VALUATION HIGHLIGHTS

1. Singapore Gaming & Hotel (Singapore Gaming, Singapore Hotel) constitutes 51% of the Trefis price estimate for Las Vegas Sands's stock.
2. Macau Gaming & Hotels (Macau Gaming, Macau Hotels) constitute 32% of the Trefis price estimate for Las Vegas Sands's stock.
3. Food, Convention, Retail and Others constitute 17% of the Trefis price estimate for Las Vegas Sands's stock.

WHAT HAS CHANGED?

Las Vegas Sands' FY 2024 Overview

Las Vegas Sands demonstrated robust financial growth in 2024, with consolidated adjusted property EBITDA increasing by 7% to $4.4 billion. This performance was driven by strong post-pandemic recovery in key markets, particularly Macao and Singapore.

Macao Operations: Aided by a 24% rise in gross gaming revenue across the market and a 29% uptick in mainland China visitation, Macao operations delivered significant growth.

Marina Bay Sands, Singapore: The property achieved a 10% year-over-year increase in adjusted property EBITDA, totaling $2.1 billion. This growth was supported by higher visitor numbers and enhancements to luxury amenities.

LVS carries $13.75 billion in debt and is undertaking substantial capital projects. These include an $8 billion investment in the Marina Bay Sands expansion and $4.5 billion allocated to developments in Macao.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of LVS that present opportunities for upside or downside to the current Trefis price estimate for LVS:

Macau VIP And Mass-Market Gaming

• LVS Macau Rolling Chip Volume: LVS Macau VIP Rolling Chip Volume fell from $65.2 billion in 2019 to $12.2 billion in 2020, due to the coronavirus-related lockdowns. The value further fell to $4.2 billion in 2022, as China closed its international borders. However, this metric improved to $20 billion in 2023, on the back of a recovery in the Chinese economy. In 2024, this metric stood at over $21 billion.


• LVS Macau Non-Rolling Chip Drop: LVS Macau mass-market gaming chip dropped from $24.5 billion in 2019 to $5.4 billion in 2020, driven by coronavirus-driven lockdowns. The value further fell to $3.9 billion in 2022, as China closed its international borders. However, this metric recovered to $21.3 billion in 2023 and further to $24.2 billion in 2024, as imposed restrictions were removed and visitation increased. We forecast this metric to reach about $30 billion by the end of our forecast period. If LVS Macau's mass-market gaming chip drop grows at a higher pace, driven by the growth in visitors from Mainland China, and reaches about $48 billion by the end of the forecast period, there could be a 20% upside potential to our estimate for LVS's stock. In a bearish scenario, assuming that the Macau Casino industry starts witnessing slow growth and LVS's Macau mass-market gaming chip drop reaches only $23 billion, there could be a downside of approximately 5% to our estimate for LVS's stock.

For additional details, select a driver above or select a division from the interactive Trefis split for LVS at the top of the page.

BUSINESS SUMMARY

Las Vegas Sands (LVS) is a leading developer, owner, and operator of destination casino resorts. It presently operates in the U.S., Singapore, and Macau. It operates in Macau and Singapore through its two subsidiaries, Sands China Limited (SCL) and Marina Bay Sands Pte. Limited (MBS), respectively.

1. Macau
   • The Venetian Macao includes approximately 374,000 square feet of gaming space and has approximately 678 table games and 1,140 slot machines. The resort has a 39-floor hotel tower with over 2,900 suites, approximately one million square feet of retail and dining offerings, a convention center and meeting room complex of approximately 1.2 million square feet, and a 14,000-seat arena.

   • The Londoner Macao features four hotel towers. The first hotel tower consists of Londoner Court with 368 luxury suites and 400 rooms and suites under the St. Regis brand. The second hotel tower consists of 659 five-star rooms and suites under the Conrad brand and The Londoner Macao Hotel with 594 London-themed suites, including 14 exclusive Suites by David Beckham. Phase II of The Londoner Macao, initiated in 2023, involves the extensive renovation of the third and fourth hotel towers, previously known as the Sheraton Grand Macao. Upon completion, these towers will feature 1,382 and 1,023 rooms and suites, respectively. The Sheraton Grand Macao is undergoing a rebranding process to emerge as the Londoner Grand hotel, which will hold the distinction of being Macao's first Marriott International Luxury Collection hotel. This strategic transformation aims to elevate the property's appeal and further enhance its luxury offerings.
   • The Londoner Grand casino, launched on September 26, 2024, spans approximately 400,000 square feet, the gaming space includes 513 table games and 1,281 slot machines and electronic table games (ETGs). Adding to its appeal, the property boasts 566,000 square feet of retail space with 164 stores, along with 50 restaurants and food outlets showcasing a diverse international culinary selection.
   • The Sands Macao, the first U.S. operated Las Vegas-style casino in Macao, includes approximately 176,000 square feet of gaming space and gaming support area with approximately 117 table games and 366 slot machines and ETGs. The Sands Macao also includes a 289-suite hotel tower, spa facilities and several restaurants and entertainment areas
   • The Parisian Macao includes approximately 272,000 square feet of gaming space and gaming support area with approximately 267 table games and 900 slot machines and ETGs. The Parisian Macao also features 2,541 rooms and suites and the Shoppes at Parisian, approximately 297,000 square feet of unique retail shopping with 109 stores featuring many international brands and home to 24 restaurants and food outlets featuring an international assortment of cuisines.
   • The Plaza Macao and Four Seasons Macao has approximately 108,000 square feet of gaming space and gaming support area with approximately 105 table games and 13 slot machines and ETGs at its Plaza Casino. The Plaza Macao and Four Seasons Macao also have 360 elegantly appointed rooms and suites managed by FS Macau Lda. The Grand Suites at Four Seasons features 289 luxury suites. The Shoppes at Four Seasons includes approximately 262,000 square feet of retail space with 138 stores and 10 restaurant and food outlets.

2. Singapore

Marina Bay Sands opened with approximately 2,600 rooms and suites located in three 55-story hotel towers. It is currently undertaking extensive renovation work with 1,844 rooms and suites, The Integrated Resort offers approximately 162,000 square feet of gaming space with approximately 543 table games and 3,000 slot machines, and ETGs; approximately 616,000 square feet at The Shoppes at Marina Bay Sands.

SOURCES OF VALUE

We believe that Macau gaming operations are the primary source of value for Las Vegas Sands because:

Significantly Higher Volume Than Las Vegas Casinos

Although the Macau business has faced headwinds in the last few years due to the pandemic, the division remains LVS's most valuable business unit. There is a very high demand for gambling in Macau, the only place in China where gambling remains legal. A lot of tourists from nearby countries visit Macau for gambling. The casino business is primarily divided into Macau categories: VIP gaming and mass-market gaming. Las Vegas Sands has established a critical mass in the region, helping the casino giant attract more and more VIP players.

Another factor that drives Las Vegas Sands' value is its Singapore Operation.

Premium brand image

LVS is recognized worldwide as a premium brand resort. It has a sophisticated style and offers exquisite luxuries to its customers. It mainly caters to high-end gaming customers. LVS has a Plaza Club that offers high-end services and amenities to VIP customers, such as luxurious suites, spa facilities, and private gaming rooms. It also has a Canyon Ranch Spa Club operated by Canyon Ranch. Marina Bay Sands offers exquisite luxuries to its customers. It has seven celebrity restaurants and a 15-meter-long rooftop swimming pool.

KEY TRENDS

Increasing share of Asia casino revenue

Macau is poised for a significant influx of tourists in 2025, with visitor numbers projected to reach nearly 36 million. This growth is largely driven by the expansion of Beijing's Individual Visitor Scheme, which added eight mainland cities to the program in May 2024. In response to this trend, casinos in Macau are investing in innovative technologies and new gaming offerings, including smart tables and enhanced baccarat side bets, aimed at elevating the overall gaming experience.

Key infrastructural initiatives

The Macau government is reinforcing a series of initiatives to drive visitor growth in the region. The gaming industry is a key contributor to Macau's GDP. The government is investing in new transportation links to ease travel for Chinese visitors. It should be noted that most of the tourists visiting Macau are from Mainland China.

The Guangzhou-Zhuhai high-speed railway is expected to improve travel time from Guangzhou to Macau to 40 minutes, down from the 2+ hours taken by bus. The Macau Light Rapid Transit will link ferry terminals and key locations. It will have 12 stops on the Macau peninsula, 11 stops on Cotai and Taipa, and fully integrate different Macau regions.