LVS Focuses on Yokohama Bid; Predicts Investment of US$10–12 billion

Following the sudden decision abandon the plans for Integrated Resorts in Osaka, Las Vegas Sands switched focus to other areas, Tokyo and Yokohama. The final decision put the later destination as the “chosen one” to develop a project.

The renowned developer and operator of world-class Integrated Resorts that feature luxury hotels, best-in-class gaming, retail, dining, and entertainment projects a substantial investment for the IRs. The starting sum is noteworthy, but the President and COO justified it by clarifying that they are not “going to do something sub-par.”

Capital Investment

Las Vegas Sands’ executives confirmed their strong determination for Yokohama bid for Integrated Resorts. As they assume, the gigantic project will involve an investment of US$10–12 billion.

Robert Goldstein, President and Chief Operating Officer of Las Vegas Sands, commented as follows:

“I think US$10 billion is the starting point. And I don’t think anybody’s going to do for less than US$10 billion unless you’re going to do something sub-par.”

Goldstein also added:

“You know we have the balance sheet and the capability and the skill set to do it. The question is, can we get a return that?”

The Fitting Skillset

August this year brought a sudden (and to some shocking as well) Las Vegas Sands’ decision to shift away from Osaka. Goldstein justified the move by pointing out the company thought “Yokohama was just a better fit for our skillset.”

Patrick Dumont, Executive Vice President and Chief Financial Officer of Las Vegas Sands commented as follows:

“It would be helpful for us to look in the Japan market and find partners that could be useful to assist in the overall development, and that could be partners that we trade with, that could be partners that invest with us. We’re really meeting with people now.”

Make Room for MGM

The decision to withdraw from Osaka made MGM Resorts International a clear favorite for the area.

The American global hospitality and entertainment company…

…already operates destination resorts in multiple states, indicating their immense experience to help them in the realization of the Osaka IR. The corporation established a thorough strategy to boost the chances to score the bid.

They ed forces with Orix Corp, the Japanese financial service group to increase the chances to make the project come true.

The part of their comprehensive strategy…

…includes the office in Osaka as well, as a way to express the to the city for the approval of a license to build the resorts. Yet it remains uncertain whether the Osaka resorts will be completed in time for the 2025 World Expo.

Source:

“Sands Envisions US$ 10-12 Billion Yokohama Investment”, Niji Narayan, europeangaming.eu, October 28, 2019.