Sands China reports 28% increase in room revenues for H1 2011
31 August 2011
Macau casino owner and operator Sands China has reported a 28.4% increase in net room revenues for the six months ended June 30, 2011 to US$86.7 million compared to the first half of 2010.
The increase was primarily driven by the strong growth of average daily rate overall and higher hotel occupancy of high-yield transient and wholesale segments due to a continued focus on promotions such as the three-day sales campaign, seasonal packages and incentive schemes given to selected wholesalers, the company said.
It provided the following information on its room activity:
Six months ended June 30, 2011 2010 Change
(US$, except percentages and points)
Sands Macao
Gross room revenues (in millions) 11.1 12.8 (13.3)%
Average daily rate 247 253 (2.4)%
Occupancy rate 86.5% 97.6% (11.1) pts
Revenue per available room 213 247 (13.8)%
The Venetian Macao
Gross room revenues (in millions) 101.6 95.3 6.6%
Average daily rate 225 203 10.8%
Occupancy rate 88.1% 92.4% (4.3) pts
Revenue per available room 198 187 5.9%
The Plaza Macao
Gross room revenues (in millions) 15.1 13.5 11.9%
Average daily rate 331 288 14.9%
Occupancy rate 66.2% 71.0% (4.8) pts
Revenue per available room 220 204 7.8%
Net revenues for the casino owner and operator were US$2,360.8 million in the first half, an increase of US$380.3 million, or 19.2%, compared to US$1,980.5 million for the six months ended June 30, 2010.
Net food and beverage revenues increased 11.2% to US$38.8 million, primarily due to the growth in banquet operations, the company said.
Click here to view the financial earnings statement.
In an update on future developments, Sands China, a subsidiary of global resort developer Las Vegas Sands Corp., said it was completing construction of its integrated resort development on Cotai in phases.
Phase I of the project, which has now been branded Sands Cotai Central, will include two hotel towers, one of which will be managed by Sheraton International Inc. and Sheraton Overseas Management Co. under its Sheraton brand, as well as completion of the structural work of an adjacent hotel tower to be managed by Starwood under its Sheraton Towers brand.
As recently announced, the second hotel tower is to be managed by Hilton Worldwide and IHG under their Conrad and Holiday Inn brands respectively following the termination of an earlier agreement with Shangri-La International Hotel Management in March.
Sands China said it anticipated opening phase I of Sands Cotai Central gradually starting in the first quarter of 2012 with the opening of parcel 5, which will feature approximately 600 five-star Conrad rooms and suites along with approximately 1,200 four-star Holiday Inn rooms and suites.
Phase I also includes the opening of the first hotel tower on parcel 6,which will feature approximately 2,000 Sheraton-branded rooms, along with the second casino and the remaining dining, entertainment, retail and meeting facilities, and is currently scheduled to open in the third quarter of 2012.
Phase II of the project, consisting of the second hotel tower on parcel 6, which will feature approximately 2,000 additional rooms and suites under the Sheraton Towers brand, is projected to open in early 2013.
Phase III of the project is expected to include a fourth hotel and mixed-use tower to be managed by Starwood under its St. Regis brand. The company said it intended to commence construction of phase III of the project ‘as demand and market conditions warrant it’.
