The city-state of Singapore currently has two hotel-casinos: the Marina Bay Sands on one side and Resorts World Sentosa on the other. A few days ago, it was announced that a $1.1 billion renovation was underway at the Marina Bay Sands, operated by the American group Las Vegas Sands.
Now, it’s the turn of Malaysian conglomerate Genting to announce that it is also preparing to modernize its complex. This work, budgeted at approximately $287 million, will begin this year and last two years.
A renovation of 3 of the hotels and the Resorts World Convention Centre
In 2019, both licensed operators in Singapore announced expansions to their respective hotel-casino properties. The Genting conglomerate, for example, announced it would invest approximately $3.34 billion in the project, which will add approximately 164,000 square meters of leisure and entertainment space.
Unfortunately, due to the international Covid-19 coronavirus pandemic, construction work had to be postponed. With the health crisis having subsided but still resulting in a decline in attendance at the gaming establishment, it’s the perfect time to begin this ambitious expansion project.
At the same time, a $287 million renovation is also planned. It will only affect three of the resort’s hotels (Hard Rock Hotel Singapore, Hotel Michael, and Festive Hotel) as well as the Resorts World Convention Centre. It is expected to begin in the second quarter and continue over the next two years.
>>> Also read: » Resorts World Sentosa expansion delayed «
A second half of 2021 down compared to that of 2020
The current global Covid-19 coronavirus pandemic is causing a reduction in visitor numbers, providing an ideal opportunity to renovate and refresh Resorts World Sentosa’s facilities with minimal disruption to guests. However, the health crisis has also negatively impacted the resort. This is evident in the results released alongside Genting’s renovation announcement.
Indeed, net profit for the second half of 2021 fell by 49% to just S$95.1 million (roughly €62.17 million) compared to the same period last year.
Revenue also fell by 17% to S$512.5 million (approximately €335 million). Gaming revenue also fell by 16% to S$359.7 million (€235.14 million).
In contrast, non-gaming revenue increased 2% to S$147.2 million (€96.23 million).
A gradual return of customers expected over the next 2 years
As the announcement of this renovation confirms, the Genting conglomerate remains confident about the future of its Resorts World Sentosa, even in the short term. Indeed, there are positive signs that the tourism sector is about to take off again in the city-state.
Health regulations are being relaxed, and tourist travel is once again permitted for vaccinated individuals. The operator therefore expects a gradual return of visitors over the next two years.
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