Londoner Macao renovation to impact Q2 results

Some 2,500 to 3,000 rooms are unavailable due to renovation work.

Macau.- Some 2,500 to 3,000 rooms at Las Vegas Sands’ The Londoner Macao are currently unavailable due to renovation work. A note from JP Morgan analysts following an investor meeting in the United States with Daniel Briggs, senior vice president of investor relations, and Alistair Scobie, vice president of investor relations, said this will impact on Q2 results.

The current phase of renovations, estimated at US$1.2bn, includes upgrades to the Sheraton and Conrad hotels as well as the Pacifica casino space. The Sheraton towers at the complex have around 4,000 rooms.

In the first quarter of the year, Las Vegas Sands had approximately 500 to 600 rooms unavailable due to the renovation of the first Sheraton hotel tower at The Londoner Macao. The company is also updating the Cotai Arena at the Venetian Macao, with projects expected to conclude by the fourth quarter of this year, according to Wilfred Wong Ying Wai, executive vice chairman of Sands China.

Las Vegas Sands has redistributed table demand to other properties in its Macau portfolio. It says it does not anticipate a need to increase its reinvestment rate once renovations are completed and new facilities, including an additional 1,000 suites at the Sheraton, are operational by the end of the year.

The US$2bn Londoner project has opened in phases starting in February 2021. The ‘British-themed’ complex has five hotels, collectively offering nearly 6,000 rooms and suites. 

For the first quarter of the year, Sands China reported net revenue of US$1.80bn, down 2.8 per cent in quarter-on-quarter terms but up 41.6 when compared to last year. Net income was US$297m, compared to a net loss of US$10m in the first quarter of 2023. The Londoner Macao generated net revenue of US$562m, while casino revenue reached US$419m. Adjusted property EBITDA was US$172m.