International edition
September 21, 2020

During a conference held in Las Vegas

Sheldon Adelson commented on Macau Cotai Strip projects

(US / Macau).- Sheldon Adelson, chairman and CEO of Las Vegas Sands, comments on sites 7 and 8 on Macau’s Cotai strip. The company has submitted an appeal to the courts of the city’s government’s rejection of its application for the land. Adelson spoke at the Bank of America Merrill Lynch Gaming Conference in Las Vegas on January 9.

I don’t care who develops seven, eight. I almost prefer it be developed by somebody else because I’ve already got land there, I’ve already got site three. When we build it, it connects to our exhibition and convention center and it will add a lot more to the convention center. We’ve already got the international brands that can help to fill the thing up rather quickly, almost overnight. So, the ramp-up period and the demand period will take a much shorter time than what we could do it ourselves.”

On site 3 “is the InterContinental Hotel and Holiday Inn. So, if we do lot three, then I would do seven and eight. But it’s got to be a year-and-a-half or so before we finish five and six, the Sheraton Shangri-La site. And then we’ve got to start lot three and that could take about three years. By the time I get to seven and eight, it’s too close to the end of the expiration of our gaming concession. Now I don’t think there will be an end to the gaming concessions, because they got to take it away from Stanley Ho -- from his family.

“So I don’t think there will be an end, but I don’t believe that they’re going to give an advanced notice to the world that they’re going to extend the casino concessions. So if they’re not, it’s too close. There is not enough time to build it and to get a benefit out of it.

“So, I’d much rather take our billions of dollars and invest it elsewhere. Now that doesn’t mean I’m losing interest, but if somebody builds it today, it’s going help create more critical mass immediately. And I don’t want to build seven and eight today. The design that we have is not the right design for that property. This was as a result of the previous management, and the way that it was designed is just far too costly. So it’s not on our radar screen to do seven and eight.”

On table-number limits: 

“As far as the limitations on tables are concerned, there’s bad news and there’s good news. The bad news is that you think by putting a cap on number of tables that we won’t be able to expand. The good news is that we have the only must-see property in all of Macau and therefore the increase in the amount of visitation we’re going to benefit from. So we could wring a lot more profit out of the existing properties without worrying about additional competition.

On construction labor:

“We’re satisfied that we’re going to have enough people. There is the Galaxy Cotai that’s going to open; they’ve got about 2,000 rooms and I think it’s going to open in phases. They have about 3,300 Macanese workers they’re going to let go between January and February. We have come to an agreement with them that we are going to pick up those workers. We can get the foreign laborers on a one-to-one basis.”

On site three:

“We own the site. We paid for it. Maybe not 100% based upon the square footage we intend to build, but we paid enough for it, so that they can’t take it back. They can’t do what they did with 7 and 8. Although we’re required to start - or to finish construction - by some time in ‘13, but it’s okay.

“If somebody else builds on 7 and 8, I will be happy - happier than if I were going build on it because it will create the critical mass and it’s a supply driven industry. If somebody puts it up, it’s just going to help to bring more people,” he concluded.

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