Marina Bay Sands (MBS) is an integrated resort (IR) with a hotel, casino, retail mall, convention facilities and entertainment venues including theatres, a museum and nightclubs. Sitting on a 570,000m2 waterfront site at Marina Bay, MBS is operated by Las Vegas Sands (LVS) Corp. and has been one of the company’s most profitable properties since its opening in April 2010. MBS’s distinctive architecture includes three 55-storey hotel towers topped by a 12,400m2 SkyPark and the lotus flower-shaped ArtScience Museum.
Background
In March 2004, the government raised the prospect of the longstanding ban on casinos being lifted as part of a resort development plan for Sentosa and the Southern Islands. The Ministry of Trade and Industry (MTI) then carried out a study on the economic, tourism and social aspects of having a casino within an IR, while the Feedback Unit (now REACH) held dialogue sessions with public groups including those from the religious, grassroots and business communities.
Amid much public debate, the government through the Singapore Tourism Board invited concept proposals for IRs at Marina Bay and Sentosa in December 2004. These IRs would include casinos, with restrictions including entry fees for Singaporeans (S$100 per visit or S$2,000 per annum), curbs on advertising and regulations on credit extended by the casinos.
The casino component of the IRs was debated in parliament in January 2005 and by March, consortiums from the United States, South Africa, Singapore, Australia and Hong Kong had submitted concept proposals for the Marina Bay IR, with the highest bid coming in at S$5.8 billion. The following month, the government confirmed in parliament that two IRs with casinos would be built.
Shortlist and award of Marina Bay IR
In November 2005, the government set the price of the Marina Bay site at S$1.2 billion instead of calling for an open tender. This allowed the bidders to compete on the strength of their concept proposals. The government also announced the judging criteria for the bids: tourism appeal (40%), architectural concept and design (30%), development investment (20%) and track record of the operator (10%). The winning bidder would have a 60-year land tenure and a 30-year concession for the casino (with a 10-year exclusivity period) with its gaming area capped at 15,000m2.
The proposals were whittled to a shortlist of four formal bidders: Las Vegas Sands (LVS), Harrah’s Entertainment partnered by Keppel Land, Genting International partnered by Star Cruises, MGM Mirage partnered by CapitaLand. LVS had been partnered in its bid by Singapore property developer City Developments Limited (CDL), but CDL later withdrew citing the invasiveness of probity checks.
In May 2006, LVS was awarded the rights for the Marina Bay site. Its proposal had the highest investment value of S$3.85 billion, in addition to the land cost of S$1.2 billion. LVS’ strength in the meetings, incentives, conventions and exhibitions sector as well as the distinctive design elements of its proposed architecture were cited as key factors in its winning bid. Analysts had previously ranked LVS behind the other bidders, in part due to its lack of a local partner.
Development
Construction began soon after the award of the project, now named Marina Bay Sands (MBS). In 2008 however, LVS was reported to be in financial trouble. A global economic and financial crisis had hit its businesses and affected its ability to raise financing for its projects. Its share price fell more than 90% from peak levels and the corporation was reportedly close to bankruptcy a number of times.
In November 2008, LVS chairman and chief executive Sheldon Adelson flew to Singapore to meet government officials and reaffirm LVS’s commitment to the MBS project. LVS then suspended developmental work on projects in Las Vegas and Macau to concentrate its financial resources on MBS. It also raised S$3.2 billion through a stock offering, with Adelson putting in more than US$1 billion of his own money, and put in a successful request to the government to open MBS in stages.
The project continued to suffer construction delays, which were attributed to high prices of concrete after an embargo on sand exports by regional countries and the bankruptcy of a number of sub-contractors. Heavy rainfall and labour shortages also contributed to the delays and the escalated cost of the project, which was now at S$7.7 billion. In December 2009 however, LVS announced that MBS would open on a phased basis and commence operations in April 2010.
Layout and design
On a gross floor area of 570,000m2, MBS houses 2,600 hotel rooms across three 55-storey towers, and three low-rise domes which contain a retail mall with over 300 boutiques, convention facilities for up to 45,000 people, fine-dining restaurants and casual eateries, two theatres that seat 2,000 each, an indoor skating rink and a casino. The casino holds 600 gaming tables (with a potential capacity of 1,000 tables) and 1,500 gaming machines. The resort also includes an ArtScience Museum, waterfront pavilions housing retail boutiques and nightclubs, and other outdoor event facilities.
Designed by Canadian architect Moshe Safdie, MBS’s most distinctive elements are its hotel towers topped by a 12,400m2, 6.3 million kilogramme cantilevered SkyPark, which includes an observation deck, restaurants, nightclubs, a swimming pool and gardens. The ArtScience Museum is shaped like a lotus flower, while the low-rise domes feature wave-form roofs. Safdie also integrated around S$50 million worth of art installations within his design for the resort.
Operations
MBS began operations on 27 April 2010 with a phased opening, and officially opened on 23 June. In its first full quarter, MBS made a pre-tax profit of S$315 million on revenues of S$631 million, and these figures rose to S$390 million in pre-tax profit and revenue of S$560.4 million in the following quarter. The figures broke LVS’ records for quarterly profit and profit margin, and made MBS one of the most profitable properties in the LVS group. During its first year of operations, MBS drew 19.6 million visitors and hosted nearly 2,000 meetings, conventions and exhibitions.
Author
Alvin Chua