That will be helpful for the Venetian. It’ll be helpful for the mass to recover. We need to have all of our assets in line. So that’s the Cotai Arena to be finished and the Sheraton to become fully Londonerized, that’s a word, and get to our full key count. And then you’ll see the true power of these assets and the margins will get there. We have a lifestyle program that we run with high-quality amenities. If you haven’t been to Macau and you haven’t seen what we’ve done, I would encourage you to do it. It’s not simply one thing. It’s not simply hospitality. It’s not simply gaming. It’s not simply retail. It’s an ecosystem that allows our customers to travel around all of our assets and have an experience they can’t get anyplace else. And that’s really what we have on offer and it’s unique, and it’s been invested in and it will continue to get better.
So for us, as Rob said, we’re not chasing promotional activity. We’re chasing asset development, and that will drive our success.
Shaun Kelley: Thanks, Patrick, and appreciate the insight. As a quick follow-up for whoever as appropriate. Just looking at Singapore, I mean, obviously, a breakout quarter with a run rate above $500 million. There were some one time things in that market, Taylor Swift, I believe, being one and then, of course, which I think you called out event activity broadly speaking. But also there’s a change in, I think, Chinese visa policies that was probably potentially fruitful for the market. So just the big question here is, what’s the right run rate? And do you think again, maybe event activity agnostic we could sustain above the $500 million mark? And are we kind of off to the race here? And notwithstanding the fact that even that number sounds like it included a little bit of tower three disruption.
Robert Goldstein: I think the first thing you should note is that the building is still under renovation. I think we believe $500 million a quarter annualized is very durable and more. And the most important thing you should note is two things. The growth in Singapore as a desirable destination is soaring. It’s not just Taylor Swift. It’s Bruno Mars. It’s the Hamilton show. It’s endless events, F1. It’s a juggernaut. And really, it’s become accelerated. This market has become very special in a very short order. And I think that’s attributed to government there and the programs happening, entertainment, et cetera. So Singapore is highly desirable, and yes, that’s very sustainable. And as good as Taylor Swift was, there’s a lot more in the pipeline that will make that continue.
Secondly, our building has less than 200 top tier suites. Upon completion, we’ll have an excess of 700. The suite-spot on the market is the premium mass and super premium mass, rolling, non-rolling. We can’t — I think we’re almost approaching a billion dollars a slot when we may be out of bullets there as we get more capacity. But this is a very special market. Our building is a special building. I don’t think there’s any reason to doubt that 520, 540, 600. Look, this may keep growing. This is a great place to be. We’re lucky to be there. We’re lucky that the government is very supportive and excellent team in place. But most importantly, the assets, it didn’t happen by luck. We are doing — spending a lot of money to make sure those assets are superb and the customers come back time and time again.
The real question is what happens when the building has four wheels instead of three? That’s going to happen later this year, in early 2025, when those suites are rolled out and they are great suites. They are phenomenal suites. Can that building go to two-two, two-four, two-five, it can and it will. And I think, again, what we’re trying to tell you about Macau is we’re frustrated by Macau. The operating environment is more difficult. We’re under construction a self-inflicted wound. But once we emulate in Macau and we’ve done in Singapore, the same thing will prevail. Londoner I wish neck and neck to drive that market. And again, I think the government recently talked about a lot of things they’re trying to do. Increase tourism and visas, et cetera.
We see a real nice support system coming out of now, and we’re grateful to the government for recognizing a session this week about increased tourism, increased entertainment. We’re lucky to be in two very, very special places, and, yes, Singapore can do 500, they can do 550. It’s not about Taylor Swift. It’s about a great market, a great asset, and a team running it.
Shaun Kelley: Thank you.
Operator: Thank you. The next question is coming from Robin Farley from UBS. Robin, your line is live.
Robin Farley: Great. Thanks. I just wanted to circle back. You were commenting earlier and the slides were not up yet so I haven’t been able to go through them. But it sounded like you were saying that your sequential growth in mass and premium were both at a similar rate sequentially. And just wondering if there’s anything to add any color around that since, you know, the market has generally speaking been seeing better premium mass recovery. Just any color you’d add there.
Patrick Dumont: Grant, I think you should take that. Grant?
Grant Chum: Yeah, Robin. I don’t know if the deck is up.
Patrick Dumont: It’s up now.
Robert Goldstein: It’s up now, I mean.
Patrick Dumont: It’s up, guys. Yes.
Grant Chum: Yeah. So if you look at a premium mass win, we’re up 2% quarter-on-quarter, and base maths were down 3% quarter-on-quarter. But I think my point earlier is the difference that’s here and there could be related to any number of I think non-substantive factors. So I wouldn’t describe this as a divergence in trend, but this quarter we just did slightly better in premium mass versus base mass. Visitations continue just like see the wider market growing. Our property visitations actually grew sequentially as well. So nothing significant to remark on in terms of the segment divergence.
Robin Farley: Okay, great. That’s helpful. Thank you. And just any thoughts around New York timing and your expectations there? Sort of anything new to add there? Thanks.
Patrick Dumont: Yeah. But we’re very disappointed by New York. I mean, we’ve been working there for a long time and we thought it was going to happen in ’24. That was the state. Now they’re saying ’25 or ’26, but I don’t think we have any real clarity. And to be honest with you, it’s confusing and disappointing because we’ve done a lot of work in New York and a lot of time into it. So I have no guidance because I don’t really know what to tell you with candor and insight. Just don’t know about New York. And it’s just wish — we wish they figured it out and let us know. We just don’t know. So we’ll remain hopeful that things turn around there.
Robin Farley: Okay, great. Thank you.
Robert Goldstein: Thanks, Robin.
Operator: Thank you. The next question is coming from Vitaly Umansky from Seaport. Vitaly, your line is live.
Vitaly Umansky: Hi. Good morning, guys. I think maybe switching over to Singapore if we think about kind of the quantifying the effect of what the renovations at that property have already done, and Rob, you talked about potentially this property getting up to about $2.4 billion, $2.5 billion. In theory, once the renovations are done in the first phase of the property, where do we see kind of constraints being built in? Because if you look at kind of occupancy rates in the hotel rooms today and we look at ADRs, they continue to expand. At some point, we’re going to reach a limit as to how many rooms can be filled, and then we’re talking about trying to fill rooms with higher-value customers. So when we think about before we get to the expansion, where is that constraint, and how quickly do you think we can get there?
Robert Goldstein: It’s a good question. I think unfortunately, it’s probably an answer that we’ve seen that we never dreamed slots with a billion dollars on property that they’re approaching that. We never dreamed that in this environment. So quickly after COVID, we reached the kind of epic levels we’re seeing. The growth in the premium mass is powerful and I was enjoying Grant on the call last week telling us it’s still a drop in the bucket. There’s so much more to go. And so I think the growth will come out of this super premium mass, both rolling, non-rolling. I don’t think ADR is all that impactful because hopefully someday we won’t sell many rooms. This will be a product that is mostly gaming customers in the rooms. I hope the suites we’re building are just exemplary.
And I think that this product is only going to have more good days ahead. I used to do five as a goal for our Company as the decade progresses and it’s very attainable. It reached $600 million almost this quarter in actual is very stimulating. It’s very exciting. But the cash in capacity, it’s already a problem for us in terms of slot machines. It will be a room problem. We wish you had more exposure to Singapore that’s why we’re building more products. This is a very, very special place that people gravitate to. And as Singapore does its job as a lifestyle, entertainment, exciting place to visit, demands have grown. So the only concern we have in Singapore is how quickly we get there. Once these fleets are unleashed in the market, they see it.
I think we’ll have some very bright days ahead. But obviously, it’s a capacity constraint. You only have so many rooms, only have so many slot machines, and I don’t worry about getting there. I just think we get there, we’ll be disappointed can’t have more exposure, and that’s why we’re building phase two.
Patrick Dumont: Hey, Vitaly, one thing, and welcome back to the call. I think the key thing for us is we have a very strong view of the future success of Singapore. So strong that we’re investing a couple of billion dollars in this property and we’re looking to do IR2 as quickly as we can. We think that this market is benefiting from a lot of the factors that make Singapore, great infrastructure, strong, stable government, great investment, great policy. And to be fair, you’re seeing the result of it. And it’s only our business, as many businesses in Singapore. And so I think that that’s a very helpful indicator. But more importantly, the more other investment that goes into Singapore will help drive further visitation. So the infrastructure is already there.
The real question is how many more hotel rooms will go in. We feel very strongly that the more hotel rooms are added will help add to the critical mass of tourism that Singapore already has today. If you look at the wealth creation going around in Southeast Asia, it’s pretty substantial. The last four years, even during the pandemic and they’re pretty meaningful. And there are a lot of customers that are new to Singapore, new to Marina Bay Sands, and they’re affluent and very successful, and they want to consume and they want to take advantage of the Singapore — things Singapore has on offer. And so we feel very strongly about the future visitation in Singapore. It’s an interesting question, where is the peak of demand? We don’t really see it right now.
What we see is a supply constraint, right? When you look at who is trying to come to Singapore and the activities that are going on, we feel very strongly about future investment. We think it’s there.
