Trefis Charts: Las Vegas Sands’ Singapore Hotel RevPAR Growth

The chart above compares the RevPAR growth of Las Vegas Sand’s Singapore hotel with Singapore’s GDP growth and visitor arrival growth. Las Vegas Sands opened its casino resort- Marina Bay Sands – in Singapore in 2010. The resort saw stellar RevPAR growth in the past years, maintaining occupancy levels above 96%. This can be attributed to the legalization of casinos in Singapore, which led to higher visitor arrivals, especially from China. In fact, China visitor arrivals have doubled since the legalization of casinos. The casino demand, in turn, has aided the RevPAR growth for Marina Bay Sands. The recent decline can primarily be attributed to weaker currency. It appears that the RevPAR growth has normalized now and we expect around 3.5% growth rate through 2017.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively.

3) RevPAR refers to Revenue Per Available Room. Available Rooms comprise those room in a hotel that are available for guest occupancy, and not subject to renovation or temporary (for example, seasonal) closure. The revenue a room can generate is a function of the nightly or hourly rates it commands.

References:

1) Analysts cut 2016 growth forecast for Singapore economy to 1.9%: MAS survey, Channel News Asia, Mar 16, 2016

2) Singapore forecasts 0-3% visitor arrivals in 2016, Retail News Asia, Mar 7, 2016

For precise figures, please refer to our complete analysis for Las Vegas Sands

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