Trefis Charts: Las Vegas Sands’ Marina Bay Sands Hotel RevPAR Growth Compared To Resort World Sentosa

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The chart below compares Las Vegas Sands’ (NYSE: LVS) Singapore Hotel RevPAR growth with that of Genting’s Resort World Sentosa (RWS). 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, both for Marina Bay Sands and Resort World Sentosa. The recent decline can primarily be attributed to weaker currency. It appears that the RevPAR growth has normalized now and we expect around low-single-digit growth rate in 2016. Singapore’s economy itself is expected to pace at around 2% in the near term. It should be noted that there are only two casino resorts in Singapore and Las Vegas Sands’ share of EBITDA in duopoly market stands tall at around 68%.

LVSRWS

Notes:

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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

3) Las Vegas Sands (LVS) Earnings Report: Q4 2015 Conference Call Transcript, The Street, Jan 28, 2016

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

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