Las Vegas Sands (LVS) Q3 2026 earnings call transcript

Thank you. Joining the call to the air pack of Dumont, our Chairman and Chief Executive Officer, Dr. Wilford Long, Executive Vice Chairman of SANS China, and Grant Chum, CEO and President of SANS China, and EVP of Asia Operations.

Today's conference call will contain forward-looking statements. We'll be making those statements under the Safe Harbor provision of Federal Security laws. The language on forward-looking statements included in our press release also applies to our comments made on the call today. The company's actual results may differ materially from the results reflected in those forward-looking statements. In addition, we will discuss non-gap measures.

Reconciliation to the most comparable gap financial measure are included in our press release. We have posted an earnings presentation on our website. We will refer to that presentation during the call.

Finally, for the Q&A session, we ask those with interest to please post one question and one follow-up, so we might allow everyone with interest the opportunity to participate. This presentation is being recorded.

I'll not turn the call over to Patrick. Thanks, Dan. Good afternoon. Thank you for joining the call. I want to start with a few summary points. We remain confident in our long-term strategy of both Singapore and Macau, and we'll continue to invest for future growth. We have a long-term view on economic growth in Asia. We believe the trends of economic growth and wealth creation will continue into the future.

Our goal is to position our property portfolio to capitalize on the growing demand of premium travel and world-class entertainment experiences in Asia. We are fortunate to have the balance sheet and cash flow strength to support our meaningful capital investment program.

During our quarterly results, the high-end was softer in both of our markets this quarter, which negatively impacted our reported financial results. Despite this, we delivered strong financial results at Greater Bay Sands in Singapore, generating an EBITDA of $590 million for the quarter. If we had held, as expected, our rolling play, our EBITDA would have been $4 million higher or $594 million.

Singapore remains an ideal market for high-value tourism. Our focus on creating unique and memorable entertainment and hospitality experience for our customers continues to generate industry-leading financial performance. We believe that growth in tourism in Singapore will continue over the long-term. Our financial results continue to reflect the elevation of Greater Bay Sands' structural earnings power following our significant product investments, sweet renovations, service enhancements, and the execution of our premium customer strategy.

Looking further ahead, we remain enthusiastic about the additional growth opportunities presented by our new development project in Singapore, which will be directly adjacent to Greater Bay Sands. It will meaningfully increase our premium suite capacity, service and entertainment offerings, and will include the introduction of a state-of-the-art arena envisioned to be the finest in Asia. We remain on track with the development process and look forward to opening our new development in early 2031, subject to the required government approvals.

Let's turn to Macau. We delivered 529 million of EBITDA for the quarter. If we had held as expected in our rolling play, our EBITDA would have been $11 million lower or $518 million.

Sandshine's growth in gaming revenues and volumes meaningfully outperformed the Macau market overall. We are encouraged by our progress there. Our market share of Macau mask gaming revenue reached 26.1% for the quarter. Our strongest performance is the fourth quarter of 2023. When compared to the third quarter of 2025, we delivered growth in gaming volumes across all segments. Rolling volume was up 31% year over year.

Our non-rolling drop was up 11% year over year. And slide ETG handle was up 26% year over year. We believe these improvements are indicative of our progress in product and service level improvements. I would also like to highlight our approach to reinvestment in Macau has remained consistent over the last several quarters. Our goal is to remain consistent with our reinvestment strategy going forward and to achieve greater profitability as revenues grow in the future.

With respect to operating expenses as we mentioned last quarter, we have elected over the last year to invest in additional table operating hours, increase sales, marketing a customer service personnel, and enhance levels of customer service. We continue to believe these investments are critical to the achievement of our long-term objectives. These objectives are providing outstanding service and hospitality to our customers and creating unique and memorable experiences.

We are continuing to invest in Macau and we are focused on the highest return projects over the next three years to create the best opportunities to increase cash flow.

Through our capital investment program, we are reorienting our Macau portfolio to address the most profitable segments. The renovation of Venetian, which commenced in March, is progressing. We expect to have the Venetian refreshed and reintroduced by Chinese New Year 2028 along with new premium-focused gaming salons and related amenities.

Macau remains the largest gaming market in the world and we believe the market will grow and reach new heights in the years ahead.

We retain our goal of reaching 700 million in quarterly EBITDA and more over time as we fully implement our investment in operating strategies and as the Macau market grows in the future.

Regarding our programs for Jordan Capital, the shareholders, we repurchased 950 million of LVS stock during the quarter. We have now repurchased 19% of the company's outstanding shares over the last 12 quarters. We have approximately $5 million remaining on the $6 billion repurchase authorization from our board approving the lie.

We believe additional repurchases of LVS equity through our share-reversus program will be meaningfully accretive to the company and its shareholders over the long-term. We also paid our recurring quarterly dividend of $0.30 per share during the quarter. In addition, our board has approved a 20% increase in our quarterly dividend to $0.36 per share beginning in the first quarter of 2027.

We also purchased additional shares of SEL during the quarter. The company's ownership percentage of SEL has reached 75.6% as of September 30, 2026.

We look forward to continuing to utilize the company's share-reversus and recurring dividend programs to increase returns to shareholders. Thanks again for joining the call today and for your interest in our list. Thanks for questions.

Yeah, so first off, I do want to point out that there was softness at the high end in both of our markets. And so that was really the story for the quarter for us. I think we made a lot of strides in the things that we're trying to improve and create better experience for our customers. But when the customers don't show up, it's a little problematic.

I think to sort of address your question in terms of Asia, macro, there are a bunch of things going on globally that may have an impact on terms of visitation and how people think about tourism or just their spending during the quarter. I also want to point out that the World Cup final was July 19th, so that did happen.

There are many things in the global environment generally that create a lot of uncertainty in the quarter. And, you know, just one uncertainty is introduced into people's lives and how they think about tourism. It may change their behaviors.

So, you know, I can't really point to one thing that I would tell you that was the cause. We feel pretty confident that the future will not be impacted by this, just knowing what our customers like to do and how frequent they show up and what we have on offer. So we feel pretty good about how we're positioned.

We also don't base our decisions on these cycles. We have a long-term review on growth in Asia. You know, we really believe fundamentally that the trends of economic growth and wealth creation are there, and we'll believe that they'll continue in the future. And that's really what we're focused on. But this quarter was definitely operational and never.

Got it. Thanks. And just on Macau specifically, you've been through several stages of improvement in Macau, right? You improved your properties. You've been promoting a little bit more at a more competitive level, and now you've been investing in increasing your service. So where do you think you are in terms of the op-ex increases in Macau? I'm just giving, obviously, there's concern on kind of the growth outlook for the market and kind of where you sit in the expense structure. Thanks.

So first off, I think we're in early days in terms of our product repositioning, and I think that's really important. So as we get great product online, and these high-value customers come to our properties because of it, the service will really matter. But that will also grow our revenues, our gross gaming revenue. And so just structurally, we're positioning ourselves to grow as we bring these products online, which addresses a segment that is there and that is strong. We just don't have all the product that we want.

I will tell you that we're making progress as evidenced by our volume growth. The drag on our EBITDA was higher expenses. And the reinvestment strategy that we have, as I mentioned in the prepare remarks, is consistent. So it's really, as we continue to grow revenues, we'll gain operating leverage and we'll see more flow through.

Grant, I don't know if you have any other comments or anything you'd like to highlight. I think the most important point for the quarter is we're able to gain revenue share across all segments whilst controlling the reinvestment. As Patrick referenced, we've made remains very consistent in the reinvestment strategy. We have optimized the program significantly over the last nine months.

And we've been able to gain share partly because we've been able to invest back into the customer experience both in terms of service levels as well as our event calendar. So I think you're seeing some of the positive progress that we're making in that regard. With respect to operating expenses, I think we've talked about this before in the last quarter, we've been increasing our payroll as we've hired more gaming staff for the additional table hours as well as the sales distribution and then also the hospitality staff to enhance the service levels.

We see now that this cost increase is embedded in second quarter and third quarter. And I would say that sequentially we are essentially flat in terms of fixed expenses. And we would expect obviously the payroll would inflate by the cost of living adjustment analysis next year, but we don't anticipate significant increase in headcount from this point on.

So in our mind, nothing's changed. This is a $2.7 billion, $2.8 billion run rate property in my mind. That's where we're focused. I think this quarter was operational. There were a bunch of things that happened in this quarter that we thought were unusual. And then I also feel like some of the sentiment out of the market or our highest end players, they didn't visit. So I think for us, this is something where products are still strong, response is still strong from the customers.

We still have a view about that sort of baseline of EBITDA range that I just talked about and hopefully growing from there in the future. That's really what we're focused on. I think there was particular softness in both July and September, just as you look across the quarter. But we feel pretty good about how we're positioned going forward in Q4.

Yeah. So first off, I just want to say that we see meaningful value in both LVS and SEL equity and we're going to continue to act on this belief. So you saw that in full display at this quarter. You know, we intend to continue access returns, sorry, access cash flow to shareholders with the repurchases representing like the larger portion of our overall capital return. So even more of the dividends, you've heard us on prior calls, you know, we've been focused on treating this share cut over time. You know, it's because we see meaningful value in LVS and SEL that we're acting so strongly. You know, we see really long-term value creation in our ability to compound earnings and free cash flow growth per share just by reducing the share count, particularly at current prices.

And our free cash flow and access cash balance flexibility for us to opportunity to increase the amount of share repurchase based on market conditions. And that's what we did this quarter.

And so for us, you know, I think we really understand the importance of share repurchases, but we also understand the importance of maintaining our investment grade rating, which we've used in competitive advantage. So as you kind of think about it, we intend to stay within, you know, what we articulated previously in terms of our gross leverage target of approximately two times to three times. But this is before the impact of any development related debt.

So when you think about share repurchases, we sort of think about it like cash on hand, you know, how do we think about return to capital and how aggressive can we be based on based on the market? And you saw that this quarter.

Great.

Yeah, you know, it's really, it's an interesting thing. I will tell you, over the last couple of years, as we introduced the side bets, there was, you know, the opportunity for players to have a little bit more volatility, but for us to hold a little bit better. I think what happened in Maria Bay Sands is we just didn't hold well during the quarter.

And if you sort of look at that, it's very different from a year ago. And so that will impact our margin and our earnings. So that that hold was meaningful. But the good news is the door swings both ways, right? There are times like a year ago in that quarter where we held really strongly. And the great thing is the volumes are there, the customers are there.

We had a lot of high value patrons at our highest, highest levels, just not show up to score at certain, at certain points. And, you know, if you just don't get that revenue back. So from our standpoint, volumes were good. We missed some customers, but the whole did impact our quarter. But the good news is, in the future, hopefully, that's the nature of our business. And, you know, when you have less offsetting play, the volatility on the bedside matters.

And so for us, you know, having these very high value patrons that come in and Maria Bay Sands is very specialized casino with the best patrons in the world in our view, concentrated at the high end, there's volatility both on the math side and on the rolling side. And, you know, if you go to page 11 or our deck, you know, we lay out our AC hold, our smart table hold, and you can see that volatility.

And that's driven to some extent, as we said, on prior calls by patron decisions and how they choose to wager. But in, you know, on the math side, we just, we did hold as well as we did in prior year. But it did impact us for the quarter. But hopefully, in the future, we'll continue to hold on a positive flag.

Sean, I think in reality, we've had many, many different policy changes, new initiatives that have varying degrees impacted the Macau market to greater less extent over the years. I don't think we can make a judgment on, you know, specific measures that you just referenced. What we can say is that during the quarter, the premium segment was a little softer, but there was also plenty of indicators, suddenly in the SANS China portfolio to indicate that the underlying demand is still very solid and very deep.

We had double digit growth in patron count. We had high single digit growth in property visitations like Patrick referenced. We had very strong gaming volume growth across all segments. Of course, some of that is market share game, but we see in our portfolio, pockets of strength in all segments. This quarter, we were able to capture some of the super high in the premium mass. Unfortunately, we played a little unlucky, and that affected our Londoner whole percentage and EBITDA and margin.

But overall, we saw good progress there. We also experienced strong mid-tier and base mass growth in the properties that are more geared towards those segments. So we're able to significantly outgrow the market at the Parisian and the SANS Macau. And also by product segment, you can see that our slot ETG segment grew 18% year over year in revenue.

That's double the rate of the market growth of 9% in the overall Macau market. And then lastly, when you look at a weaker consumption backdrop in China, our retail tenant sales growth still achieved 10% year on year growth. And it was a mixture of strength in different luxury segments as well as the mass retail segments. So overall, we see a lot of positives still in the underlying demand in visiting Macau and spending there. But yes, the spend per visitor, some of that has softened particularly at the high end.

So it's a great question just to sort of highlight. So really they sense as a cashman area that is Southeast Asia. So if you think about who comes as luxury inbound tourists into Singapore, a lot of that is driven by Southeast Asian people who have been successful. So Indonesia, Malaysia, Thailand, Vietnam, you know, the surrounding areas, Cambodia, South Korea and some Japan. And so the catchment area there is different from what you have in Macau, where the vast majority of visitors come from China or Hong Kong.

And so on the super high end, there's some back and forth, but not a whole lot of overlap. And so the sentiment was consistent in both, but we don't know if it's the same reason or say multitude of reasons or different reasons. We just know that we had a lot of very high end patrons who just weren't visiting as frequently.

And so that's what we saw this quarter in both places. I will tell you that this quarter in our view does not represent the true earnings power of our properties in both Maria Bay Sands or in Singapore, excuse me, or in Macau. So you know, long term, this is something that we think is particular to this quarter and we see strength coming out of it.

Thanks for the question. First of all, the NBA event was a tremendous success this year. It was across a number of categories and even more successful games week than are highly successful one in 2025.

We will discuss the financials of that in January, but you know, from I think all of the media, the social media and the reporting on the week, I think you can see just how successful it was for the entire city across not just the excitement of the basketball, but also the activations we had across the whole resort in the fan zone, in the MICE events, and all of the different brand partners that came to Macau to promote their product and services in Macau.

If you talk about the seasonality of fourth quarter, typically it is a relatively stronger quarter for Macau because of the October golden week and now also a lengthened golden week as a result of the NBA games week. And then typically December will also be relatively strong. So the seasonality would point to a stronger third quarter and stronger fourth quarter compared to the second quarter.

And then as to how this plays out in the current market conditions where we've had a few months of contracting for each of our growth, that remains to be seen. But from a pure seasonality point of view, it is going to be typically a stronger quarter.

We're actually focused on investment for growth, not on cutting our personnel that we just tired. I think we're very excited about the future of Macau. And the way we're sort of looking to make all this converge is we're underway in our investment cycle to renovate and create higher value products for our patrons. But we need the people to run them. We need the team members to operate them to be successful.

So we've hired those teams now. So we can train them, get them up to speed and make sure they're offering seamless for all the service and focused on our customers and in our culture in a very strong way. As the time the product comes online.

And so it's a simultaneous story of capital investment to create the products, the rooms that we have, the suites that we have in the space that we have in Macau, to a higher level to attract these higher value patrons. And at the same time, train and create the opportunities for them to be in our property and have the experiences they need to come back and to spend.

And so we have to do both. And so while we're carrying this additional op-ex, we actually view this as part of the additional investment we need in the future to grow and address the most important segments that are coming to Macau.

Stephen, I'll take the question on Macau, CapEx. If you look at our portfolio, which is we started developing the buildings from 2004 to now, a depreciation charge is somewhere in the region of 750 to 800 million. So spending around 300 million on maintenance CapEx is reasonable and that's reflected in the deck on slide 21 of Dan's deck.

In terms of the development CapEx, if you look at our number for 2027, there are already three key projects that we can reference. Firstly, we have the highest ROI projects in there, which in our minds include the Venetian renovation, then as well as the Comrad renovation and rebranding into a London-a-themed hotel. Those are the most critical projects for us if we are to continue in our product investment and elevation to capture the most important segments in the market.

Then there's a third flagship project, which is for the concession commitment, which is, as you know, we have a botanic garden project that we are looking to accelerate and bring into Macau earlier than we had previously anticipated. We're making good progress on the design. It is going to be one of the most innovative and new tourism landmarks in Macau, so we're very excited to bring that forward and deliver that for the city over the coming years. In regards to Singapore, I don't think there's a better market to deploy CapEx in scale in our industry at the highest end.

In page 29 of our deck, we sort of laid out the MVS expansion and project development. I do want to highlight that of the $8 billion, $2 billion is actually land-free MIMs, and in effect, you can advertise over time, but we just wanted to include everything related to development. The other thing is we're spending a very significant amount on an arena, which we hope is the most important live entertainment venue in the region.

It will be technologically advanced, it will have the IT areas, hospitality areas that are more akin to what you'd see at the top arenas in the US versus ones that are in Asia, and that will be a differentiator. The other thing is it will be integrated and connected to all the amenities of the Marina Bay Sands program.

And so for us, the ability to use this arena not only for live entertainment and to draw tourism into Singapore, which has been evidenced by Taylor Swift and by other large performances that have occurred there, but also to use it as a MICE space and to use it for other forms of entertainment is very powerful. So when you look at the way we think about returns here, it will not only benefit the new developments and the new tower we're building, but it will also enhance the way that we draw a high-value tourist into Singapore to benefit Marina Bay Sands and actually the surrounding area of the Marina Bay precinct.

So the way we think about returns is that this will be very positive, right? If the market continues the way that it is today and we have these conditions, we believe this will be very successful, and we believe very strongly in the future growth of high-value tourism to Singapore because of the focus of the government there and the work that they've done and their continued investment in great tourism assets and connectivity to this surrounding region. We think we're in a great position to take advantage of the structural benefits of being in Singapore and the long-term prospects for wealth creation in Asia and the importance of Singapore in that.

And so for us, the returns, we believe, will be very strong, and we think that having the connectivity back to the arena from Marina Bay Sands and our vice facility will only enhance those offerings as well.

Yeah, I think right now, I think what you're asking is, is there inflation because the current market environment? We haven't seen it yet, but we're monitoring it closely, so a good portion of it is locked in, but there's still a lot to buy, so we're being very thoughtful and very cautious now about the current conditions and how we look to approach some of the fit-out costs and some of the construction costs.

Thank you for the question. The market remains very competitive. That is no secret. We on the other hand have continued to optimise our investment programme, that's been a focus strategy since the first quarter of the year, and we are achieving sequentially a lower-level reinvestment and capturing high market share. So we will continue in that effort, as Patrick said, we will remain consistent in our approach.

We obviously have to respond if market dynamic competition and reinvestment levels change significantly. At this point, we don't see it, but that's not to say the market is not competitive. It remains highly competitive, but we haven't seen significant escalation in the reinvestment levels, and that's why we've been able to do what we're doing, which is to optimise reinvestment, maintain or reduce, and at the same time continue to gain market share.

Difficult to pinpoint, it's very clear that we had a sharper decline in June and July than we did in August and September. That's about all we can say at this point.

I will tell you that anecdotally, the response has been very strong. I'll let Grant give some additional comments, but I think for us, credit to our design team and our development team for the high quality work they're doing, and their ability to identify what's advanced in the market and what the market feels is very luxurious and aspirational, because the response has been very strong, not only in this renovation, but in other renovations we've been doing.

So we're very pleased about the progress of our capital investments and where our portfolio was headed in terms of aesthetics, design, and aspiration, and I'll turn it over to Grant.

It's still very early days, but Patrick is absolutely right. We've received very strong feedback from the customers who have experienced a new suite from a design, from a functionality. Of course, it's actually an iconic hotel suite layout that Sheldon brought to Macau. It's famous for this spacious layout. Everyone knows this room, and that presents an exciting opportunity for us, because when this is awfully upgraded and renovated and modernized, it's going to do even better than it has been doing in the last few years.

If you look at the rooms out of inventory, we had about 400 rooms out, this quarter it will increase slightly to about 500 next quarter as we continue to renovate, including the multi-bait-pies of suites, but the initial feedback from the rooms that have come back, which is around 600, has really been, I would say, surpass our initial expectations.

And you can see also that we have been managing this renovation better in terms of customer mix, and we've seen that sequential improvement in mass revenue definition versus second quarter. We will continue to manage the rest of the program, but we are very excited at the prospect of having all of these new suites back by early 2028.

I think we're really interested in buying more of our company. I think we have great assets. We're in the two best markets. We feel really strongly about the future of the Asian economic growth and wealth creation story. And so our share of purchases are focused on owning more of the great LBS assets that Sheltonville for us. We've been blessed with these assets that are in very privileged markets, very special markets with unbelievable cashmen areas and just a huge amount of investment going on around them and it's creating economic growth.

So for us, I think we're focused on owning more of LBS and not really focused on M&A.

So first off, I think both markets would benefit long-term from more high-level hospitality capacity. I think that will only help both markets grow over time. I think when you think about Macau and you realize the number of hotel rooms that are there and you realize that it's cashmen area, it is China and Hong Kong, it feels like it's under-supplied.

So from our standpoint, it's something where we have to focus on bring more high-value tourists into the Macau market over time.

The higher value segments and premium customers are out there in size, but they have to have the right experience available and know that it's there. And so it starts with great product, it starts with great service, and all the range of luxury amenities that we have. So in my mind, it's not that it's a capacity issue, it's that we have this great product, it needs to be globally competitive, our high-end customers are very sophisticated. They know great hotel rooms, they know great restaurants, they know great retail, they know great entertainment, and so we have to present all of that to be competitive.

And so for us, it's not a question about capacity being too small, it's a question about what type of capacity is there and how competitive are we globally for high-value tourists and how do we invest to ensure that those tourists choose off over anyone else whenever they think about a trip. And for a lot of these customers, it's pretty frequent.

They're very affluent, they travel a lot, they enjoy what Macau has, they love what Singapore has, and for us, it's about making sure we capture their attention and we capture their terms of dollars. And for me, it's not really a supply issue because all of the supply in Macau is not the same, all of the supply in Singapore is not the same.

Question, other than we're going to keep buying back shares, I don't think there's any interest at this time to take the company private, it's not something that we talk about. In my mind, this is a company with a lot of growth potential, we're happy to have public equity. We think it's the right way to go, we think it is allowed the public markets to ride along with us as we grow and create success over time, and we're very happy with it.

I think from our standpoint, the market is looking at us a certain way today, and we're very happy to have a person's program and take advantage of the share prices where they are today, and we'll continue to bring in our share account and share all the value. That's kind of what we're focused on.

So maybe I'll answer the questions in reverse. I think Maria Bay Sands competes with every great tourism destination in Asia. The people that come to Maria Bay Sands and come to Singapore can go anywhere, right? Their affluent, their flights all over Asia, they're choosing Maria Bay Sands because the experience we provide. We compete with everybody.

When you think about luxury, high value tourism experiences, there's a lot of different places you can go. So the reason why we keep investing and the reason we're so focused on service, on high-quality amenities, great retail, great food and beverage, great entertainment, is because we have to out-compete everybody. We have to get everyone's attention, and we have to make sure they want to come back.

And we have to do that every time they visit. So for us, we don't think about a single competitor in our market, outside of our market directly, it's everybody. We're competing with everyone all the time. And the way we win is through the investments that we've made and that we will keep making. That's why we're so focused on upgrading the facilities we have there all the time. That's what we're so focused on, are too, by adding the arena, by having entertainment as a component of what we can offer, by increasing our MICE program, or constantly remixing our retail, or constantly reinventing our food and beverage offerings.

All of these things are designed to captivate the attention of our highest value tourists and the people who come to our building. So that's kind of how we think about our positioning within Singapore and to be fair across Asia.

Oh, sure. Yeah, sorry about that. Yeah, I'll just go back to sort of the points that were made previously. We just had less visitation from our highest value patrons. That was the primary driver. You can attribute it to World Cup. You contributed to some of the other things that are out there that I'm sure everyone reads. We can't tell you which one it is. We just know that our highest value patrons visited less.

And to be fair, we did experience a little hold.

I think we talked about that just a moment ago. The market remains very competitive. We see no lead up in the reinvestment intensity. However, we also don't see any major escalation. And that's allowed us to optimize our reinvestment levels. Whilst doing that, we're still gaining market share. And we will continue to do that. We will, of course, respond if we need to, if that level of competitive changes in either direction as to what actually will help the market to moderate the levels of reinvestment. It's primarily going to be a function of market revenue growth.

But we do see that there are some indicators where different operators will be looking to fine-tune their reinvestment levels, even in the current market condition, because the profit margin of the industry is simply not where it was. So in a nutshell, nothing has really changed in the competitive intensity. We continue to gain share and optimize reinvestment if revenues make a big comeback in recovery levels, then we should see the reinvestment levels moderate naturally.

So we really appreciate the question. Our highest tiers of customers have been growing, both in Singapore and in Macau, and they're younger and they're people we've never seen before. There's been a lot of wealth creation in Asia over the last five years, and a lot of the people who are creating this wealth want to experience travel, want to experience tourism, want to experience hospitality at the highest level, they want to experience great things, and they're coming to us.

And our problem is, particularly during peak periods, we don't have enough capacity. And so, and we see that today, never mind four years from now, when this thing opens. And so our goal is to really create the best hotel that's ever been created. We hope it's the best hotel in the world. We've benchmarked against a lot of high-end properties, including our own, and our goal is to create something that includes wellness, that has a residential feel, and that feels very special and very unique in terms of its approach, in terms of its service levels.

That will allow us to have more of these high-value customers show up more frequently. If you remember, when we opened the renovation in 25, in early 25, we took our suite count up from 132 to about 770.

And that allowed us to have this step-function growth in earnings, because we were able to accommodate these high-value patrons in a way that we never did before. They are out there, and now we'll have more of that capacity. And so, in a corner like this, as I said before, I believe this was operational. We had people who didn't show up, but the good news is, they're out there.

And we have great products, we have great services. And now, with this tower coming online in a little under five years, we will have the ability to have more of them in the building with more unique experiences and take advantage of the growth and wealth creation in Asia and the experiences that these wealthy people want to have.

And I will tell you that that arena is going to be very special, because if you look at the amount of entertainment tourism that Singapore does today and the capacity of hotel rooms around us and the great infrastructure to travel from all around Southeast Asia into Singapore, we feel that being able to program that arena will be a very powerful tourism driver and a very powerful Myspace. And the good news is, depending on stage configuration, it's got about 15,000 seats. But the stage is really big, a little bit less, but that's the idea.

And so, we'll be able to put our highest value patrons in there in very special VIP areas. We'll be able to have local Singaporeans have an unbelievable music experience, and everyone in between, including our mass customers, that show up. And so, we're very excited about that as an asset that will help create high value tourism visitation, not only to our property, but also to Singapore.

Thanks for the question. From a cow, yes. The lower whole experience at the Londoner was primarily due to playing unlucky at the super high end segment of the premium mass.

And then, to be fair in Marina Bay Sands, we also experienced some negative luck factor within the non-rolling drop.

We don't have any specific comment on the tax issue. There is a confidence of many macro factors that are converging that can impact the demand levels. But I think as Patrick has referenced very, very well, there's a huge amount of demand creation through the wealth, creation and growth over the past several years. And that will continue and that will positively impact both markets. We're very confident of that. And that's why we continue to make the investments we're making in the product uplift as well as the infrastructure and the service levels of our business.

So we continue that strategy and we are very confident that the demand cycle will come through in our favor over time.