Resorts World at Sentosa to open four new hotels next year

Singapore’s second integrated resort operator, Resorts World at Sentosa, has refuted accusations that more than half of the 10,000 jobs available would go to foreigners.

Its management says Singaporeans remain its top priority when hiring, and it is receiving up to a thousand applications a day.

The comments were made at the media preview of four new hotels that will be opening on the island next year.

The Maxims Tower, Hotel Michael, Festive Hotel and Hard Rock Hotel are just four of six hotels that locals and foreigners alike can look forward to staying at.

Each hotel has a unique theme designed to cater to the needs of a particular set of guests.

For example, the Maxims Tower is an all-suite hotel with 24-hour butler service, built directly above the casino.

It is an exclusive by-invitation-only hotel intended for high-rollers, royalty and VIPs.

The six hotels can accommodate up to a total of 1,800 guests.

According to Resorts World at Sentosa, about 40 per cent of the 10,000 people hired will be working in the hotels.

And its management is confident the rooms will be filled, in spite of the uncertain times.

Vice-president, Rooms at Resorts World at Sentosa, Andrew Hickey, said: “Having six hotels plus all the other amenities around the hotels… That’s going to be very, very attractive. And we’re very certain there will be high demand.”

The remaining 60 per cent of 10,000 strong staff will be distributed evenly between the casino and Universal Studios.

Eighty per cent of the 500 people already hired are locals, and Resorts World at Sentosa says that the bulk of the jobs will continue to go to Singaporeans, with the exception of specialist jobs that require experience in gaming and international theme parks.

The Festive Hotel, with its family-themed focus, boasts of loft beds for parents travelling with children. The Festive Hotel, alongside the Maxims Tower, Hotel Michael and the Hard Rock Hotel, will open early next year.

The Resorts World at Sentosa says it is already receiving enquiries about booking reservations.

Source : Channel NewsAsia – Apr 2009

 

Premium for convenience at Resorts World

GUESTS will be charged a premium for a night’s stay in the hotels in Resorts World at Sentosa, when it opens next year.

Yesterday, the casino-resort’s chief executive officer Tan Hee Teck said that hotels in theme parks overseas typically charge a higher rate than similar properties in the city.

This is because they offer visitors a range of attractions within walking distance, including Singapore’s first Universal Studios at Resorts World.

Family travellers with young children will enjoy the convenience of being able to take their tired kids back for a rest before coming back out again, without having to incur extra transport costs.

Minimum rates at five-star properties on Sentosa can range from $375 to $650.

Although Resorts World at Sentosa room rates have not been firmed up, The Straits Times understands that hotels in theme parks can charge up to 30 per cent more than the same class of hotel outside.

However, Mr Klaus Kohlmayr, director of service for hotel consultancy firm Integrated Decisions and Systems International, said it might not be a wise move to do so in such a weak market.

He said: ‘Leisure markets are the most price-sensitive, especially for families. They might decide it is cheaper to stay outside and take a taxi in for the day.’

Still, Resorts World at Sentosa is confident of drawing the crowds when it opens its doors next year.

The 49ha integrated resort on Sentosa – Singapore’s second after the Marina Bay Sands project – expects 15 million visitors in its first full year of operation. Mr Tan said the resort, with its theme park, casino, shopping and other attractions, is a destination in itself where people can stay for five to seven days.

The project is on schedule to open in the first quarter of next year, he said.

Of the resort’s six hotels, four – Hard Rock Hotel, Maxims Tower, Hotel Michael and Festive Hotel – will be ready by the first quarter of next year.

Some 1,350 out of 1,800 rooms will be available for the resort’s soft opening, with rooms going on sale by the end of the year.

Yesterday, the media was given a glimpse of the interior of the US$223 million (S$338 million) Hard Rock Hotel. It will have 10 suites, 350 rooms, 26 meeting rooms and a ballroom that can accommodate up to 7,300 people.

Guests will be able to take in live performances in an outdoor venue from the comfort of their room balconies.

In a nod to the resort positioning itself as a family destination, Hard Rock Hotel will have rooms that can accommodate up to six people.

In keeping with Hard Rock’s music industry theme, the hotel will be decorated with guitar-shaped and other musical motifs. Bathroom mirrors adorned with light bulbs will give guests the feel of being in a rock star’s dressing room.

Together with the opening of the new Hard Rock Hotel, Singapore will also get another Hard Rock Cafe, announced Mr Stephen Lau, who heads HPL Hotels & Resorts, the main franchise owner of the Hard Rock brand.

The new cafe, which will be slightly smaller than the one in Cuscaden Road, will be on Resort World’s Festive Walk, a pedestrian mall lined with shops and restaurants.

Mr Lau said the 19-year-old outlet off Orchard Road will also be refurbished.

Source : Straits Times – Mar 2009

Sentosa, Marina IRs get pricier

 

Both are revising costs upwards for 2nd time

SINGAPORE’S two integrated resorts (IRs) are getting increasingly expensive, with both developers revising their cost estimates upwards for a second time.

Construction in progress at Marina Bay Sands, certain section of which are expected to open by year’s end. It was announced last week that the IR project is now estimated to cost US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion. — ST PHOTO: ALPHONSUS CHERN

An additional $590 million will need to be pumped into the kitty for the Sentosa project, while the price tag for the Marina Bay Sands development has gone up by US$900 million.

Resorts World at Sentosa yesterday revised the cost for the 49ha resort in its earnings call, bringing it up to $6.59 billion. This is the second time the budget has been revised: It was bumped up from $5.2 billion to $6 billion in November 2007.

Marina Bay Sands will cost more as well. At last week’s earnings call, Las Vegas Sands Corp announced its Singapore IR is estimated to cost US$5.4 billion, an upward revision from previous estimates of US$3.6 billion and US$4.5 billion.

No explanations were given by Sands for the increase in cost, but it raised US$2.1 billion last November in a rights issue to cover its projects, including the one in Singapore.

Resorts World at Sentosa chief executive officer Tan Hee Teck said yesterday that additional funding would come from operating cash flows when the casino resort opens next year.

The extra money was needed for improvements to the design of the casino project, he said. Areas which were tweaked included pedestrian flow, the monorail stop at the resort and adjustments to the 24 attractions.

He said: ‘We want to make sure each and every attraction is up to standard. We found we needed more money to bring the attractions up to a superlative level.’ Moreover, construction costs had risen sharply in the last few years, he added. Steel, for example, rose from $800 per tonne in 2007 to $1,800 last year.

CIMB-GK Song Seng Wun said it was simply bad timing that the IR projects were awarded at the peak of the construction boom, which led to costs spiralling upwards.

Construction projects awarded earlier do not benefit from prices softening since the global financial meltdown, as they had locked in materials at a higher rate, Resorts World’s Mr Tan said.

Despite the revision in budget and the ongoing global recession, Mr Justin Tan, managing director of parent company Genting International, said he is ’still as confident’ in the success of the project.

As travellers trim their budget to take in short-haul travel, visitors from China and India who may have splurged on trips to Las Vegas or Europe would head to Singapore instead, he added.

Resorts World at Sentosa is slated to open on schedule by March next year.

One section of the resort is due for completion next week when its first 11-storey hotel, the Maxims Tower, is topped off. It will be the first development to be completed at either of the IRs.

Marina Bay Sands is expected to open in the fourth quarter of this year. However, it is uncertain which parts of the resort will be ready as Las Vegas Corp said only ‘certain features’ are targeted to be ready by December.

The resort has applied to the Government for a staggered opening, but has yet to receive official approval.

Source : Straits Times – Feb 2009

Genting Int’l to pour another $590m into IR

Genting International has announced that Resorts World at Sentosa is now expected to increase its investment in the integrated resort (IR) to $6.59 billion, up from $6 billion.

In a statement released yesterday, it added that the additional investment will be funded by operating cash flows from the IR when it opens in the first quarter of 2010. ‘Financing for the resort is in place with the successful syndication of a $4 billion credit facility in April 2008. As at 31 December 2008, Resorts World at Sentosa Pte Ltd has awarded more than $4.5 billion of the $6.59 billion project costs,’ it said.

First to open will be four hotels, the casino, Le Vie Theatre, a 7,300-seat ballroom, and Universal Studios Singapore.

Resorts World’s chief executive officer Tan Hee Teck added that to date, it has drawn down $600 million of its credit facility. One third of the IR was funded by equity. About $2 billion has been set aside for interest costs and pre-operating costs.

At the time of opening, capital expenditure is projected to be less than $6 billion.

Mr Tan said that the increase in investment is due to changes made to the design and architecture of the integrated resort to improve its entertainment offerings, including enhancements to its casino and Universal Studios Singapore.

Of its Universal Studios attractions, 18 out of 24 are new or have been redesigned for Singapore.

Improvements were made to the quality of interiors as well as to foot traffic accessibility to retail and dining outlets.

The last time the budget for the Sentosa IR was revised upwards was in November 2007 – from $5.2 billion to $6 billion. This was attributed to building-cost escalation and more attractions being added.

The budget for Las Vegas Sand’s IR, Marina Bay Sands, has also been increased from US$3.6 billion to about US$4.5 billion.

While construction costs are said to be coming down this year, Mr Tan said that it would only benefit from contracts signed within the last two months.

The announcement comes on the back of Genting International’s full year financial results which saw it register a 14 per cent fall in revenue to $643.8 million, down from $751.6 million a year ago.

This was attributed to lower revenue from the group’s UK casino’s operations and lower interest income. Genting said that revenue from the UK casinos’s operations was affected by the weakening of pound against the Singapore dollar and lower business volumes.

It also reported a net loss of $124.8 million for FY2008, compared with a net loss of $381.5 million for FY2007. This can be largely attributed to a lower impairment loss on goodwill recorded in the current financial year for the acquisition of Genting Stanley of $100.8 million compared with $454.6 million in the previous year.

For the year, it also said that the UK casinos’s operations recorded a loss before impairment, foreign exchange losses and interest expense of $12.5 million compared to a profit of $53.4 million in 2007.

Mr Tan, however, is confident of the success of Resorts World at Sentosa as more cost-conscious Asian holiday-makers are travelling within the region. He said: ‘Asians are telling us they are doing medium to short-haul flights now.’

Source : Business Times -  Feb 2009

Resorts World at Sentosa to top out first hotel this month

Resorts World at Sentosa will top out its first hotel, Maxims Tower, by the end of this month.

The structural completion of the 11-storey hotel marks yet another major milestone in the development of the integrated resort, which remains on track for a soft opening in the first quarter of 2010.

Maxims Tower will open with three other hotels – Hotel Michael, Festive Hotel and Hard Rock Hotel – as well as the casino, Le Vie Theatre, a 7,300-seat Grand Ballroom, and Universal Studios Singapore.

Installation of ride equipment for the many attractions at Universal Studios Singapore has also begun, with testing and commissioning of the attractions scheduled to begin in October 2009.

Source : Channel NewsAsia – Feb 2009

IR : Not a question of if, but when

IRs expected to meet economic targets, albeit with impact from crisis

THE promise, when the Government decided to allow the Integrated Resorts (IRs) in, was a $1.5-billion increase in our Gross Domestic Product (GDP) and 35,000 new jobs – but will these economic rewards now materialise? And if so, when?

In response to questions by Nominated MP Eunice Olsen and Non-Constituency MP Sylvia Lim yesterday, Senior Minister of State for Trade and Industry S Iswaran said the projection remains that the Marina Bay and Sentosa IRs, when they are “fully developed and running”, will achieve their economic targets and create as many as 40,000 jobs.

But whether these will be achieved by 2015 – as originally expected – “is something we will have to study and see”, he said.

“It would be fair to say that due to the global financial crisis and the slowdown already evident in our tourism sector, there may be some impact on the integrated resorts’ business when they open.”

Another issue: Marina Bay Sands (MBS) had announced that its proposed casino floor plan, which had upped the number of gaming tables from 600 to 1,000, had been approved. Ms Olsen wanted to know if the Government had made concessions to its original position.

Mr Iswaran noted that the provisions stipulated all along that up to 15,000 sq m of MBS – within the 3 to 5-per-cent limit of their over 500,000 sq m total area – could be set aside for gaming activities. There has been no change, he added, reiterating that “each development will open as an IR and not just as a stand-alone casino”.

Both MBS and Resorts World at Sentosa have requested for a “progressive opening” and their proposals are now being “carefully considered” by the Singapore Tourism Board (STB) and other government agencies, reiterated Mr Iswaran.

Both IRs had given assurances that they have secured project financing, he added, and the STB will “continue to work closely” with the operators to facilitate the developments’ completion.

Ms Olsen asked if the assurance that taxpayers’ money will not be used to bail out the IRs, can be interpreted to mean that Temasek Holdings will not step into the picture.

Mr Iswaran reiterated that would be a commercial decision to be made by Temasek.

Source : Today – 18 Nov 2008

Resorts World confirms IR opening on track

A Singapore integrated resort (IR) developer confirmed on Monday that its project was on track for a phased opening beginning early in 2010.

‘It hasn’t changed,’ a spokesman for Resorts World at Sentosa told AFP.

The spokesman, who declined to be named, was commenting after a minister said in parliament that the country’s Genting International had sought government permission for the progressive opening.

‘We’ve always said we will open in stages,’ the spokesman said.

Last Thursday the Singapore Tourism Board said the city-state’s other IR developer, Las Vegas Sands, had asked to open its Marina Bay Sands complex in stages instead of in one go at the end of next year.

The government is ‘considering these requests by Marina Bay Sands and Resorts World at Sentosa with due reference to what they have committed’, Senior Minister of State for Trade and Industry, S. Iswaran, told parliament.

‘Even as we do so, our expectation remains that each development will open as an integrated resort, and not just as a stand-alone casino,’ he added.

Mr Iswaran said Genting cited ‘physical on-site constraints’ for its progressive opening.

The development is to include a Universal Studios theme park, which the Resorts World spokesman said will require an on-site storage area while the rides are assembled. That accounts for the site constraints, he said.

But the theme park, casino, four hotels and a dining and shopping area are to open as scheduled in early 2010, he reiterated.

Other features of the project will open later, also as previously announced, he said.

Stephen Weaver, the head of Las Vegas Sands Asia, said last week that his company had run into construction difficulties in Singapore.

Las Vegas Sands has announced a halt to some developments in the southern Chinese gambling enclave of Macau due to trouble accessing credit during the global financial crisis.

But the company said completion of the Singapore project remains its top priority. Marina Bay Sands is to include hotel and convention facilities as well as gaming tables.

Source : Business Times – 17 Nov 2008

Genting trims losses in Q3, IR soft open early 2010

Genting International Public Limited Company said net loss for the third quarter this year was at S$116.83 million compared to S$393.38 million a year ago.

Revenue slipped 1 per cent to S$177.43 million.

The quarter’s results were, however, affected by higher bad debts and exchange losses but these have been cushioned by fair value gains on derivative financial instruments of S$17.1 million recognised in the current quarter.

The group also recognised an impairment loss of S$100.8 million on goodwill arising from its acquisition of Genting Stanley in the current quarter. The impairment loss can be attributed to the general economic slowdown in the UK and the rest of the world. The slowdown has adversely affected business volumes at the Group’s UK casinos.

It said construction is on track for its Singapore Integrated Resort’s soft opening by early 2010.

Source : Business Times – Nov 2008

Markets learn to live with IR worries

Impact of any delay likely to be greater in luxury segment

THE uncertainty surrounding the two integrated resorts projects — in particular, the Marina Bay Sands — is unsettling already fragile sentiment in the property market. After all, the prospects for economic benefits from the IRs have been positive for the market.

But recent developments and positive announcements from the operators have eased fears that the projects would be delayed, with analysts and industry players confident that the IRs will be completed more or less on schedule.

Still, they cautioned that any major delay would affect all parts of the property market — from luxury properties right through to the HDB market.

The Marina Bay Sands resort, which promises jobs for 10,000 people, had been under the spotlight recently, after its parent company Las Vegas Sands ran into financial difficulties.

Jones Lang LaSalle head of research (South-east Asia) Chua Yang Liang noted that the market “understands the significance” of the Marina Bay Sands IR to the Government, which is why it is not getting overly jittery.

Dr Chua said: “It is not in the State’s interest to have a gaping hole and a semi-completed structure right at the mouth of the newly-completed barrage. The negative image that could bring to the international front is not ideal and the State is likely to do what is required to push it on.”

Colliers International director of research and advisory Tay Huey Ying agreed, saying: “There is underlying optimism and confidence that the Government will ensure that the development of the Marina Bay IR will proceed one way or another.”

Prior to the current financial turmoil, the buzz generated by the announcements of the opening of the IRs — together with the F1 Grand Prix — contributed a lot to the property bull run, which has ended abruptly as the world financial crisis develops.

An example is the way “early bird” prices at The Sail @ Marina Bay went up 20 per cent, from $900 per square foot to $1,080 psf, within six months after the IR was given the green light.

Dr Chua said: “While the announcements probably did affect the psychology of the buyers, the direct impact in terms of genuine demand for real estate would only come closer to the completion of the projects with the hiring of new staff to man the resorts.”

On Tuesday, Las Vegas Sands issued a press statement stressing that Marina Bay Sands was its “No 1 priority”, as it pulled the plug on its Macau developments to focus on Singapore.

The threat of bankruptcy appeared to be staved off following the injection of US$525 million ($787 million) by Sands founder and chief executive Sheldon Adelson, but financial analysts expressed concern that it had been achieved “at a heavily dilutive price”.

Any delay to the completion of the Marina Bay Sands IR, said Dr Chua, was likely to hit the mass market more, given that some 60 to 70 per cent of the IRs’ labour requirements are expected to be filled by the local workforce typically residing in HDB flats.

But Ms Tay believe the impact of a delay would be felt greater in the high-end and luxury segments, where speculative activity is stronger.

HSR Property Group chief executive Patrick Liew expect any repercussions to be restricted to private residential properties near the Marina Bay area, with prices dipping by 3 to 5 per cent in the event of a delay.

He said: “The supporting factors for the HDB market are very well controlled. At this point in time, there’s no major oversupply situation and there is still a healthy demand.”

In fact, DTZ senior director of research Chua Chor Hoon felt a slight delay to the completion of the hotels and retail space at the Marina Bay Sands project “may not be a bad thing, as the economy is expected to fare worse next year and it is uncertain whether the expected number of visitors would materialise”.

She added: “So, if some of these are delayed, it would add less pressure to the retail and hotel sectors.”

Regardless of the short-term uncertainty, Ms Tay pointed out the IRs have already left “permanent marks” on the property market. She said: “For example, it has since paved the way for Singapore to be placed on the world map of global investors.

“While the ultimate failure of the IRsto proceed will adversely affect market sentiment, uncertainty and slight delay in the IRs’ completion and opening dates are notforeseen to have any major negative impact on the property market.”

Source : Today – Nov 2008

Sentosa IR 60% ready by 2010

 

Casino, four hotels and many attractions will be up by then; hiring starts next year

THE steel frame for the first ride at the Universal Studios theme park in Sentosa, the Revenge of the Mummy, was winched into place last week.

It is one of the 21 attractions that will be ready to roll when the 49ha Resorts World at Sentosa has its soft opening in the first quarter of 2010. The theme park is part of the Resorts World integrated resort (IR).

Three other rides, including the Transformer one, will be added later.

The picture is much the same in the rest of the resort: About 60 per cent of it will be ready for visitors when it debuts in March 2010.

Of the six hotels, four will be opening then. Maxims Residences, Festive Hotel, Hotel Michael and Hard Rock Hotel will make available 1,400 rooms.

Also slated to open then are the casino and the half-kilometre-long Festive Walk with its shops and restaurants.

Resorts World’s head of communications Krist Boo said negotiations with the Government to fix the opening dates for the remaining 40 per cent of the resort are ongoing. These include its Marine Life Park, the Maritime Xperiential Museum and the remaining two hotels.

Giving an update on the construction yesterday, Ms Boo and executive vice-president of projects Michael Chin said more than 2,000 people are working round the clock on the project.

Construction cannot begin on the western end of the project because the area is now being used as a staging ground to hold the containers of equipment coming in for the construction and fitting-out of the theme park.

Before The Revenge of the Mummy ride could be assembled on site, for example, space was needed to store, lay out and put together the 20 container-loads of equipment making up the ride.

Resorts World had not reckoned on needing this much space.

Mr Chin said that the original plan was to manage the staging within the Universal Studios’ site, but because the park and other properties had to be at least mostly ready by March 2010, this was not possible.

The west end of the resort thus came to be where the theme park attractions were laid out and assembled.

After construction of the four hotels is completed by March next year, their interiors will be fitted out, said Mr Chin.

In the theme park itself, work has also begun on the other attractions such as Jurassic Park and Waterworld. Mr Chin said that by the middle of next year, the exterior of the attractions will be completed, leaving six to eight months to fit out the rides and test them.

Hiring of the 10,000 staff for the resort will also begin then.

Ms Boo also said application for the casino licence should take place ’some time next year’ once half the gross floor area and half the $6 billion budget have been committed.

She said: ‘By late 2009, we should be very comfortably ready for our soft opening in 2010.’

Source : Straits Times – Nov 2008