Work on $6.8 billion Resorts World Sentosa expansion to start
Singapore’s two integrated resort (IR) operators are accelerating plans to ramp up their offerings in efforts to draw more visitors.
It comes just as Singapore is raising airport fees for visitors, and against the backdrop of increased competition for tourists from the region, as well as global economic uncertainty.
In a third quarter business update on Nov 7, Genting Singapore said it will commence work on a $6.8 billion expansion of Resorts World Sentosa with new non-gaming attractions.
Construction of a waterfront development, which includes two new luxury hotels with a total of 700 rooms, will begin in November.
Other new attractions include a Harry Potter interactive art experience launching this month, followed by the opening of Minion Land in Universal Studios Singapore in the first quarter of 2025.
Also on Nov 7, rival Marina Bay Sands (MBS) gave an update on the ongoing US$1.75 billion refurbishment of its three hotel towers, which began in 2022. It involves the addition of 1,850 new hotel rooms, including 775 suites. Before the renovations, there were around 2,560 rooms and suites in total.
MBS said that approximately 1,540 new rooms, including 635 suites, have been completed across all three towers.
MBS is also undertaking a major US$8 billion expansion with the development of a fourth tower to start in July 2025. The expansion will add 570 hotel rooms, a 15,000-seat entertainment arena and additional space for Mice (meetings, incentives, conferences and exhibitions) events, among others.
The IR operators are ramping up their offerings beyond the casino as revenue from gaming appears to be plateauing, while demand for a greater variety of entertainment is rising, especially during holiday seasons.
Genting Singapore reported a 19 per cent year-on-year drop in third-quarter revenue to $561.9 million on Nov 7, sending its Singapore-listed shares tumbling as much as 7.7 per cent on Nov 8.
The drop was mainly attributed to lower VIP rolling volume, which refers to the total amount of wagers made by high-stakes gamblers.
At $330 million, gaming revenue was down 28 per cent from a year earlier. Against the second quarter of 2024, it fell 14 per cent.
Non-gaming revenue rose 2 per cent to $231.8 million. This was despite the full closure of Hard Rock Hotel at RWS for renovation and re-branding, and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium.
With all this, Genting Singapore’s adjusted operating profit fell 53 per cent to $163.9 million.
Its stock was down 4.8 per cent at 80 cents at the midday trading break. Genting Singapore has lost about 20 per cent this year, making it among the worst performers on the Straits Times Index, which is up 15 per cent.
The gaming slump has also hit MBS.
In October, MBS reported a 9.5 per cent year-on-year fall in total revenue for the third quarter to US$919 million. The casino business, while still the largest revenue contributor, saw a 14 per cent drop to US$600 million.
While gaming revenue fell, hotel room revenue remained unchanged year-on-year. Even though occupancy rates dipped slightly, the average daily rate per room rose.
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