Las Vegas Sands Corp Interested In Building Not Buying Casinos

April 23, 2019 by Ella McDonald

Las Vegas Sands Corp is the biggest casino operator in the world and has casino resorts in all of the key markets around the world including Las Vegas, Macau and Singapore.

While a number of casino operators such as Caesars and Eldorado Resorts are in talks about a potential acquisition, Sands Corp is steering clear of any such moves.

Sands management expressed a preference for renovating and expanding its existing resorts located in Singapore and Macau instead of acquiring existing casinos from its competitors.

The company is setting aside a budget of $5.5 billion for further improvements in these current locations which account for roughly 85% of its quarterly revenue stream totals.

Chief Financial Officer Patrick Dumont justified this decision by stating that they believe that they are making judicious use of their existing capital by improving these locations rather than targeting mergers and acquisitions.

Macau And Singapore Developments

Las Vegas Sands has budgeted a little over $2 billion for the improvement and expansion of its Sands Cotai Central complex as it transitions into The Londoner Macau which is set to become a London-themed resort as initially announced in 2017.

Sands Corp is expected to spend $450 million for the 290-suite capacity Four Seasons Tower Suites and $400 million for the completion of the 370-suite capacity St. Regis Tower Suites. Both projects should be done before the end of next year.

The company is also setting aside $3.3 billion for the addition and improvement of the iconic Marina Bay Sands resort in Singapore which will include a 1,000 room hotel, a 15,000 seat arena, and additional space for conventions. This move is to address the existing constraints over the capacity of the resort.

CNA

Company Direction Lauded By Wall Street

Sands Corp under the leadership of its chairman Sheldon Adelson decided that its best interests were in developing its existing resorts rather than going after new ones. Investment analysts approve of these decisions which are expected to continue to add value to shareholders.

Steve Wieczynski, a gaming analyst of Stifel said that these present actions of Las Vegas Sands are in line with the company’s stellar track record of targeting and further developing gaming resort projects which deliver high returns.

Wieczynski also added that Sands was always mindful of maximizing the existing value of its shares which leads to the satisfaction of its shareholders. He expects that these decisions will quickly generate returns over the projected 20% rate as well as position Sands Corp to make big moves in the future

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Ella McDonald Author

Worldwide gambling related news stories are what you will find being written by Ella, she has a keen interest however in UK and European based new stories relating to all gaming environments, and she is always prepared to ask the difficult questions many other journalists avoiding asking those in power.

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