, players need to register and have a minimum buy-in of S$100,000.
RWS will also have Universal Studios Singapore as a revenue generator. CLSA said that the overall building cost of about S$1.5 billion for USS is considerably cheaper than that of the estimated US$2 billion Universal Studios in Japan. This is largely due to cheaper construction materials, it said. As such, the estimated entry price of S$80 per adult will be cheaper than that at Universal Studios Japan, Orlando and Hollywood.
CLSA also said that RWS 'is taking the meetings, incentives, conventions and exhibitions (Mice) business more seriously than we expected'. 'We understand management have booked 38 events with more than 500 people.'
Over at MBS, CLSA said that the first Mice event has been booked for April 1, 2010.
CLSA expects both IRs to open in early 2010.
It will make up big chunk of Sentosa's revenue, Marina Sands' Ebitda: CLSA
The casinos may be a small component of Singapore's integrated resorts (IRs) but both operators will be counting on gaming revenue for significant support.
A report by CLSA reveals that for Marina Bay Sands (MBS), gaming Ebitda for 2011-2012 is estimated at US$700-800 million - about 75 per cent of total Ebitda.
Money spinner: CLSA says Marina Bay Sands is still likely to generate the highest Ebitda of any LVS casino globally, contributing 40 per cent of LVS's group EbitdaFor Resorts World at Sentosa (RWS), gaming revenue is expected to contribute about 70 per cent of overall revenue. While no value figure was given, CLSA said that up to 40 per cent of this will come from locals.
Andrew Hartley, Singapore country head at CLSA, said: 'People assume the local market will be very quiet, which I think is wrong. Just look at the huge daily turnover in locally listed small-caps to see there are a lot of bored retirees out there just waiting for a chance to go and punt their pensions. Or go to Tanah Merah to see the families lined up to board the boats for a day of gaming on the high seas.'
How effective the $100 daily entry fee will be at deterring locals is unknown. However, CLSA believes - but cannot confirm - that the $2,000 annual entrance fee may allow unlimited access to both casinos.
'We believe the strength of the local market will surprise,' Mr Hartley said.
CLSA noted that in 2008, Las Vegas Sands (LVS), which owns MBS, provided guidance for MBS 2012 Ebitda (earnings before interest, tax, depreciation and amortisation) of US$1.2 billion. 'Understandably, the company is no longer maintaining that guidance, as the world is in a different place than where we were previously,' CLSA said.
However, MBS is still likely to generate the highest Ebitda of any LVS casino globally, with MBS contributing 40 per cent of LVS's group Ebitda.
For LVS, in particular, profit targets will need to be met. CLSA said: 'We understand that the debt covenants kick in after the first full four quarters. When opened, (LVS's) credit facility will not be completely drawn down with payments made in 2010 and MBS will be still paying out for capex until Q2 2011 - around US$500 million in 2011. By that point, management should be generating at least S$800 million in Ebitda or there may be some debt covenants issues.'
The report said that LVS management expects gaming revenue to be biased towards VIPs rather than the mass market, with around a 60-40 split.
RWS, which is owned by Genting Singapore, will also target VIP and mass market players. About 30 per cent of the gaming tables are expected to be reserved for KJ (key junket) VIP players. To this end, RWS has recruited high-roller marketing veteran Mabel Lee, formerly with casino operator Wynn, to drum up business.
There is likely be a core of 20 KJ operators used by RWS, with a strong focus to solicit patrons from Indonesia, China and India, CLSA said.
Junket operators are important to the gaming industry. In Macau, one of the primary roles of junkets is facilitation, as there are limits on the amount of renminbi that can be brought into Macau - 20,000 renminbi (S$4,300) and US$5,000 per visit, which is less than the average bet in a VIP room.
To qualify as a VIP player, players need to register and have a minimum buy-in of S$100,000.
RWS will also have Universal Studios Singapore as a revenue generator. CLSA said that the overall building cost of about S$1.5 billion for USS is considerably cheaper than that of the estimated US$2 billion Universal Studios in Japan. This is largely due to cheaper construction materials, it said. As such, the estimated entry price of S$80 per adult will be cheaper than that at Universal Studios Japan, Orlando and Hollywood.
CLSA also said that RWS 'is taking the meetings, incentives, conventions and exhibitions (Mice) business more seriously than we expected'. 'We understand management have booked 38 events with more than 500 people.'
Over at MBS, CLSA said that the first Mice event has been booked for April 1, 2010.
CLSA expects both IRs to open in early 2010.
Resorts World On Track
Source : The Straits Times, June 25, 2009
OVER 80 per cent of the construction work at the Sentosa casino-resort has been completed, with only the last 20 per cent to go before its opening in first quarter of next year.
Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year. --PHOTO: RESORTS WORLD AT SENTOSA
Resorts World at Sentosa gave a construction update on Thursday morning with its executive vice-president of projects Michael Chin giving the media a tour of the site.
'Everything is on track,' Mr Chin said.
Four hotels, the Universal Studios theme park, the half-kilometre stretch housing its retail and dining establishments and theatre for shows and casino will be ready for its opening next year.
This constitutes only 60 per cent of the 49-ha development. Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year, said Mr Chin.
It will take up to two years before the final segment will be completed.
For now, the team is concentrating on rushing to complete the first phase.
Most of the construction work for Singapore's first Universal Studios is done, with only the fitting out and setting up of the rides to be done. These works are expected to be completed by August after which testings and commissioning will begin.
Because the casino-resort is opening during such economic downturn, Ms Krist Boo, its head of communications, said it has revised downwards the number of visitors expected from 15 million for its first year of operations to 12 to 13 million.
Still she said: 'We remain confident that we will draw the numbers.'
OVER 80 per cent of the construction work at the Sentosa casino-resort has been completed, with only the last 20 per cent to go before its opening in first quarter of next year.
Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year. --PHOTO: RESORTS WORLD AT SENTOSAResorts World at Sentosa gave a construction update on Thursday morning with its executive vice-president of projects Michael Chin giving the media a tour of the site.
'Everything is on track,' Mr Chin said.
Four hotels, the Universal Studios theme park, the half-kilometre stretch housing its retail and dining establishments and theatre for shows and casino will be ready for its opening next year.
This constitutes only 60 per cent of the 49-ha development. Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year, said Mr Chin.
It will take up to two years before the final segment will be completed.
For now, the team is concentrating on rushing to complete the first phase.
Most of the construction work for Singapore's first Universal Studios is done, with only the fitting out and setting up of the rides to be done. These works are expected to be completed by August after which testings and commissioning will begin.
Because the casino-resort is opening during such economic downturn, Ms Krist Boo, its head of communications, said it has revised downwards the number of visitors expected from 15 million for its first year of operations to 12 to 13 million.
Still she said: 'We remain confident that we will draw the numbers.'
Wednesday, June 10, 2009
Marina IR's Progress On Track
Source : The Straits Times, June 10, 2009
CONSTRUCTION of the hotel towers at the Marina Bay Sands integrated resort (IR) is on target for completion by next month.
The three hotel towers have been built past level 50 - just five floors away from the 55-storey peak for hotel rooms, Marina Bay Sands announced in a statement yesterday.
The developer said it will hold an official topping-out ceremony early next month, presided over by Las Vegas Sands Corp chairman Sheldon Adelson.
The towers will contain around 2,600 luxury hotel rooms that are simultaneously being fitted out.
The US$5.4 billion (S$7.9 billion) IR will open by the end of the year, though likely not fully.
When completely open, it will comprise a casino, hotel rooms, convention and retail space, as well as various entertainment facilities.
Once the hotel towers reach 55 floors, Marina Bay Sands can start construction of the 56th floor and the 1ha Sands SkyPark on the 57th floor.
The SkyPark, which will stand some 200m from the ground, will have a public observation deck in the world's largest building cantilever.
Mr George Tanasijevich, general manager and vice-president of Singapore development at Marina Bay Sands, said the topping out will be one of many significant achievements over the next few months.
'We are putting the roof on the Expo and Convention Centre and are lining up luxury brands and cutting-edge designers for our retail stores.'
Last year, there were concerns that the project would not progress smoothly given the credit crunch. But Las Vegas Sands has assured investors that the Singapore IR is its top priority.
CONSTRUCTION of the hotel towers at the Marina Bay Sands integrated resort (IR) is on target for completion by next month.
The three hotel towers have been built past level 50 - just five floors away from the 55-storey peak for hotel rooms, Marina Bay Sands announced in a statement yesterday.
The developer said it will hold an official topping-out ceremony early next month, presided over by Las Vegas Sands Corp chairman Sheldon Adelson.
The towers will contain around 2,600 luxury hotel rooms that are simultaneously being fitted out.
The US$5.4 billion (S$7.9 billion) IR will open by the end of the year, though likely not fully.
When completely open, it will comprise a casino, hotel rooms, convention and retail space, as well as various entertainment facilities.
Once the hotel towers reach 55 floors, Marina Bay Sands can start construction of the 56th floor and the 1ha Sands SkyPark on the 57th floor.
The SkyPark, which will stand some 200m from the ground, will have a public observation deck in the world's largest building cantilever.
Mr George Tanasijevich, general manager and vice-president of Singapore development at Marina Bay Sands, said the topping out will be one of many significant achievements over the next few months.
'We are putting the roof on the Expo and Convention Centre and are lining up luxury brands and cutting-edge designers for our retail stores.'
Last year, there were concerns that the project would not progress smoothly given the credit crunch. But Las Vegas Sands has assured investors that the Singapore IR is its top priority.
Monday, June 1, 2009
Sentosa IR Cutting It A Little Too Close?
Source : The Straits Times, May 30, 2009
Its recruitment tour is cut short and it may face licence issues even as opening date nears
WITH just months to go before it is scheduled to open its doors, Resorts World at Sentosa may be finding itself in a bit of a pickle.
First, its much-publicised world tour to recruit 200 performers for its Universal Studios theme park had to be cut short because of fears over the Influenza A (H1N1) virus.
Second, its holding company, Genting Singapore, has introduced new shareholders into the fold, which may well complicate the process of getting a casino licence for the integrated resort.
When contacted, a spokesman for the resort said it would open its four hotels and Universal Studios as planned by the end of March next year.
Its audition team toured Singapore, Kuala Lumpur, Hong Kong and Manila and had six more cities to go before it returned on May 17. It had aimed to get all performers here in October for rehearsals. Its spokesman said that the team was recalled because of travel health alerts issued in the light of the contagious H1N1 virus. Another factor was 'the large crowds that will gather at the auditions', raising the chances of infection.
A bigger step is obtaining a licence from the Casino Regulatory Authority to operate the casino. It can apply for the licence only when 50 per cent of the resort is completed and 50 per cent of the funds spent.
The Straits Times understands it has yet to apply for a licence. The casino-resort declined to say when it would do so.
Its spokesman said: 'We will apply for the licence only when the criteria are fulfilled.'
The authority can be expected to do what is known as 'probity checks' to ascertain the company's owners, background, accounts and business links to other operations before awarding the licence. However, it has given no indication of how long this will take.
On Wednesday, Genting's Lim family sold its entire 9 per cent stake in Genting Singapore for $615 million. But even after the sale, they will remain in control of Genting Singapore through its Kuala Lumpur-listed parent company, Genting.
The concern is not only over who the new shareholders are but also whether Genting will have links to other individuals and groups which might be beyond the pale.
One theory is that the family pulled out of Genting Singapore so that it could invest in MGM Mirage's Macau casino.
Given that MGM Mirage is connected to the family of gaming magnate Stanley Ho, who is alleged to have links with organised crime, the Singapore Government might not look too kindly at a party with interests in both the Singapore and Macau gaming houses.
Gaming analyst Jonathan Galaviz said the Singapore Government has 'a very significant responsibility to ensure that the owners and executives of the integrated resorts have absolutely no unfavourable linkages'.
It is no surprise that a casino company would have an interest in Macau, he said, as it is 'still a very lucrative strategic play for the next 10 to 20 years'.
Genting is the holding company for the Genting Group, which runs the Genting Highlands Resort, Sentosa's integrated resort and palm oil producer Asiatic Development.
The last time Genting's sister company, Star Cruises - then a partner in the IR - offered to sell Mr Ho a stake in 2007, the company was questioned by the Singapore Government. The possibility of a casino licence being denied was also thrown up then.
Its recruitment tour is cut short and it may face licence issues even as opening date nears
WITH just months to go before it is scheduled to open its doors, Resorts World at Sentosa may be finding itself in a bit of a pickle.
First, its much-publicised world tour to recruit 200 performers for its Universal Studios theme park had to be cut short because of fears over the Influenza A (H1N1) virus.Second, its holding company, Genting Singapore, has introduced new shareholders into the fold, which may well complicate the process of getting a casino licence for the integrated resort.
When contacted, a spokesman for the resort said it would open its four hotels and Universal Studios as planned by the end of March next year.
Its audition team toured Singapore, Kuala Lumpur, Hong Kong and Manila and had six more cities to go before it returned on May 17. It had aimed to get all performers here in October for rehearsals. Its spokesman said that the team was recalled because of travel health alerts issued in the light of the contagious H1N1 virus. Another factor was 'the large crowds that will gather at the auditions', raising the chances of infection.
A bigger step is obtaining a licence from the Casino Regulatory Authority to operate the casino. It can apply for the licence only when 50 per cent of the resort is completed and 50 per cent of the funds spent.
The Straits Times understands it has yet to apply for a licence. The casino-resort declined to say when it would do so.
Its spokesman said: 'We will apply for the licence only when the criteria are fulfilled.'
The authority can be expected to do what is known as 'probity checks' to ascertain the company's owners, background, accounts and business links to other operations before awarding the licence. However, it has given no indication of how long this will take.
On Wednesday, Genting's Lim family sold its entire 9 per cent stake in Genting Singapore for $615 million. But even after the sale, they will remain in control of Genting Singapore through its Kuala Lumpur-listed parent company, Genting.
The concern is not only over who the new shareholders are but also whether Genting will have links to other individuals and groups which might be beyond the pale.
One theory is that the family pulled out of Genting Singapore so that it could invest in MGM Mirage's Macau casino.
Given that MGM Mirage is connected to the family of gaming magnate Stanley Ho, who is alleged to have links with organised crime, the Singapore Government might not look too kindly at a party with interests in both the Singapore and Macau gaming houses.
Gaming analyst Jonathan Galaviz said the Singapore Government has 'a very significant responsibility to ensure that the owners and executives of the integrated resorts have absolutely no unfavourable linkages'.
It is no surprise that a casino company would have an interest in Macau, he said, as it is 'still a very lucrative strategic play for the next 10 to 20 years'.
Genting is the holding company for the Genting Group, which runs the Genting Highlands Resort, Sentosa's integrated resort and palm oil producer Asiatic Development.
The last time Genting's sister company, Star Cruises - then a partner in the IR - offered to sell Mr Ho a stake in 2007, the company was questioned by the Singapore Government. The possibility of a casino licence being denied was also thrown up then.
Friday, May 29, 2009
Genting Again Rocks The Boat At Sentosa
Source : The Business Times, May 28, 2009
Move to sell 9% stake means more probity checks prior to licence award
With only months to go before the casino at Resorts World at Sentosa opens, Genting Singapore seems prepared to gamble with its casino licence again by making the regulatory probity process more complicated.
Pansy Ho: US gaming officials have recommended that MGM Mirage cut ties with its partner Ms Ho. Genting Group is said to have bought secured notes from MGM
In a statement released yesterday, Genting Singapore said that existing shareholders of the company had sold about 850 million shares via a private placing agreement representing a significant stake of about 9 per cent worth over $600 million.
The sale sent the share price plummeting almost 18 per cent to 71 cents, down 15.5 cents from the previous day. Reuters also quoted a term sheet it had seen revealing that the shares were sold for between 72-76 cents per share.
Apart from introducing new shareholders to the fold, there has also been speculation that the Lim family, headed by Lim Kok Thay, may be looking to raise capital for a possible acquisition of MGM Grand Macau. But any new significant shareholders in the company here will be scrutinised by regulators.
In response to an SGX query, Genting Singapore said: 'The respective substantial shareholders will in due course be releasing the relevant Notice of Substantial Shareholder's Change in Interests/Cessa- tion of Interests (as the case may be).'
The sale of shares was done through Golden Hope Ltd and Lakewood Sdn Bhd, vehicles that are understood to be controlled by the Lim family which owns Malaysian gaming firm Genting Bhd, the parent of Genting Singapore.
All significant shareholders of Genting Singapore will be expected to undergo strict probity checks before the gaming licence is awarded to the casino operator here by the Casino Regulatory Authority (CRA). It is understood that the gaming licence has not been awarded yet.
Speculation on the Macau deal was fuelled when it was revealed on Monday that Genting Group had acquired US$100 million in secured notes from MGM Mirage.
The talk of a divestment of MGM Grand Macau was itself sparked when the New Jersey Division of Gaming Enforcement recommended last week that MGM Mirage sever ties with Pansy Ho, its partner for MGM Grand Macau, adding that the daughter of Chinese gaming magnate Stanley Ho is an unsuitable partner.
Bloomberg had quoted Ang Kok Heng, chief investment officer at Phillip Capital Management in Kuala Lumpur, as saying that the Lim family may be raising funds to finance a possible investment in MGM Mirage's Macau casino. But he also added: 'It's not easy for Genting or Resorts World Bhd to take over MGM Mirage's venture in Macau because of their investment in Singapore. There's a likelihood the Singapore government may not agree, so the family has to come in on their own.'
This is not the first time Genting Singapore has raised eyebrows in Singapore by associating itself - perceived or otherwise - with Stanley Ho.
In 2007, after winning the tender to build one of two casino resorts in Singapore, Genting Singapore said it was looking to sell a stake in Star Cruises - which was then its partner in the Sentosa resort - to Stanley Ho. Genting Singapore later had to backtrack on this and subsequently acquired Star Cruises' entire stake in the resort in an apparent bid to pacify the Singapore government.
Move to sell 9% stake means more probity checks prior to licence award
With only months to go before the casino at Resorts World at Sentosa opens, Genting Singapore seems prepared to gamble with its casino licence again by making the regulatory probity process more complicated.
Pansy Ho: US gaming officials have recommended that MGM Mirage cut ties with its partner Ms Ho. Genting Group is said to have bought secured notes from MGMIn a statement released yesterday, Genting Singapore said that existing shareholders of the company had sold about 850 million shares via a private placing agreement representing a significant stake of about 9 per cent worth over $600 million.
The sale sent the share price plummeting almost 18 per cent to 71 cents, down 15.5 cents from the previous day. Reuters also quoted a term sheet it had seen revealing that the shares were sold for between 72-76 cents per share.
Apart from introducing new shareholders to the fold, there has also been speculation that the Lim family, headed by Lim Kok Thay, may be looking to raise capital for a possible acquisition of MGM Grand Macau. But any new significant shareholders in the company here will be scrutinised by regulators.
In response to an SGX query, Genting Singapore said: 'The respective substantial shareholders will in due course be releasing the relevant Notice of Substantial Shareholder's Change in Interests/Cessa- tion of Interests (as the case may be).'
The sale of shares was done through Golden Hope Ltd and Lakewood Sdn Bhd, vehicles that are understood to be controlled by the Lim family which owns Malaysian gaming firm Genting Bhd, the parent of Genting Singapore.
All significant shareholders of Genting Singapore will be expected to undergo strict probity checks before the gaming licence is awarded to the casino operator here by the Casino Regulatory Authority (CRA). It is understood that the gaming licence has not been awarded yet.
Speculation on the Macau deal was fuelled when it was revealed on Monday that Genting Group had acquired US$100 million in secured notes from MGM Mirage.
The talk of a divestment of MGM Grand Macau was itself sparked when the New Jersey Division of Gaming Enforcement recommended last week that MGM Mirage sever ties with Pansy Ho, its partner for MGM Grand Macau, adding that the daughter of Chinese gaming magnate Stanley Ho is an unsuitable partner.
Bloomberg had quoted Ang Kok Heng, chief investment officer at Phillip Capital Management in Kuala Lumpur, as saying that the Lim family may be raising funds to finance a possible investment in MGM Mirage's Macau casino. But he also added: 'It's not easy for Genting or Resorts World Bhd to take over MGM Mirage's venture in Macau because of their investment in Singapore. There's a likelihood the Singapore government may not agree, so the family has to come in on their own.'
This is not the first time Genting Singapore has raised eyebrows in Singapore by associating itself - perceived or otherwise - with Stanley Ho.
In 2007, after winning the tender to build one of two casino resorts in Singapore, Genting Singapore said it was looking to sell a stake in Star Cruises - which was then its partner in the Sentosa resort - to Stanley Ho. Genting Singapore later had to backtrack on this and subsequently acquired Star Cruises' entire stake in the resort in an apparent bid to pacify the Singapore government.
Tuesday, May 26, 2009
Singapore Hotel Market 'May Firm Up In 2010'
Source : The Straits Times, May 25, 2009
IRs could boost room demand across the board, says consultancy
HOTELS are feeling the pinch of recession, with occupancy down and room rates falling in the wake of plunging visitor arrivals.
The upcoming Marina Bay Sands IR (right, background), which is set to open next year along with Resorts World at Sentosa, could increase visitor arrivals here and generate significant demand for hotel rooms, says Horwath HTL managing director Robert Hecker.-- ST PHOTO: ALPHONSUS CHERN
But the good news is that the market could stabilise as soon as next year, according to hotel consultancy Horwath HTL. It bases its optimism on the two integrated resorts (IRs) drawing plenty of visitors when they open in Marina Bay and Sentosa next year.
In the first three months of this year, occupancy fell 12per cent to 67per cent for mostly three- to five-star hotels. The crunch has already prompted a 16 per cent decline in average daily rates (ADRs) to $260.
'We are projecting a further decline for full-year 2009, but with the strengthening of the (Singdollar), the US dollar ADR remains approximately in the same range,' said Horwath HTL managing director Robert Hecker.
Hotel demand started to slip early last year, but hotels were driving their ADR growth even though occupancies were falling, he added.
Mr Hecker said the ADR was positive until last September's Formula One race, and then the situation 'caught up with Singapore. We'll see a few more months of decline'.
This decline is unavoidable, given the downturn, and the industry has basically written off this year, he added.
'It's all about 2010 and trying not to lose anything in 2009,' Mr Hecker told the Hotel Investment Conference Asia Pacific here last week.
Singapore had around 39,000 hotel rooms last year and will add 1,100 more rooms in the three- to five-star range this year and a further 20per cent next year, thanks mainly to the IRs, he said.
But the huge additional supply coming onstream concerns some analysts, given the falling tourism numbers.
Visitor arrivals recorded a 10th consecutive month of decline in March. About 10.1million visitors arrived last year, short of the 10.8million target.
Before the global downturn hit home, Singapore was aiming to attract 17million visitors by 2015.
Singapore Tourism Board (STB) data for March showed that the average occupancy rate for all hotels here fell 13percentage points to 74per cent, while the average room rate stood at $196, down 18.5per cent from the figure a year ago. Revenue per available room fell nearly 31per cent to $145in March.
But Mr Hecker told the conference that the market will hold next year.
'We believe the opening of the two IRs next year will generate significant amounts of induced demand to help absorb their new rooms and prop up the overall market,' he said. 'There will be visitors at all price points such that demand will spread across the market.'
Additional business in the Mice - meetings, incentive travel, conventions and exhibitions - industry will also be significant, he added.
Another conference speaker, Park Hotel Group director Allen Law, who is keen to invest further in Singapore, said a lot will depend on how the IRs release their hotel rooms. It will have to be in phases so as not to flood the market, he told The Straits Times.
Horwath believes occupancy this year and the next will average 65 per cent to 70per cent, with ADR hovering around $250 to $255.
Unlike the STB, which surveys all hotels, its forecast is primarily for those in the three-to five-star range.
Meanwhile, the hotel investment market will remain subdued going into next year, according to Jones Lang LaSalle Hotels' managing director of Asia investment sales, Mr Mike Batchelor.
He said there would be buying opportunities and postponement of new projects while a few deals are being discussed now.
In the general Asia-Pacific market, institutions and funds are selling while the buyers are Asia-based high-net-worth individuals and families.
Mr Batchelor told the conference that hotel owners should prepare for further asset value write-downs, but he sees light at the end of the tunnel.
So does property tycoon Kwek Leng Beng, who attended the conference. He told The Straits Times that he would restart the South Beach project in Beach Road next year.
City Developments, of which he is executive chairman, announced last November that it was shelving the $2.5billion leasehold project due to the economic turmoil and high construction costs.
Falling rates
Singapore Tourism Board (STB) data for March shows that the average occupancy rate for all hotels here fell 13percentage points to 74per cent, while the average room rate stood at $196, down 18.5per cent from a year ago.
Horwath believes occupancy this year and the next will average 65per cent to 70per cent, with average daily rates hovering around $250 to $255. Unlike the STB, which surveys all hotels, its forecast is primarily for those in the three- to five-star range.
IRs could boost room demand across the board, says consultancy
HOTELS are feeling the pinch of recession, with occupancy down and room rates falling in the wake of plunging visitor arrivals.
The upcoming Marina Bay Sands IR (right, background), which is set to open next year along with Resorts World at Sentosa, could increase visitor arrivals here and generate significant demand for hotel rooms, says Horwath HTL managing director Robert Hecker.-- ST PHOTO: ALPHONSUS CHERNBut the good news is that the market could stabilise as soon as next year, according to hotel consultancy Horwath HTL. It bases its optimism on the two integrated resorts (IRs) drawing plenty of visitors when they open in Marina Bay and Sentosa next year.
In the first three months of this year, occupancy fell 12per cent to 67per cent for mostly three- to five-star hotels. The crunch has already prompted a 16 per cent decline in average daily rates (ADRs) to $260.
'We are projecting a further decline for full-year 2009, but with the strengthening of the (Singdollar), the US dollar ADR remains approximately in the same range,' said Horwath HTL managing director Robert Hecker.
Hotel demand started to slip early last year, but hotels were driving their ADR growth even though occupancies were falling, he added.
Mr Hecker said the ADR was positive until last September's Formula One race, and then the situation 'caught up with Singapore. We'll see a few more months of decline'.
This decline is unavoidable, given the downturn, and the industry has basically written off this year, he added.
'It's all about 2010 and trying not to lose anything in 2009,' Mr Hecker told the Hotel Investment Conference Asia Pacific here last week.
Singapore had around 39,000 hotel rooms last year and will add 1,100 more rooms in the three- to five-star range this year and a further 20per cent next year, thanks mainly to the IRs, he said.
But the huge additional supply coming onstream concerns some analysts, given the falling tourism numbers.
Visitor arrivals recorded a 10th consecutive month of decline in March. About 10.1million visitors arrived last year, short of the 10.8million target.
Before the global downturn hit home, Singapore was aiming to attract 17million visitors by 2015.
Singapore Tourism Board (STB) data for March showed that the average occupancy rate for all hotels here fell 13percentage points to 74per cent, while the average room rate stood at $196, down 18.5per cent from the figure a year ago. Revenue per available room fell nearly 31per cent to $145in March.
But Mr Hecker told the conference that the market will hold next year.
'We believe the opening of the two IRs next year will generate significant amounts of induced demand to help absorb their new rooms and prop up the overall market,' he said. 'There will be visitors at all price points such that demand will spread across the market.'
Additional business in the Mice - meetings, incentive travel, conventions and exhibitions - industry will also be significant, he added.
Another conference speaker, Park Hotel Group director Allen Law, who is keen to invest further in Singapore, said a lot will depend on how the IRs release their hotel rooms. It will have to be in phases so as not to flood the market, he told The Straits Times.
Horwath believes occupancy this year and the next will average 65 per cent to 70per cent, with ADR hovering around $250 to $255.
Unlike the STB, which surveys all hotels, its forecast is primarily for those in the three-to five-star range.
Meanwhile, the hotel investment market will remain subdued going into next year, according to Jones Lang LaSalle Hotels' managing director of Asia investment sales, Mr Mike Batchelor.
He said there would be buying opportunities and postponement of new projects while a few deals are being discussed now.
In the general Asia-Pacific market, institutions and funds are selling while the buyers are Asia-based high-net-worth individuals and families.
Mr Batchelor told the conference that hotel owners should prepare for further asset value write-downs, but he sees light at the end of the tunnel.
So does property tycoon Kwek Leng Beng, who attended the conference. He told The Straits Times that he would restart the South Beach project in Beach Road next year.
City Developments, of which he is executive chairman, announced last November that it was shelving the $2.5billion leasehold project due to the economic turmoil and high construction costs.
Falling rates
Singapore Tourism Board (STB) data for March shows that the average occupancy rate for all hotels here fell 13percentage points to 74per cent, while the average room rate stood at $196, down 18.5per cent from a year ago.
Horwath believes occupancy this year and the next will average 65per cent to 70per cent, with average daily rates hovering around $250 to $255. Unlike the STB, which surveys all hotels, its forecast is primarily for those in the three- to five-star range.
Wednesday, April 22, 2009
Resorts World Expects Strong Hotels Demand
Source : The Business Times, April 22, 2009
RESORTS World at Sentosa (RWS) is expecting strong demand for its hotels from potential corporate clients, based on the positive response to sneak peaks of its designer hotel rooms.
'We fully anticipate over-demand,' RWS vice-president of rooms, Andrew Hickey, told BT. Hotel bookings will open in the second half of 2009. Meanwhile, RWS is also seeing enquiries for its MICE facilities.
Four of the six hotels - Maxims Tower, Hotel Michael, Festive Hotel and the Hard Rock Hotel Singapore - will be launched in the first quarter of next year when the $6.59 billion integrated resort opens its doors. The remaining two hotels, Equarius Hotel and Spa Villas, will be launched during the latter half of 2010.
The different hotels will 'provide a variety of guest experiences', said Patrick Burke, principal architect for Michael Graves & Associates.
For instance, the premier, 120-room Maxims Tower is mostly by invitation only and boasts 24-hour butler service while the 390-room Festive Hotel caters to families.
The six hotels will collectively add 1,800 rooms to the local hotel industry.
RWS, which expects to employ 10,000 staff in all, has over 500 on its payroll at present, of which 80 per cent are Singaporean.
Thirty per cent of the 10,000 staff will be employed in the casino while another 30 per cent will be stationed at the Universal Studios theme park. The remaining 40 per cent will be engaged by the hotels and corporate services.
RESORTS World at Sentosa (RWS) is expecting strong demand for its hotels from potential corporate clients, based on the positive response to sneak peaks of its designer hotel rooms.
'We fully anticipate over-demand,' RWS vice-president of rooms, Andrew Hickey, told BT. Hotel bookings will open in the second half of 2009. Meanwhile, RWS is also seeing enquiries for its MICE facilities.
Four of the six hotels - Maxims Tower, Hotel Michael, Festive Hotel and the Hard Rock Hotel Singapore - will be launched in the first quarter of next year when the $6.59 billion integrated resort opens its doors. The remaining two hotels, Equarius Hotel and Spa Villas, will be launched during the latter half of 2010.
The different hotels will 'provide a variety of guest experiences', said Patrick Burke, principal architect for Michael Graves & Associates.
For instance, the premier, 120-room Maxims Tower is mostly by invitation only and boasts 24-hour butler service while the 390-room Festive Hotel caters to families.
The six hotels will collectively add 1,800 rooms to the local hotel industry.
RWS, which expects to employ 10,000 staff in all, has over 500 on its payroll at present, of which 80 per cent are Singaporean.
Thirty per cent of the 10,000 staff will be employed in the casino while another 30 per cent will be stationed at the Universal Studios theme park. The remaining 40 per cent will be engaged by the hotels and corporate services.
Saturday, March 28, 2009
Hard Rock Hotel To Open On Sentosa In 2010
Source : The Business Times, March 27, 2009
A HARD Rock Hotel will be one of four hotels to open at Resorts World at Sentosa (RWS) in the first quarter of 2010.
Collectively, the four hotels will provide about 1,350 rooms. The other three slated to open in Q1 2010 are Maxims Tower, Hotel Michael and Festive Hotel.
'The Hard Rock Hotel Singapore is a welcome addition to our portfolio,' said Hard Rock International's CEO Hamish Dodds.
The five-star, US$223 million hotel will have 360 rooms, conference facilities and a ballroom that can seat up to 7,300.
Room rates are likely to be 30 per cent dearer than hotels in the surrounding area, as is usually the case with hotels in other theme parks, said RWS chief executive Tan Hee Teck.
Mr Dodds acknowledges the travel slump sparked by the global economic downturn has hit hotel room rates and occupancy levels, but is confident the Hard Rock brand will outperform its competitors in the four to five-star category.
Hard Rock International, which now has 124 Hard Rock Cafes and nine hotels/casinos, is expanding in the US and overseas.
Major projects are on the way in Macau and Penang - scheduled to open this year - as well as in Palm Springs, Atlanta and Panama in 2010. Hard Rock Hotels will also open in Dubai in 2011 and Abu Dhabi the following year.
Despite the tough economic environment, Hard Rock International grew its top and bottom lines last year. Top line was up 7-8 per cent, said Mr Dodds, who declined to reveal figures.
The $6.59 billion RWS project will have a total of 1,800 rooms spread over six hotels, plus a casino and attractions such as South- east Asia's only Universal Studios theme park.
The project expects to generate more than 9,000 jobs by the end of this year and a total of 10,000 when it is fully up and running. It expects 15 million visitors in its first year.
A HARD Rock Hotel will be one of four hotels to open at Resorts World at Sentosa (RWS) in the first quarter of 2010.
Collectively, the four hotels will provide about 1,350 rooms. The other three slated to open in Q1 2010 are Maxims Tower, Hotel Michael and Festive Hotel.
'The Hard Rock Hotel Singapore is a welcome addition to our portfolio,' said Hard Rock International's CEO Hamish Dodds.
The five-star, US$223 million hotel will have 360 rooms, conference facilities and a ballroom that can seat up to 7,300.
Room rates are likely to be 30 per cent dearer than hotels in the surrounding area, as is usually the case with hotels in other theme parks, said RWS chief executive Tan Hee Teck.
Mr Dodds acknowledges the travel slump sparked by the global economic downturn has hit hotel room rates and occupancy levels, but is confident the Hard Rock brand will outperform its competitors in the four to five-star category.
Hard Rock International, which now has 124 Hard Rock Cafes and nine hotels/casinos, is expanding in the US and overseas.
Major projects are on the way in Macau and Penang - scheduled to open this year - as well as in Palm Springs, Atlanta and Panama in 2010. Hard Rock Hotels will also open in Dubai in 2011 and Abu Dhabi the following year.
Despite the tough economic environment, Hard Rock International grew its top and bottom lines last year. Top line was up 7-8 per cent, said Mr Dodds, who declined to reveal figures.
The $6.59 billion RWS project will have a total of 1,800 rooms spread over six hotels, plus a casino and attractions such as South- east Asia's only Universal Studios theme park.
The project expects to generate more than 9,000 jobs by the end of this year and a total of 10,000 when it is fully up and running. It expects 15 million visitors in its first year.
Friday, March 6, 2009
Marina Bay Sands To Be 15% Bigger
Source : The Business Times, March 5, 2009
Size increase, due to redesign, partly accounts for higher budget of US$5.4b
Marina Bay Sands, which is targeted to open around the end of the year, will be 15 per cent bigger in terms of gross floor area (GFA).
The four level casino area will, however, only occupy about 3 per cent of the total GFA.
Bigger and better: About 2% of additional GFA is attributed to the $50m to be spent on art at the resort. This is through a URA art incentive scheme which allows developers more GFA if they integrate art permanently in the design of new buildings in the Central Area
The GFA for the integrated resort was initially expected to be 570,000 sq m (6.14 million sq ft). A 15 per cent increase could take it up to 655,500 sq m (7.06 million sq ft).
MBS general manager and vice-president George Tanasijevich said that since the design of MBS was first revealed, the design of the integrated resort (IR) had undergone 'refinement and redesign' to become both 'bigger and better'.
This increase in size also partially accounts for the current budget for the IR which stands at US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion.
About 2 per cent of additional GFA can be attributed to the $50 million that will be spent on art at MBS. This is through an Urban Redevelopment Authority art incentive scheme which allows property developers of new projects to gain additional GFA, over and above the maximum allowed, if they integrate art permanently in the design of new commercial or residential buildings in the Central Area.
Mr Tanasijevich was speaking at a media briefing yesterday at the construction site of MBS where it was revealed that the IR will now also be 5-storeys higher.
Structural works are almost 75 per cent completed with the structure for the casino building already 'topped up' and the topping up for the three 55-storey hotel towers expected by July.
The hotel towers, which are currently at about the 28-storey level are simultaneously being fitted out.
All this with the aim of opening in time.
While Mr Tanasijevich said they hope to open by the end of 2009, 'or close to it', it is not clear yet which parts of the IR will open first.
He said what will likely open first will be the 'primary contributors of revenue'. He added that MBS was currently in discussions with the authorities on the phasing of the 'progressive opening' of the IR.
Separately, Las Vegas Sands (LVS) chairman and CEO Sheldon Adelson, who was speaking in the US, said that estimates made by analysts for earnings by MBS were 'somewhat low'.
According to a Reuters report, analysts had estimated that MBS could generate Ebitda of between US$500 million and US$900 million.
But citing Singapore's favourable tax regime, Mr Adelson said: 'We will save 25 per cent on average on taxes.'
Mr Adelson's comments come after LVS reported a loss of US$136.5 million in the fourth quarter of 2008, down from a profit of $39.9 million a year ago.
At the time of the filing on Feb 25, LVS also said that it had raised its annual cost savings target to US$250 million.
In addition to this, Mr Adelson said yesterday that it would try and 'squeeze out another US$200 million to US$250 million'. 'If we do that, we are home free,' he added.
According to its Q4'08 filings, LVS has unrestricted cash balances as of December 31 of US$3.04 billion while restricted cash balances were US$194.8 million.
Of the restricted cash balances, it said US$124.1 million is restricted for Macau-related construction and US$61.9 million is restricted for construction of MBS.
Total debt outstanding, including the current portion, was US$10.47 billion. Principal payments required to be repaid in 2009 and 2010 total US$114.6 million and US$197.6 million, respectively.
Size increase, due to redesign, partly accounts for higher budget of US$5.4b
Marina Bay Sands, which is targeted to open around the end of the year, will be 15 per cent bigger in terms of gross floor area (GFA).
The four level casino area will, however, only occupy about 3 per cent of the total GFA.
Bigger and better: About 2% of additional GFA is attributed to the $50m to be spent on art at the resort. This is through a URA art incentive scheme which allows developers more GFA if they integrate art permanently in the design of new buildings in the Central AreaThe GFA for the integrated resort was initially expected to be 570,000 sq m (6.14 million sq ft). A 15 per cent increase could take it up to 655,500 sq m (7.06 million sq ft).
MBS general manager and vice-president George Tanasijevich said that since the design of MBS was first revealed, the design of the integrated resort (IR) had undergone 'refinement and redesign' to become both 'bigger and better'.
This increase in size also partially accounts for the current budget for the IR which stands at US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion.
About 2 per cent of additional GFA can be attributed to the $50 million that will be spent on art at MBS. This is through an Urban Redevelopment Authority art incentive scheme which allows property developers of new projects to gain additional GFA, over and above the maximum allowed, if they integrate art permanently in the design of new commercial or residential buildings in the Central Area.
Mr Tanasijevich was speaking at a media briefing yesterday at the construction site of MBS where it was revealed that the IR will now also be 5-storeys higher.
Structural works are almost 75 per cent completed with the structure for the casino building already 'topped up' and the topping up for the three 55-storey hotel towers expected by July.
The hotel towers, which are currently at about the 28-storey level are simultaneously being fitted out.
All this with the aim of opening in time.
While Mr Tanasijevich said they hope to open by the end of 2009, 'or close to it', it is not clear yet which parts of the IR will open first.
He said what will likely open first will be the 'primary contributors of revenue'. He added that MBS was currently in discussions with the authorities on the phasing of the 'progressive opening' of the IR.
Separately, Las Vegas Sands (LVS) chairman and CEO Sheldon Adelson, who was speaking in the US, said that estimates made by analysts for earnings by MBS were 'somewhat low'.
According to a Reuters report, analysts had estimated that MBS could generate Ebitda of between US$500 million and US$900 million.
But citing Singapore's favourable tax regime, Mr Adelson said: 'We will save 25 per cent on average on taxes.'
Mr Adelson's comments come after LVS reported a loss of US$136.5 million in the fourth quarter of 2008, down from a profit of $39.9 million a year ago.
At the time of the filing on Feb 25, LVS also said that it had raised its annual cost savings target to US$250 million.
In addition to this, Mr Adelson said yesterday that it would try and 'squeeze out another US$200 million to US$250 million'. 'If we do that, we are home free,' he added.
According to its Q4'08 filings, LVS has unrestricted cash balances as of December 31 of US$3.04 billion while restricted cash balances were US$194.8 million.
Of the restricted cash balances, it said US$124.1 million is restricted for Macau-related construction and US$61.9 million is restricted for construction of MBS.
Total debt outstanding, including the current portion, was US$10.47 billion. Principal payments required to be repaid in 2009 and 2010 total US$114.6 million and US$197.6 million, respectively.
Friday, February 20, 2009
Sentosa, Marina IRs Get Pricier
Source : The Straits Times, Feb 20, 2009
Both are revising costs upwards for 2nd time
SINGAPORE'S two integrated resorts (IRs) are getting increasingly expensive, with both developers revising their cost estimates upwards for a second time.
Construction in progress at Marina Bay Sands, certain section of which are expected to open by year's end. It was announced last week that the IR project is now estimated to cost US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion. -- ST PHOTO: ALPHONSUS CHERN
An additional $590 million will need to be pumped into the kitty for the Sentosa project, while the price tag for the Marina Bay Sands development has gone up by US$900 million.
Resorts World at Sentosa yesterday revised the cost for the 49ha resort in its earnings call, bringing it up to $6.59 billion. This is the second time the budget has been revised: It was bumped up from $5.2 billion to $6 billion in November 2007.
Marina Bay Sands will cost more as well. At last week's earnings call, Las Vegas Sands Corp announced its Singapore IR is estimated to cost US$5.4 billion, an upward revision from previous estimates of US$3.6 billion and US$4.5 billion.
No explanations were given by Sands for the increase in cost, but it raised US$2.1 billion last November in a rights issue to cover its projects, including the one in Singapore.
Resorts World at Sentosa chief executive officer Tan Hee Teck said yesterday that additional funding would come from operating cash flows when the casino resort opens next year.
The extra money was needed for improvements to the design of the casino project, he said. Areas which were tweaked included pedestrian flow, the monorail stop at the resort and adjustments to the 24 attractions.
He said: 'We want to make sure each and every attraction is up to standard. We found we needed more money to bring the attractions up to a superlative level.' Moreover, construction costs had risen sharply in the last few years, he added. Steel, for example, rose from $800 per tonne in 2007 to $1,800 last year.
CIMB-GK Song Seng Wun said it was simply bad timing that the IR projects were awarded at the peak of the construction boom, which led to costs spiralling upwards.
Construction projects awarded earlier do not benefit from prices softening since the global financial meltdown, as they had locked in materials at a higher rate, Resorts World's Mr Tan said.
Despite the revision in budget and the ongoing global recession, Mr Justin Tan, managing director of parent company Genting International, said he is 'still as confident' in the success of the project.
As travellers trim their budget to take in short-haul travel, visitors from China and India who may have splurged on trips to Las Vegas or Europe would head to Singapore instead, he added.
Resorts World at Sentosa is slated to open on schedule by March next year.
One section of the resort is due for completion next week when its first 11-storey hotel, the Maxims Tower, is topped off. It will be the first development to be completed at either of the IRs.
Marina Bay Sands is expected to open in the fourth quarter of this year. However, it is uncertain which parts of the resort will be ready as Las Vegas Corp said only 'certain features' are targeted to be ready by December.
The resort has applied to the Government for a staggered opening, but has yet to receive official approval.
Both are revising costs upwards for 2nd time
SINGAPORE'S two integrated resorts (IRs) are getting increasingly expensive, with both developers revising their cost estimates upwards for a second time.
Construction in progress at Marina Bay Sands, certain section of which are expected to open by year's end. It was announced last week that the IR project is now estimated to cost US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion. -- ST PHOTO: ALPHONSUS CHERNAn additional $590 million will need to be pumped into the kitty for the Sentosa project, while the price tag for the Marina Bay Sands development has gone up by US$900 million.
Resorts World at Sentosa yesterday revised the cost for the 49ha resort in its earnings call, bringing it up to $6.59 billion. This is the second time the budget has been revised: It was bumped up from $5.2 billion to $6 billion in November 2007.
Marina Bay Sands will cost more as well. At last week's earnings call, Las Vegas Sands Corp announced its Singapore IR is estimated to cost US$5.4 billion, an upward revision from previous estimates of US$3.6 billion and US$4.5 billion.
No explanations were given by Sands for the increase in cost, but it raised US$2.1 billion last November in a rights issue to cover its projects, including the one in Singapore.
Resorts World at Sentosa chief executive officer Tan Hee Teck said yesterday that additional funding would come from operating cash flows when the casino resort opens next year.
The extra money was needed for improvements to the design of the casino project, he said. Areas which were tweaked included pedestrian flow, the monorail stop at the resort and adjustments to the 24 attractions.
He said: 'We want to make sure each and every attraction is up to standard. We found we needed more money to bring the attractions up to a superlative level.' Moreover, construction costs had risen sharply in the last few years, he added. Steel, for example, rose from $800 per tonne in 2007 to $1,800 last year.
CIMB-GK Song Seng Wun said it was simply bad timing that the IR projects were awarded at the peak of the construction boom, which led to costs spiralling upwards.
Construction projects awarded earlier do not benefit from prices softening since the global financial meltdown, as they had locked in materials at a higher rate, Resorts World's Mr Tan said.
Despite the revision in budget and the ongoing global recession, Mr Justin Tan, managing director of parent company Genting International, said he is 'still as confident' in the success of the project.
As travellers trim their budget to take in short-haul travel, visitors from China and India who may have splurged on trips to Las Vegas or Europe would head to Singapore instead, he added.
Resorts World at Sentosa is slated to open on schedule by March next year.
One section of the resort is due for completion next week when its first 11-storey hotel, the Maxims Tower, is topped off. It will be the first development to be completed at either of the IRs.
Marina Bay Sands is expected to open in the fourth quarter of this year. However, it is uncertain which parts of the resort will be ready as Las Vegas Corp said only 'certain features' are targeted to be ready by December.
The resort has applied to the Government for a staggered opening, but has yet to receive official approval.
Thursday, February 19, 2009
Genting To Invest More
Source : The Straits Times, Feb 19, 2009
Singapore Integrated Resorts
GENTING International, which is building the Resorts World at Sentosa (RWS), is to invest another $590 million in the integrated resort which is due to open in early 2010.
Genting said the extra investments were required because of further changes made last year aimed at increasing the appeal of the IR project. -- ST PHOTO: JOYCE FANG
The extra funds to be pumped in by the company, which is part of Malaysian gaming conglomerate Genting Berhad, will bring its total investment in RWS to $6.59 billion, up from $6 billion, it said in a statement to the Singapore Exchange on Thursday.
Genting said the extra investments were required because of further changes made last year aimed at increasing the appeal of the IR project.
'In the course of the past year, changes have been made to the design and architecture of the integrated resort to substantially improve its entertainment and fun offerings, including enhancements to its casino and Universal Studios Singapore,' said Genting.
'Improvements were made to the quality of interiors as well as foot traffic accessibility to retail and dining outlets.'
The group, which managed to narrow its full-year losses, said it will be incurring substantial costs on the Sentosa IR, and this is expected to have a 'significant impact'on its earnings this financial year.
Capital expenditure before the resort's opening is projected to be less than $6 billion, and hence, the additional investments will be funded by operating cash flows from the IR when it opens.
The group also assured investors that financing for the IR 'is in place', after obtaining a $4 billion credit facility in April last year.
To prepare for the IR's opening in 2010, the group 'will be incurring significant pre-opening costs as it accelerates its human resource recruitment, training and sales and marketing programmes for the integrated resort', it added.
As at the end of last year, RWS has awarded and committed more than $4.5 billion of the $6.59 billion project costs.
The resort will feature four hotels, a 7,300-seat ballroom, as well as the first Universal Studios in South-east Asia.
Genting, also the largest casino operator, reported a full-year net loss of $124.8 million, 67 per cent lower than the $381.45 million of losses chalked up in 2007.
Revenue slipped 14 per cent to $643.8 million, down from $751.65 million in 2007, mainly due to lower revenue from the group's casino operations in Britain on the back of a weakening pound against the Singapore dollar.
---------------------------------------------------------------------
GENTING International on Thursday said its full year net loss narrowed to $124.8 million from $381.4 million but warned that it will be incurring substantial costs for the casino, the Resorts World at Sentosa (RWS).
It also conceded that the development is expected to have a 'significant impact' on earnings this financial year.
The group assured investors on Thursday that financing for the IR 'is in place' after it obtained a $4 billion credit facility last April.
Genting, which is also the largest casino operator in Britain, saw its revenue fell 14 per cent to $643.8.
The firm took a hit from its casino operations in Britain, where a slowing economy and a weakening pound against the Singapore dollar took their toll.
The group also experienced lower business volumes due to the global economic slowdown.
The slowdown is likely to have a material impact on disposable income, which will adversely affect its UK operations, it said.
The group absorbed $100.8 million in impairment losses on intangible assets, mainly due to the general economic slowdown in the UK and rest of the world.
Key expenses were also up, with administrative expenses rising 22 per cent to $42.5 million.
Other operating expenses more than doubled from $15.2 million to $32.7 million.
Singapore Integrated Resorts
GENTING International, which is building the Resorts World at Sentosa (RWS), is to invest another $590 million in the integrated resort which is due to open in early 2010.
Genting said the extra investments were required because of further changes made last year aimed at increasing the appeal of the IR project. -- ST PHOTO: JOYCE FANGThe extra funds to be pumped in by the company, which is part of Malaysian gaming conglomerate Genting Berhad, will bring its total investment in RWS to $6.59 billion, up from $6 billion, it said in a statement to the Singapore Exchange on Thursday.
Genting said the extra investments were required because of further changes made last year aimed at increasing the appeal of the IR project.
'In the course of the past year, changes have been made to the design and architecture of the integrated resort to substantially improve its entertainment and fun offerings, including enhancements to its casino and Universal Studios Singapore,' said Genting.
'Improvements were made to the quality of interiors as well as foot traffic accessibility to retail and dining outlets.'
The group, which managed to narrow its full-year losses, said it will be incurring substantial costs on the Sentosa IR, and this is expected to have a 'significant impact'on its earnings this financial year.
Capital expenditure before the resort's opening is projected to be less than $6 billion, and hence, the additional investments will be funded by operating cash flows from the IR when it opens.
The group also assured investors that financing for the IR 'is in place', after obtaining a $4 billion credit facility in April last year.
To prepare for the IR's opening in 2010, the group 'will be incurring significant pre-opening costs as it accelerates its human resource recruitment, training and sales and marketing programmes for the integrated resort', it added.
As at the end of last year, RWS has awarded and committed more than $4.5 billion of the $6.59 billion project costs.
The resort will feature four hotels, a 7,300-seat ballroom, as well as the first Universal Studios in South-east Asia.
Genting, also the largest casino operator, reported a full-year net loss of $124.8 million, 67 per cent lower than the $381.45 million of losses chalked up in 2007.
Revenue slipped 14 per cent to $643.8 million, down from $751.65 million in 2007, mainly due to lower revenue from the group's casino operations in Britain on the back of a weakening pound against the Singapore dollar.
---------------------------------------------------------------------
GENTING International on Thursday said its full year net loss narrowed to $124.8 million from $381.4 million but warned that it will be incurring substantial costs for the casino, the Resorts World at Sentosa (RWS).
It also conceded that the development is expected to have a 'significant impact' on earnings this financial year.
The group assured investors on Thursday that financing for the IR 'is in place' after it obtained a $4 billion credit facility last April.
Genting, which is also the largest casino operator in Britain, saw its revenue fell 14 per cent to $643.8.
The firm took a hit from its casino operations in Britain, where a slowing economy and a weakening pound against the Singapore dollar took their toll.
The group also experienced lower business volumes due to the global economic slowdown.
The slowdown is likely to have a material impact on disposable income, which will adversely affect its UK operations, it said.
The group absorbed $100.8 million in impairment losses on intangible assets, mainly due to the general economic slowdown in the UK and rest of the world.
Key expenses were also up, with administrative expenses rising 22 per cent to $42.5 million.
Other operating expenses more than doubled from $15.2 million to $32.7 million.
Saturday, January 10, 2009
Sands Puts Eggs In S'pore Basket, Will Open On Time
Source : The Business Times, January 9, 2009
LVS says it has sufficient cash and will scrimp and save on costs elsewhere
Las Vegas Sands (LVS) needs US$4 billion to complete the Marina Bay Sands (MBS) and says reassuringly that it currently has US$6.2 billion in borrowings and liquidity.
Speaking at an investor conference in the US, LVS president and COO William Weidner said that its 'revised business plan', which includes the monetisation of non-core assets, has put the company in a cash position (borrowings and liquidity) of US$6.2 billion.
'The total need that we have is about US$4 billion to get us to the opening of Singapore (Marina Bay Sands). So there is cash available to open Singapore (Marina Bay Sands) in the first quarter of 2010,' Mr Weidner said.
While LVS has 'moth-balled' development of sites five and six at the Cotai Strip in Macau, it is also developing other projects concurrently in the US, notably the Sands Bethlehem.
However, part of LVS' revised business plan includes massive cost cutting at its Las Vegas operations. 'If we take a look at our plan and the risk to that plan, the risk is the underperformance in Las Vegas. We are mitigating that by a tremendous amount of cost cutting,' Mr Weidner said.
He revealed that LVS expects to cut US$100 million in cost in 2009 by cutting expenses, labour, head count and benefits. 'Everywhere that doesn't effect the customer experience, we are cutting, cutting, cutting,' he said.
Indeed, LVS will be focusing on opening MBS on time. 'Our focus is on the current operating environment and stickhandling through 2009 to the opening of Singapore (MBS),' he said.
And for good reason too.
By cornering a good chunk of the 4- and 5-star hotel market around Marina Bay, Mr Weidner projected that with its 2,600 rooms, and an average daily rate of US$269 per room by 2011, LVS hopes to rake in an ebitda (earnings before interest, taxes, depreciation and amortisation) of US$161 million. He also forecasted a rental revenue from its retail component at US$179 million.
More important is that assuming a gross revenue of US$2 billion for MBS, which is about the same as its Macau operations currently, Mr Weidner said that earnings generated from the US$2 billion revenue in Singapore would amount to US$940 million because of the favourable tax regime compared to only US$504 million in Macau.
Mr Weidner's bullish comments come after a particularly tough quarter fraught with speculation that LVS could file for bankruptcy. In November, it had made a regulatory filing that said it was unlikely to meet the maximum leverage ratio covenant, triggering defaults on loans needed to complete projects.
Since then, LVS has announced that it has raised US$2.1 billion of capital.
Addressing the issue of debt, Mr Weidner said: 'The debt that we have is extraordinarily valuable. No one can generate about US$9.8 billion of debt at a blended rate of about 5 per cent in this environment.'
He said that the first maturity of this debt is in May 2011 of about US$800 million followed by May 2012 of about US$776 million.
Confirming the opening of Marina Bay Sands, a spokesman for MBS said it is still targeted to open by the end of 2009.
LVS says it has sufficient cash and will scrimp and save on costs elsewhere
Las Vegas Sands (LVS) needs US$4 billion to complete the Marina Bay Sands (MBS) and says reassuringly that it currently has US$6.2 billion in borrowings and liquidity.
Speaking at an investor conference in the US, LVS president and COO William Weidner said that its 'revised business plan', which includes the monetisation of non-core assets, has put the company in a cash position (borrowings and liquidity) of US$6.2 billion.
'The total need that we have is about US$4 billion to get us to the opening of Singapore (Marina Bay Sands). So there is cash available to open Singapore (Marina Bay Sands) in the first quarter of 2010,' Mr Weidner said.
While LVS has 'moth-balled' development of sites five and six at the Cotai Strip in Macau, it is also developing other projects concurrently in the US, notably the Sands Bethlehem.
However, part of LVS' revised business plan includes massive cost cutting at its Las Vegas operations. 'If we take a look at our plan and the risk to that plan, the risk is the underperformance in Las Vegas. We are mitigating that by a tremendous amount of cost cutting,' Mr Weidner said.
He revealed that LVS expects to cut US$100 million in cost in 2009 by cutting expenses, labour, head count and benefits. 'Everywhere that doesn't effect the customer experience, we are cutting, cutting, cutting,' he said.
Indeed, LVS will be focusing on opening MBS on time. 'Our focus is on the current operating environment and stickhandling through 2009 to the opening of Singapore (MBS),' he said.
And for good reason too.
By cornering a good chunk of the 4- and 5-star hotel market around Marina Bay, Mr Weidner projected that with its 2,600 rooms, and an average daily rate of US$269 per room by 2011, LVS hopes to rake in an ebitda (earnings before interest, taxes, depreciation and amortisation) of US$161 million. He also forecasted a rental revenue from its retail component at US$179 million.
More important is that assuming a gross revenue of US$2 billion for MBS, which is about the same as its Macau operations currently, Mr Weidner said that earnings generated from the US$2 billion revenue in Singapore would amount to US$940 million because of the favourable tax regime compared to only US$504 million in Macau.
Mr Weidner's bullish comments come after a particularly tough quarter fraught with speculation that LVS could file for bankruptcy. In November, it had made a regulatory filing that said it was unlikely to meet the maximum leverage ratio covenant, triggering defaults on loans needed to complete projects.
Since then, LVS has announced that it has raised US$2.1 billion of capital.
Addressing the issue of debt, Mr Weidner said: 'The debt that we have is extraordinarily valuable. No one can generate about US$9.8 billion of debt at a blended rate of about 5 per cent in this environment.'
He said that the first maturity of this debt is in May 2011 of about US$800 million followed by May 2012 of about US$776 million.
Confirming the opening of Marina Bay Sands, a spokesman for MBS said it is still targeted to open by the end of 2009.
Thursday, January 8, 2009
IR Will Open In Q1 2010: Sands Head
Source : TODAY, Thursday, January 8, 2009
LAS Vegas Sands has said it has enough money available to finish its casino project here.
The integrated resort should open by the first quarter of 2010, president William Weidner said last night. The project was originally scheduled to be completed this year.
In November last year, the company Las Vegas Sands announced that it might default on outstanding bonds, signalling its possible bankruptcy.
It added that it would be halting all construction on all properties worldwide due to financial constraints and turned its attention to raising operating capital.
However, it stated then that the Singapore IR was on course for completion on time.
Later in November, the company announced that is had secured US$2 billion ($2.94 billion) in capital-funding commitments. Its total market capitalisation has fallen to US$2.5 billion from a historical high of US$43.7 billion in 2007. AGENCIES
LAS Vegas Sands has said it has enough money available to finish its casino project here.
The integrated resort should open by the first quarter of 2010, president William Weidner said last night. The project was originally scheduled to be completed this year.
In November last year, the company Las Vegas Sands announced that it might default on outstanding bonds, signalling its possible bankruptcy.
It added that it would be halting all construction on all properties worldwide due to financial constraints and turned its attention to raising operating capital.
However, it stated then that the Singapore IR was on course for completion on time.
Later in November, the company announced that is had secured US$2 billion ($2.94 billion) in capital-funding commitments. Its total market capitalisation has fallen to US$2.5 billion from a historical high of US$43.7 billion in 2007. AGENCIES
Subscribe to:
Comments (Atom)
.jpg)
