LVS expects Londoner Macao to achieve annual EBITDA worth $1.5 billion

According to Daniel Briggs, Senior Vice President of Investor Relations at Las Vegas Sands Corp., the Macau-based parent company of Sands China Ltd., the Londoner Macao resort is expected to generate at least US$1.5 billion in annual EBITDA after renovations.

This information was disclosed during the most recent JP Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum conducted in the United States.

According to JP Morgan analysts, if Las Vegas Sands management meets its capital spending targets, The Londoner Macao could produce EBITDA of US$1.5 billion to US$1.7 billion, a considerable rise over its current range of US$750 million to US$800 million. With its around US$3 billion investment in The Londoner Macao, the company intends to improve its array of high-end rooms and draw in affluent clients.

Las Vegas Sands said earlier this year that it would be investing an additional US$1.2 billion in Phase 2 of the Londoner Macao refurbishment project. This phase, which began in November and is anticipated to be partially finished by Chinese New Year 2025, will include renovating the Conrad and Sheraton hotels, as well as other structures, and the Pacifica casino area. The business intends to modernize the area by adding additional options for eating, shopping, entertainment, and attractions.

Despite these changes, Las Vegas Sands expects The Londoner Macao to have major operational difficulties in the second part of the year. First phase of the property costing US$1.35 billion includes the iconic Big Ben clock tower and other architectural features evocative of the London Palace of Westminster. An extra $400 million was set aside for the construction of Londoner Court, an apartment building with around 370 units.

The Londoner Macao reported adjusted EBITDA of US$516 million for the whole year 2023, up from a negative number of US$189 million the year before. This is a significant turnabout. Las Vegas Sands is also looking for investment possibilities at the Venetian Macao, which is close to The Londoner Macao, as part of its aspirations to expand the selection of its upmarket suite options. However, the timing and total amount of the investment have not been disclosed.

Las Vegas Sands claims that the market in Macau is undersupplied despite recent regulatory measures, such as restrictions on gaming tables and machines, since there are relatively few hotel rooms and table games in comparison to the Chinese population. In mid-2022, the Macau government limited the number of gaming tables and gaming machines that the six casino concessionaires in the city may have open at any one time.

Original story by: GGRAsia