But Nomura warns that the effort to refurbish the resort could lead to a short-term disruption that will drive customers away.<\/p>\n
\u201cThe long-term strategy is sound, but Sands Cotai Central already has limited space and limited access so adding cranes, jackhammers, and scaffolding would not be great for the guest experience,\u201d analysts for Nomura wrote. \u201cIf Las Vegas Sands Corp proceeds, then we see downside risk to 2018-19 consensus estimates in Macau.\u201d<\/strong><\/p><\/blockquote>\nBasing an estimate on a comparable renovation of the Monte Carlo casino in Las Vegas, Nomura estimates that the Sands Cotai Central could lose as much as $100 million to $150 million in EBITDA (earnings before interest, taxes, depreciation and amortization) over the course of two years.<\/p>\n
Renovations Necessary to Address \u2018Competitive Shortfalls\u2019<\/strong><\/h2>\nThe analysts also noted that choosing not to go forward with the renovations was an option for Sands. However, while they would mean no adjustments were required for near-term forecasts, it would increase the likelihood that the Sands Cotai Central could become obsolete in the future.<\/p>\n
\u201cBy proceeding, Las Vegas Sands addresses the competitive shortfalls of Sands Cotai Central sooner than later,\u201d the brokerage stated.<\/p>\n
Just last week, Las Vegas Sands CEO Sheldon Adelson announced the planned rebranding. The goal is to provide a UK-themed experience similar to Sands properties based on other European cities, including the Parisian and the Venetian.<\/p>\n
\u201cIf you think about London, it\u2019s iconic in so many ways, the buses to the Beefeaters,\u201d Sands President and CEO Robert Goldstein told investors.<\/strong><\/p><\/blockquote>\nBut Nomura said that it has concerns about how the property could fit all of these new attractions into its existing plot of land.<\/p>\n
\u201cEven the frontage, where Las Vegas Sands could erect a mini Big Ben and the Tower Bridge, is tight,\u201d the analysts wrote.<\/p>\n
The renovation plan is a part of a larger trend in which Macau-based operators are spending the bulk of their time and money on developments on the Cotai Strip. In August, consultant Andrew Klebanow predicted that the growth in Cotai mirrored the assent of the Las Vegas Strip, which would likely turn downtown Macau into the same type of second-tier destination as downtown Las Vegas.<\/p>\n","protected":false},"excerpt":{"rendered":"
While the Sands Cotai Central\u2019s rebranding may be good for business eventually, construction work could hurt the property\u2019s ability to draw gamblers in the meantime. That\u2019s the word from Japanese brokerage firm Nomura, which made the assessment based on plans announced by Las Vegas Sands last week. As reported in October, Sands is looking to […]<\/p>\n","protected":false},"author":42,"featured_media":62158,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18],"tags":[],"acf":[],"yoast_head":"\n
Sands Cotai Central Rebranding Could Hurt Short Term Revenues<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n