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Las Vegas Sands Cites Concerns over Japan Development Costs

Infra News - Published on Wed, 06 Nov 2019

Image Source: sgam
Las Vegas Sands Chairman and CEO Sheldon Adelson once pledged to spend USD 10 billion to develop an integrated resort in Japan. Last week, LVS described US$10 billion as just the starting point for a Japan IR, admitting in the process that soaring capex expectations were casting some doubt on the potential to achieve necessary returns. The comments were made by LVS President and Chief Operating Officer Rob Goldstein when asked to discuss likely Japan investment levels during the company’s 3Q19 earnings call. Quoting a figure of USD 12 billion as a genuine possibility, Goldstein noted that, “No matter how good you are at this business, that must give you pause to stop and think, ‘Is that prudent? Can you really deploy, can you get the return? We’ve had those discussions and we’ve had them with the Japanese government. We have the balance sheet and the capability and the skill set to do it. We’re working through those issues right now but I think USD 10 billion is the starting point. I don’t think anybody’s going to do it for less than USD10 billion, unless you’re going to do something sub-par.”

In August, LVS became the first company to officially withdraw from the race for an Osaka IR and declare its intention to focus on Tokyo and Yokohama instead – two cities with much larger population bases than Osaka and easier access for tourists.

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Posted By : Ratan Singh on Wed, 06 Nov 2019
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