Posted on: November 15, 2023, 02:12h.
Last updated on: November 15, 2023, 02:12h.
Resorts World Sentosa’s parent company Genting Singapore Limited, a division of the Genting Group based in Malaysia, is nearly doubling down on its planned renovation and expansion of the integrated casino resort.
Fresh off a solid third quarter where net profits surged 59% to S$216.3 million (US$160.1 million), bolstered by strong gaming revenue and record room rates, Genting Singapore has decided to significantly increase its expansion of the sprawling resort.
First announced in 2019, Genting originally planned to spend about $2.9 billion in updating and expanding Resorts World Sentosa. Work is underway with renovating the Forum, the property’s shopping and dining complex, and the Minion Land theme park inside Universal Studios. The building of the Singapore Oceanarium is also progressing and is expected to open in early 2025.
With Resorts World business booming in the city-state, Genting is upping the budget for the renovation and expansion to a little more than $5 billion.
Project Expands
Genting Singapore revealed during its third-quarter earnings release that it now plans to build a new 700-room hotel and waterfront development on Sentosa Island. A company statement said the new hotel will “form a monumental gateway to Resorts World Sentosa and the new Greater Southern Waterfront precinct.”
The hotel will integrate into nature through “biophilic architecture,” a design philosophy that seeks to connect people with nature through buildings. The property will be highlighted by a “striking new waterfront sculpture” that will “transform Singapore’s skyline.”
The forthcoming resort, slated to begin construction next year and be completed by 2031, will target premium mass customers. That’s a bit of a diversion from Resorts World’s longtime focus on families.
RW Sentosa currently operates five hotels with approximately 1,600 rooms. The resort’s current attractions, in addition to Universal Studios Singapore, include the S.E.A. Aquarium, Adventure Cove Waterpark, and Dolphin Island. All are tailored towards families.
We are confident that this investment will firmly anchor Resorts World Sentosa as the most sought-after tourism destination in Asia, and propel the Group’s strong future growth,” the company release read.
Genting Singapore says its increased expansion budget has already been approved by the company’s board of directors.
Analysts Like Premium Focus
Nomura analysts Tushar Mohata and Alpa Aggarwal wrote in a note following the Genting Singapore news that the company focusing on the premium segment is a bet that should pay off.
“Return on invested capital from a more premium product should be higher, as seen in recent Marina Bay Sands results after their hotel suites were launched,” the note read.
Resorts World Sentosa and Marina Bay Sands hold a duopoly on casino gambling in Singapore.
In 2019, the two casino resorts received an extension of their gaming privileges that runs through January 2031. In exchange, RW Sentosa and Marina Bay Sands each pledged to further invest $3.3 billion into their properties.
Resorts World opened in January 2010 at a cost of $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 additionally has Resorts World-branded casinos in Malaysia, the UK, the Philippines, the US, and the Caribbean.