Las Vegas Sands brings a touch of Venice to the US and China.
Replete with gondoliers and a replica of the Rialto Bridge, the
company's Venetian Las Vegas Hotel, Resort & Casino offers a
120,000-sq.-ft. casino and a 4,000-suite hotel, as well as a
shopping, dining, and entertainment complex. Through its
majority-owned Sands China subsidiary, the firm operates The
Venetian Macau on the Cotai Strip (the Chinese equivalent of
the Las Vegas Strip), as well as two other properties
in Macao. Properties also include the Marina Bay Sands in
Singapore and the partially-owned Sands Bethlehem in Bethlehem,
Pennsylvania.
Geographic Reach
The company's 70%-owned Sands China subsidiary consist of three
casinos in Macao, the only place in China where casinos are
legal. These properties include the Sands Macau,
the Venetian Macau Resort Hotel Casino, and the Four Seasons
Macau. Elsewhere in Asia, the company's Marina Bay Sands in
Singapore opened in 2010 at a total cost of about $5.5 billion. In
the US, additional Las Vegas properties include The Palazzo Casino
next door to the Venetian, and the nearby Sands Expo Center trade
show and convention center. Another US property is its Sands
Casino Resort Bethlehem in Pennsylvania.
Sales and Marketing
The company advertises on television, internet, radio,
newspapers, magazines, and billboards. During fiscal 2013 it spent
$117.8 million on advertising after spending $97.8 million in
fiscal 2012 and $51.2 million in fiscal 2011.
Financial Performance
During fiscal 2013 the company's revenue increased by 24%
compared to previous year. The spike was mainly due to increased
revenue from Casino; Rooms; and Mall by 26%; 20%; and 21%,
respectively. Las Vegas Sands' net income increased by 51% during
fiscal 2013 compared to fiscal 2012 mainly due to increased revenue
and decreased interest costs.
Strategy
Las Vegas Sands is in the middle of a major growth
initiative, with several projects in various stages of development.
The company's $4.1 billion expansion plan for its Macao operations
includes a new resort complex, Sands Cotai
Central, that will house hotels under brands such as Sheraton
and St. Regis. Construction is being completed in phases, with
certain operations to be opening in 2012 and 2013. Driven
by its success in Macao and Singapore, in 2011 Las
Vegas Sands completed a major expansion at its Sands
Casino Resort Bethlehem. Included in the remodel was the addition
of a hotel, retail space, and an entertainment center.
Despite these ambitious expansion plans abroad and at home in
Pennsylvania, the company remains cautious in Las
Vegas. A challenging economic environment caused Las Vegas
Sands in 2009 to halt construction of a high-rise residential
condominium tower located next to The Venetian. The
company has reported that construction will resume
when conditions improve and demand for condos on the Strip
increases.