Upgrades imminent: People take photographs of the Marina Bay Sands resort. The resort will be increasing the number of luxury suites it operates. — AFP
SINGAPORE: Marina Bay Sands (MBS) will inject an additional US$750mil for the second phase of a rejuvenation programme to improve its luxury offerings.
The refurbishment, encompassing the hotel’s Tower 3, the lobby, Sands SkyPark and other key features, will be carried out in phases till 2025, MBS said in a statement yesterday. It will bring the total investment for the programme to US$1.75bil.
The announcement came on the back of strong earnings – net revenue grew 34.3% to US$1bil for July to September 2023, from US$756mil the year before. In the same period, revenue from rooms at MBS, which is owned by Las Vegas Sands, surged by 35.9% year-on-year from US$92mil to US$125mil.
MBS chief operating officer Paul Town said the integrated resort has “made significant progress in delivering new world-leading luxury travel experiences over the past two years”.
“This second phase of reinvestment will be critical as it propels the property to new heights and places us in a strong position to capture future growth opportunities,” he added.
MBS said this second phase will include new dining and retail offerings, as well as more than 550 redesigned rooms, which include 380 suites.
The transformation of the hotel, first announced in 2022, is part of a multi-year programme to strengthen the positioning of the integrated resort as a leader in the luxury hospitality industry, said MBS.
Under the US$1bil first phase, MBS upgraded around 1,280 rooms across Towers 1 and 2, of which 390 are new suites.
After the three hotel towers are renovated, there will be 1,850 refurbished rooms, including some 770 suites.
The ultra-luxurious suites – with the largest at 6,458 sq ft – are housed on the highest floors, from levels 50 to 54 in Towers 1 and 2, and are reserved for the hotel’s highest tier of guests. The experience includes private VIP arrival and dedicated lifts, butler services and exclusive access to the Paiza Sky Club, said MBS.
Jesper Palmqvist, senior director for the Asia-Pacific at hotel industry research firm STR, said the luxury segment was the fastest-recovering hotel class from the Covid-19 pandemic, and remains strong today.
“While geopolitics remains one of the larger volatility factors influencing global travel, alongside overall economic slowdown, demand for travel generally remains quite strong,” he added.
“And while the higher rates across all hotel classes in Singapore are sometimes described as a deterrent and risk for travellers to seek other options, it is important to remember that higher rates are a global movement. Singapore is not alone in this,” Palmqvist said.
Selena Ling, chief economist and head of global markets research and strategy for OCBC, noted that large tourism projects help to lift Singapore as a tourist hub.
Meetings, incentives, conferences and exhibitions – or MICE – have picked up since 2023, she said.
Leisure-visitor numbers have also increased, though there may be “some shifts in the types of leisure visitors, with more bespoke or customised tourism demand”, Ling added.
The Building and Construction Authority said on Jan 15 that between S$14bil and S$17bil in construction contracts are expected to be awarded by the private sector in 2024. The likely major projects include the expansion of the two integrated resorts in the country. — The Straits Times/ANN
