Resorts World Sentosa spends $5 billion to expand, focusing on high-end customers
Resorts World Sentosa's parent company Genting Singapore Ltd, a subsidiary of Malaysia's Genting Group, has almost doubled its renovation and expansion plans for the integrated casino resort.
Net profit rose 59% to S$216.3 million ($160.1 million) in the third quarter, as Genting Singapore decided to expand the mega-resort on the back of strong gaming revenue and record room prices.
When Genting first announced it in 2019, it initially planned to spend about $2.9 billion to modernize and expand Resorts World Sentosa. Renovations are currently underway at the Forum, the hotel's shopping and dining complex, and Universal Studios' Minion Land theme park.
The construction of the Singapore Aquarium is also progressing steadily. The venue is scheduled to open in early 2025.
As Resorts World business booms in the city-state, Genting has increased its budget for renovations and expansions to just over $5 billion.
Project is expanding
Genting Singapore said in its third-quarter earnings report that it plans to build a new 700-room hotel and beachfront hotel on Sentosa Island. A company statement said the new hotel will "become an important gateway to Resorts World Sentosa and the new Grand Southern Waterfront precinct."
The hotel will integrate nature through "biophilic architecture," a design concept that connects people with nature through architecture. The property will be highlighted by a "striking new waterfront sculpture" that will "transform Singapore's skyline".
Construction of the upcoming resort is scheduled to begin next year and be completed in 2031, targeting high-end mass customers. It's a bit of a departure from Resorts World's longstanding focus on families.
RW Sentosa currently operates five hotels with approximately 1,600 rooms. In addition to Universal Studios Singapore, the resort's current attractions include S.E.A. Aquarium, Adventure Cove Waterpark and Dolphin Island. Everything is tailor-made for families.
"We believe this investment will solidify Resorts World Sentosa's position as Asia's most popular tourist destination and drive strong future growth for the group," the company said in a statement.
According to Genting Singapore, the company’s board of directors has approved an increase in its director expansion budget.
Premium Focus and other analysts
The company's bet on focusing on the high end of the market should pay off, Nomura analysts Tushar Mohata and Alpa Aggarwal wrote in a note following the Genting Singapore news.
Returns on invested capital should be higher for premium products, as recent performance following the launch of Marina Bay Sands hotel suites suggests," the report said.
Sentosa World and Marina Bay Sands resort own the casino gambling duopoly in Singapore.
The two casino resorts received an extension of their gaming privileges in 2019 that runs through January 2031. In return, RW Sentosa and Marina Bay Sands have each committed an additional US$3.3 billion to their properties.
Resorts World opened in January 2010 at a cost of US$5.03 billion. Genting Group is controlled by Malaysian billionaire Lim Kok Thay, who has an estimated net worth of $2.2 billion, according to Forbes. Genting Group also owns Resorts World brand casinos in Malaysia, the United Kingdom, the Philippines, the United States and the Caribbean.
Read also:
- Football 101: What is relegation in football?
- Illegal online gambling company in Pasay City, Philippines charged with sex trafficking
- Pennsylvania House Health Committee expected to advance casino smoking ban bill
- Detroit casino union urges patrons to stay away from iGaming during strike
Source: www.casino.org
