Las Vegas Sands is likely to adjust expected expansion costs related to the Marina Bay Sands revamp in Singapore again, possibly raising the planned budget to $4 billion, brokerage Deutsche Bank estimates.
The project was originally expected to cost $3 billion including $900 million related to the land premium, which was paid several years ago.
In an October, 2023 filing, LVS revealed that the cost for the Singapore casino operator’s expansion plan, will “materially exceed” the initially estimated amount of S$4.5 billion ($3.3 billion) due to inflation, and higher material and labor costs.
The $3.3 billion expansion would include the construction of a new hotel tower with 1,000 rooms and suites, MICE facilities, a 15,000-seat arena, and a rooftop swimming pool.
However, in a recent dispatch, DB analysts state that ‘given comparable developments and the cost escalation associated with these developments over the last several years’ the brokerage nows excepts the property expansion costs will be upped to $4 billion.
‘That said, it is worth noting that the new facility will likely have gaming, which was not contemplated in the prior budget,’ the investment bank added.
In report, Bloomberg revealed that the group was planning to start gathering S$10 billion ($7.4 billion) in bank loans as early as this quarter, to help fund the expansion.
A clear timeline for the conclusion of the project is yet to be provided. Last year, LVS President and Chief Operating Officer, Patrick Dumont, stated that the new tower expansion should be initiated in around “six months to one year” depending on approvals.
