Las Vegas Sands Corp. (LVS), the casino company controlled by Sheldon Adelson, recently announced that the development of the next phase of Cotai Strip project (Parcels 5 & 6) in Macau, suspended in 2008 due to difficult credit market conditions, has resumed and is currently on track.
Las Vegas Sands has secured $1.75 billion project financing through its Chinese subsidiary Sands China Ltd., which includes an additional $300 million of fund originally announced for financing the project. In addition to the project financing, the subsidiary will also spend about $500 million from its initial public offering. The combined figures represent the total amount of funding needed to complete the phases of Parcels 5 & 6 Project.
The first phase of the development is expected to open in third quarter 2011. It includes 3,700 hotel rooms and suites from the Shangri-La, Traders and Sheraton hotel brands and additional retail, gaming and meeting-convention facilities.
Las Vegas Sands expects to open phase two approximately six months later, which includes a 2,300-room Sheraton hotel tower, as well as other non-gaming amenities. Timing for the completion of a third phase, which includes plans for a St. Regis hotel and serviced-apartments, will be announced at a later date. The completion of the project will represent a significant expansion of Las Vegas Sands’ Cotai presence and is expected to attract large convention business.
Macau, the only Chinese city, where gambling is legal, is becoming the largest gaming market in the world. At present, Cotai is the hub of gambling in Macau . Melco Crown Entertainment Ltd. (MPEL) opened its $2.1 billion City of Dreams project in the Cotai area in the previous year. Wynn Resorts Ltd. (WYNN) is also planning to begin construction on its long-idle Cotai plot. The multi-billion dollar luxury resort is projected to open in the near future. Galaxy Entertainment Group, owner of the StarWorld casino resort in downtown Macau, has also accelerated the construction of its Galaxy Macau, expected to open early next year.
We maintain a Zacks #3 Rank on Las Vegas Sands, which translates into a short-term Neutral recommendation.
Las Vegas Sands is the leading global developer of destination properties (integrated resorts) that feature premium accommodations, world-class gaming and entertainment, convention and exhibition facilities, celebrity chef restaurants and many other amenities.
Las Vegas Sands has secured $1.75 billion project financing through its Chinese subsidiary Sands China Ltd., which includes an additional $300 million of fund originally announced for financing the project. In addition to the project financing, the subsidiary will also spend about $500 million from its initial public offering. The combined figures represent the total amount of funding needed to complete the phases of Parcels 5 & 6 Project.
The first phase of the development is expected to open in third quarter 2011. It includes 3,700 hotel rooms and suites from the Shangri-La, Traders and Sheraton hotel brands and additional retail, gaming and meeting-convention facilities.
Las Vegas Sands expects to open phase two approximately six months later, which includes a 2,300-room Sheraton hotel tower, as well as other non-gaming amenities. Timing for the completion of a third phase, which includes plans for a St. Regis hotel and serviced-apartments, will be announced at a later date. The completion of the project will represent a significant expansion of Las Vegas Sands’ Cotai presence and is expected to attract large convention business.
Macau, the only Chinese city, where gambling is legal, is becoming the largest gaming market in the world. At present, Cotai is the hub of gambling in Macau . Melco Crown Entertainment Ltd. (MPEL) opened its $2.1 billion City of Dreams project in the Cotai area in the previous year. Wynn Resorts Ltd. (WYNN) is also planning to begin construction on its long-idle Cotai plot. The multi-billion dollar luxury resort is projected to open in the near future. Galaxy Entertainment Group, owner of the StarWorld casino resort in downtown Macau, has also accelerated the construction of its Galaxy Macau, expected to open early next year.
We maintain a Zacks #3 Rank on Las Vegas Sands, which translates into a short-term Neutral recommendation.
Las Vegas Sands is the leading global developer of destination properties (integrated resorts) that feature premium accommodations, world-class gaming and entertainment, convention and exhibition facilities, celebrity chef restaurants and many other amenities.
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