Good afternoon. My name is Rusty, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Las Vegas Sands First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Mr. Daniel Briggs.
Thank you. Joining me on the call today are Robert Goldstein, our President and Chief Operating Officer, and Patrick Dumont, our Executive Vice President and Chief Financial Officer. Before I turn the call over to Rob, please let me remind you that today's conference call will contain forward-looking statements that we're making under the safe harbor provision of federal securities laws. The company's actual results could differ materially from the anticipated results in those forward-looking statements. In addition, we may discuss non-GAAP measures. A definition and a reconciliation of each of these measures to the most comparable GAAP financial measures is included in the press release. Please note that we have posted supplementary earnings slides on our investor relations website. We may refer to those slides during the Q&A portion of the call.
Finally, for those who would like to participate in the question and answer session, we ask that you please respect our request to limit yourself to one question and one follow-up question, so we might allow everyone with interest an opportunity to participate. Please note that this presentation is being recorded. With that, let me please turn the call over to Rob.
Thank you, Dan. Good afternoon, everyone, and thank you for joining us today. As you know, Sheldon is still receiving medical treatment, so he will not be on the call with us today. We look forward to his recovery in due course. He did, however, want me to pass this message to everyone: amazing results this quarter, great news on Singapore expansion, and, of course, yay new developments, yay buybacks, and yay dividends. Let's turn to our financial results. We had an outstanding quarter, especially in Macao. Company-wide adjusted EBITDA was $1.45 billion USD. In Macao, adjusted EBITDA was $858 million USD, up 9% over the prior year. We achieved record mass table revenues, which reached $1.5 billion USD, an increase of 13% year-over-year. Our profitability continues to lead the industry, with EBITDA margins at 36.8%, up another 30 basis points year-over-year.
The Parisian had a record quarter, with adjusted EBITDA of $163 million US, with mass win per table growing by 21% year-over-year, aided by the introduction of our renovated suites. Next month, we celebrate the 15th anniversary of the Sands Macao opening, which marked the beginning of Macao's transformation into a world-class tourism destination for leisure and business travelers. Sheldon's vision, more than a decade ago, to create the critical mass of integrated resorts on Cotai, with hotel, entertainment, retail, and MICE facilities, positions both the market and our company for future growth. We look forward to making additional investments in Macao as we contribute to Macao's diversification and evolution into Asia's leading leisure and business tourism destination.
With the opening of the Hong Kong Zhuhai Macao bridge and the ongoing development of the Greater Bay initiatives, we truly believe Macao has the potential to become the MICE capital of Asia, we fully intend to contribute to that goal, both through our existing assets and future investments. In Singapore, MBS delivered $423 million of EBITDA. This consistent strong cash flow generation was driven by mass win, which reached nearly $5 million US per day. The iconic Marina Bay Sands Hotel continues to enjoy near full occupancy. Retail sales exceeded $1,900 per sq ft. We recently opened last week, Marquee, a Las Vegas-style nightclub that is unique in Asia. We look forward to contributions from Marquee as well as exciting new retailers in the near future.
Over the past several quarters, we have commented on our capacity constraints at Marina Bay Sands and our willingness to invest additional capital for expansion. We are very excited. We are thrilled. We recently reached an agreement with the Singapore government to invest an additional $3.3 billion to develop a new iconic hotel tower with premium suites, a state-of-the-art entertainment arena, additional MICE capacity, and other amenities, including luxury retail. Marina Bay Sands has already established itself as an iconic tourism destination. With this exciting and multi-faceted expansion, we are confident Marina Bay Sands will continue to grow Singapore's appeal as a leading leisure and business tourism destination in China.
We are truly grateful to the Singapore government for their support, as Sheldon said a few weeks ago, integrated resort development in Singapore is a tremendous example of government and private business working in tandem to maximize an opportunity that benefits all those involved. Finally, we continue to increase the rate of return, rate of capital to shareholders. We raised the annual dividend for the 2019 calendar year. We repurchased $174 million of stock in the quarter. We see meaningful long-term value in the LVS and SCL equity. Now let's take some questions.
Operator, we're ready to begin the Q&A session. Thank you.
Ladies and gentlemen, if you have questions at this time, please press star, then the number 1 on your telephone keypad. If your question has been answered or wish to remove yourself from the queue, press the pound key. Again, star 1 to ask a question. Our first question comes from the line of Joseph Greff from J.P. Morgan. Your line is open.
Good afternoon, everybody. We look forward to hearing Sheldon, hopefully soon.
We do too, Joe.
Rob, when we look backwards at the 1Q in Macao, I think what surprised us is the premium mass growth exceeded that of the base mass growth. I think that's kind of contrary to what we would expect, just given maybe perceptions of the market dynamics. Can you talk about what drove that and how much of that was the renovated suite product at The Parisian? I guess, how even was that relative growth throughout the quarter, and do you think that's sustainable?
Well, Joe, if you look in your deck, turn to page 11, I think it's the nicest slide I've seen in a long time. It illustrates our growth in both base mass and premium mass, and the numbers are just extraordinary. Almost 1,903 coming out of our tables on the premium side and 8,600 up on the mass side. This was a challenging quarter in Macao. The comps from 2018 were strong. The smoking ban obviously began this quarter. China macro concerns are out there, and VIP clearly is softening. Yet, against this backdrop, we delivered our best quarter since 2014. Our non-rolling table revenue, which you alluded to, was our best in history at $1.52 billion, with strong margins. The landscape in Macao has changed dramatically since 2014.
This is a market driven by mass and premium mass. As we said previously, we'll say again, we have the scale and the quality of rooms and suites, retail and gaming, entertainment to excel in this environment. It's just not scale for us, though. I think you have to always quality, and that's why we're building 1,300 new suites as we speak at London and Four Seasons. It's a lifestyle commitment by these customers. This complete package enables us to earn beyond our fair share in Macao. We believe the rolling market will resurrect. It has in the past, it will in the future, and we are prepared to accommodate that segment as well with our relations with the junkets, our relations with the better room quality in both the suites and the junket rooms.
I think this quarter signals our ability to perform exceptionally well in mass and premium mass, we look forward to return to the rolling market. As to where it came from, obviously, you know we've told the story about The Parisian. The Parisian, we converted 600 keys to 300, some people thought that might be a good idea, might not be. It's turning out to be a very good idea. The Parisian delivered an outstanding quarter, driven by huge growth in the premium mass business, I think it's going to continue. The truth is that this is a market that's driven by product, by quality, and by scale. We have all three. We don't want to cede control of our junket business. We don't want to give that segment up. We plan to be a player in that.
This quarter was powered, obviously, by these base mass win and premium mass win, and by better room product and better product in general. That's always been our calling card, and it will continue to be.
Great, thank you. As my follow-up question, I'm not sure this one's actually been posed to you, at least anytime recently, but maybe Patrick, you can chime in here as well. Maybe you can just give us your updated views and evolved views on M&A as a way for you guys to grow, maybe in light of what your neighbor up the street potentially did. I just want to make sure we're kind of current on how you're thinking of external growth opportunities versus what I understand and appreciate is a lot on your plate with Singapore, The Londoner, and then a newer market like Japan, potentially. If M&A is some sort of potential growth driver, under what criteria would you engage in M&A? That's all for me. Thanks.
Thanks, Joe. It's Patrick, and I think I just want to highlight something that I think we've said in some prior calls. Our highest and best use of capital is having our chairman develop new high-growth properties. So we kind of look at everything through that lens. I think as you look at the expansion in Singapore that we've been very fortunate to reach agreement on, and you look at the investment that Rob just spoke about regarding some of the new developments that we're doing in Macao, activating some old assets, as well as refreshing the SCC building into The Londoner. We think new development and renovations in very established, very positive growth markets is the best way for us to deploy capital. I think for us, it's really tough to get comfortable with an M&A opportunity, given how successful we've been doing what we've been doing.
I think it's hard to look at those opportunities and say that they're a better use of our capital than what we can do with our development capability, as well as returning capital to shareholders, either through the dividend program or through repurchases. Our focus is on developing our existing markets in Macao, which has been a tremendous market for us historically, and we believe will be even stronger in the future, as well as in Singapore, as well as in some of the new jurisdictions in Asia. That's really where we're focused. I don't think you'll see us do any M&A in the near term.
Joe, just to add to Patrick's comments, you and I have been doing this for a long time, there seems to be a lot of people who believe just buying things and selling things is valuable. We've learned over the years that buying a few things, really focusing, getting it right, and having long-term growth in markets and finding the right opportunities to have that mode approach is much more effective than just buying and selling. I think we want to grow. Singapore is evidence of that. We have a few things that we're looking at right now that I think are extraordinary opportunities for the company. It's hard to emulate Macao and Singapore and perhaps Japan. These are extraordinary opportunities.
Thank you for the thoughts.
Our next question comes on the line of Steven Grambling from Goldman Sachs. Your line is open.
Hey, thanks. I guess starting on Singapore, can you talk to the returns on invested capital there and maybe some of the specifics around the build-out and the customer you're trying to go after there, especially as I think you referenced today, VIP could be a little bit softer in Macao. Does that have spillover or does that factor into your thoughts in terms of what you're doing in Singapore?
Okay, let's take a crack at this. Marina Bay Sands has been an extraordinary story, which was authored by an outstanding government and a visionary company and founder. It's one of the greatest development stories in the history of this industry. Tourism has soared in Singapore. We've benefited as well. Steven, when we designed Marina Bay Sands about 15 years ago, and we built the usual thing at that time. We built nice suites for the high end. We built top-tier hotel rooms for everybody else. We just couldn't have imagined at that time, the incredible power of the emerging premium mass segment, and that segment is demanding, and they should be. We just delivered about 19, almost $20,000 win per table from that segment in Macau this quarter. We did it for the first time, almost $5 million at Marina Bay Sands, primarily from that segment.
That's where the growth is. This opportunity in Singapore is so much bigger than even that. I think $5 million is a nice starting point. We didn't build the right room product for this segment. We didn't give the premium mass the entertainment product they wanted. This segment wants it all. It's a lifestyle segment. With this expansion, we take dead aim at that segment. We're building 1,000 suites roughly at 1,000 sq ft roughly. This will be the best product we've ever built, bar none. It'll compete with any hotel in the world. We're building a large arena and partnering with the smartest and best entertainment people in the world to ensure week after week that Macau, excuse me, Marina Bay Sands in Singapore will become an entertainment powerhouse. We couple that with our Cotai arena in Macau.
We have synergy there. We've become an important part of any touring entertainer's plans. The synergy from Macau and Singapore is exceptional from an entertainment perspective. The target for this audience is affluent foreign tourism in Singapore. What do they want? The best suites, we'll get them. The best entertainment, check. The best retail, we already have it. We opened Marquee last week to an amazing response. This is a voracious consumer that wants it all. Marina Bay Sands will deliver it all. Along with a one-of-a-kind fifth-floor gaming salon, more slots, more ETGs. We can't fill the rooms, when we have those days, we can't fill the rooms with premium mass. The suites we sold at remarkable high rates to non-gamers. The same with the MICE space. It will enable us to achieve the highest mid-week rates we can get for our 3,500 rooms and suites.
This project will take Singapore and Marina Bay Sands to a different level, to a different gear. Our industry is product driven. Look at Cotai. Does anyone believe Macau could achieve its current success without Cotai? I was there. It was a vertical building of properties. It was all tall buildings, peninsula, small acreage, few rooms, no entertainment, no retail, no spa, no MICE. Macau has become supercharged by extraordinary product. $20,000 win per unit per day in premium mass this quarter, or $19,500. Look what happens when you bring Bruno Mars or Jackie Chan or BTS or Maroon 5 or Celine Dion to Macau. Revenues explode. In Las Vegas, entertainment drives room rate. In Macau, it drives gaming revenue. It explodes gaming revenue. This is what will happen to Marina Bay Sands. It's always about the product in our business. The market for Singapore premium mass is there. It needs to be exploited.
It needs to be given what it wants to come. In addition, let's mention our competitor, Genting, will invest I think SGD 4 billion or SGD 5 billion to create a new product to further enhance the destination. Changi Airport, already an exceptional airport, just opened another key expansion. Singapore is an extraordinary place, its growth will keep coming. The government made a wise choice to enable this to happen, we couldn't be more grateful or more excited.
Great. Changing gears to Japan, I guess. Maybe it's still too early, but how do the development projects you have underway in these other markets compare to what you think is possible in Japan? Maybe what are the puts and takes to ROIC to think about in that market?
Well, Japan is still, as you know, a ways out. We are deep into it. We're committed to it. We have a team on the ground there. I think you'll see us do something the same fashion we've done in Macau or Singapore. Our goal is we're looking at decades of investment, investing many billions of dollars. We don't go into markets and look for a cheap way to do things. Sheldon's approach has always been scale. It's been dramatic. It's design driven. It's a very special way of approaching a market. To the M&A question a few minutes ago, M&A doesn't offer the opportunities to us that Japan could or other markets could. Our commitment to Japan is immense. It will be lots and lots of rooms. Many rooms. There'll be lots of retail. There'll be lots of MICE.
Far beyond what people understand we're thinking about for Japan. The government understands that. We are fully committed to being in Osaka. We're fully committed to make a commitment to do very well there. You'll see us invest a lot of money to create extraordinary product that lasts for a long time, will get great returns as well.
Thanks. I'll jump back in the queue.
Thank you.
Our next question comes from the line of Thomas Allen from Morgan Stanley. Your line is open.
Hey, how are you? A few questions on Singapore. VIP revenues or rolling volumes were up about 5% quarter-over-quarter. Have you seen any life there? Your mass table revenue was up a lot and your slots were down. Any rationale for that dynamic?
I'll start with VIP, Tom. As you know, we're not big believers in huge growth. It's volatile. It's a market that we've always believed could grow, but it's got impediments that we find very difficult. I don't think our biggest growth opportunity will be in VIP. Could it slide to $8, $9, $10 billion one quarter? It could. Could it fall back to $6, $7 next? It could. I think we're looking basically at the playing field's stable, and that's about all. There is growth. There's real growth in the premium mass side, and we're seeing increased foreign tourism. Again, to comments on the last question, why we're committed to spending a lot of capital in Singapore. We think it's well underserved. $5 million a day is a nice number to get to.
Macau, we did $1.5 billion for the quarter, and there's just no question that we can get further there in terms of the premium mass table play. Slot capacity is constrained. We're having trouble growing it. It has grown, I think, 650 annually to 675. We have had trouble growing it. We need more slot machines. This will fix that issue, this expansion. There's no question it's one of the world's great slot ETG markets, and there's no question this will service it well. The growth is there in Singapore. Growth is there in tables and slots, more on the premium side than the rolling. Again, it's concentrated in the rolling side. It's more difficult there. Yet, the premium mass side looks like it's got vast potential from our perspective, as does the slot growth.
Helpful. Thank you. Did you change the name of The St. Regis Tower Suites to The Londoner Tower Suites? If you did, why? Did the timing of that just drop a little bit?
We did change the name. We've decided we keep The St. Regis name on the current building. They are operating very well. We decided, again, it's more of a lifestyle brand decision on our part to focus on our own brand as part of The Londoner umbrella. We're going to control 95% of the product there anyway. It won't be for sale. It'll be comped, if we're successful, 100% of the time. We felt we could do a better job controlling it that way and putting it under The Londoner umbrella. We are really enthused about what's happening in The Londoner. We feel this is going to be a very successful product, and it's going to focus, again, take dead aim at the premium mass customer in Macau. We felt we had better control by converting that back to The Londoner umbrella.
We will retain and very enthusiastic about our relationship with St. Regis on the current St. Regis hotel as part of London theming. Again, we felt we could do better, we're trying a different approach, you're exactly right. We did.
Thanks.
Yep. Thank you.
Our next question comes from the line of Shaun Kelley from Bank of America. Your line is open.
Hi, good afternoon. Rob, probably for you, maybe just stick with Sands Cotai Central. Some of the results there have been actually holding in, I think, quite strong, if not better than we expected. Could you just talk about sort of the outlook there for the property, given some of the potential disruptions as you get into some of the more aggressive renovation phases throughout this year and early next, what people should anticipate? Can you maintain some level of activity given what you're doing in the premium mass casino areas there?
Right. Sheldon's theory is people want to see it before we get rid of it, which I think is a funny theory. He said, "The more we talk about this, the more people keep coming." Again, a great quarter at Sands Cotai Central, and I think what is remarkable is that we are in the construction there, and it will worsen. I'm not prepared to define the level of disruption because I just don't know. Very candidly, I just don't know. Macau is an extraordinary place, and people seem to cope with extraordinary circumstances. We are continuing to build London rooms. They're under construction currently. The process continues. The exterior will start happening in the summer, I believe. There will be construction, and there's bound to be some disruption. I'm not prepared to quantify what that might look like. You're right, though.
The $200 million-plus quarter is kind of comical. Some people give me a hard time about that and say, "Why are you getting rid of something that could make $1 billion the current way it's growing?" I think the answer is because it's probably going to be closer to The Venetian. That building was 6,000 keys, and when we do it properly, and Shaun, we're doing it properly. Our design development group has really evolved, and the stuff we're doing is pretty special. I'm very excited to see it open and to share it with you in the investment community. It will offer more keys than any place, double The Parisian key count, more suites, more theming. It's just pretty special what's going to happen there, and we're very confident that it can grow immeasurably. We talk about the M&A question.
I don't think there's a better investment out there. We're going to invest dollar-wise on return there. You can't touch it any place in the world because it's going to do very well. I can't tell you it's going to hit The Venetian numbers. That might be a little too ambitious. It's sure going to improve a whole lot, and we're extremely enthused about it. Again, don't want to speak to disruption because I just don't know. The consumer over there thinks differently, is different. They love the room product in some of the hotels. I think the Holiday Inn conversion will mimic The Parisian. That conversion of those 1,200 keys to 600 suites is going to be an unbelievable statement. The rooms look extraordinary. We couldn't be more enthused about what's going to happen as the transition evolves.
Great. Thanks for that. As an update and a follow-up to an earlier question just on the overall market growth you saw in premium mass. Can you just give us your latest thoughts on kind of the cash comp dynamic for what you're doing with rooms? It's obviously a huge advantage for you guys given what you've got on all the product out there. Are you continuing to bump up what you're able to do on the comp side just because you see that kind of gaming demand, or just what's the latest on market environment?
I'm not sure I understand the question. Are you asking we comp more rooms to get more demand?
Yeah. Basically, are you comping more rooms to drive the premium mass side?
We'd like to comp them all, Shaun, we don't have the demand yet. We're at 55%, I believe, portfolio-wide. The truth is, there's no customer in the world that pays the kind of rates you get from a premium mass gaming customer, Our goal is to keep moving towards more and more comp rooms. That's always been the goal. We do have MICE demand midweek. Sheldon's prophecy is coming true. MICE demand suddenly pick up. The bridge is going to be a major driver. We're going to have a great problem someday in Macao. We already run the 90s, The truth is Macao needs more rooms. We have a huge competition between the segments. Cash business there is booming. Comp business is picking up. Premium mass is showing strong. MICE business is evolving. The bridge will change that.
I wish we just had 5,000, 10,000 more rooms because we could use them painfully so.
The environment there, Shaun, just to add onto that, has been very stable. In fact, on the same number of rooms we're using for comp, the cash piece of reinvestment is actually decreasing as a % of revenue, and you see this kind of growth, which is a pretty extraordinary performance by the team there.
Thank you very much.
Thank you.
Our next question comes from the line of Felicia Hendrix from Barclays. Your line is open.
Thanks a lot. You guys okay if I ask a question about Las Vegas for a second?
Sure.
Okay.
You can ask whatever you want, Felicia.
Thank you. Well, knowing it's not a big part of your business. I was wondering, especially since you guys are the first ones to report how the quarter progressed January through March, because we know that the January and February market RevPAR was strong. Clearly March, not as much given your RevPAR results. Wanted to know if you could just talk about that. Also, February was a tough baccarat month, we saw that in your numbers. Wondering if you've seen the demand for the Chinese high rollers pick up. Finally, just on this Las Vegas question, you said in the last call that you were well-positioned for group in the year. Is that still the case? Overall, like barring all this volatility, how do you think Vegas in general and your property performs for the rest of the year?
I thought it was really interesting in the deck that you said that one of the opportunities you see in Vegas is the opportunity for room pricing increases, especially when there's a lot of investors that we speak with who think it's getting more and more challenging to raise rates in Vegas.
Obviously we're different than some other people in Vegas. First of all, we have a different campus, I think that we're structurally different. When Sheldon built this place, we're the only people in town to have this kind of campus, 7,000 keys, all suites. We're in the epicenter right in the middle of what's happening in Las Vegas. We have all this convention and MICE space, which Sheldon, again, 20 years ago told people build it and some did, some didn't. We're a little bit unique. This quarter is a good quarter for us. Nothing exceptional in terms of nothing happened here on the gaming side, so we held within the range, which we hadn't been doing recently. Our baccarat business has been decent.
I think Vegas will be fine with baccarat, I wouldn't expect it to be a growth engine because honestly, as Macau gets better and better, those flights seem longer and longer, I think the Asian customers may opt to stay in Macau. When you look at our campus in Macau, it's so damn compelling what they're offering over there. I do think you're going to see a challenge to Vegas baccarat to growth potential. On the room side, we're very fortunate. We had an extraordinary rooms quarter, I think this. I know we're not saying what the rest of the industry is saying. We're seeing strong group demand. We're seeing strong FIT weekend. I think George and the team here has done an exemplary job of maintaining rate and margin. I think, again, we're a little bit different than other people in town.
We have a very strong room product. We're underpinned by convention and MICE space. We have strong FIT demand. This quarter was just a good quarter because we held within the range. The rates were strong. RevPARs were strong. We may or may not be indicative of. I wouldn't call us a barometer, though, for the Strip. I can't speak to other people. Again, our product is very top tier. We're very happy with our Vegas business. If we can keep having $125 million, $135 million quarters, it'll be a very nice year for us, I think we will feel good about it. From our perspective, Vegas is just fine.
Okay.
It's Patrick. One other thing about Vegas, I think we're a firm believer that if you reinvest in high-quality product, you'll be able to drive value and drive returns, that speaks through the ADR. If you look at what we did in the last quarter, our ADR was up 2.3%. Incrementally, if we keep doing that, eventually over time we'll head in the right direction, assuming our investments continue, right? We've done a lot to reinvest in the campus here. As Rob mentioned, we have an unbelievable asset hopefully coming online in a few years with the Sphere that's being done with Madison Square Garden, one of the leading entertainment companies in the world, as you know. We think our trajectory for Vegas is actually incredibly positive. We like the expansion and some of the development that's going on around us. We think that'll help us.
The retail has been performing well in the building. There's a lot of things that are now firing on all cylinders with George Markantonis following Sheldon's original vision. The critical mass does work. Our ADR is just visibility into the success of the overall property. I think one thing that you'll see in the future is that our convention business will continue to grow, but our FIT business will continue to be powerful as we get additional amenities online. That's why we have this view, and we'll continue to deploy capital against this asset because it's a great asset.
One thing I would add, Patrick made two points I want to just articulate further. I should have referenced the Sphere, which I think is a game changer for our building. I apologize I missed that. Sorry, Jim Dolan. Sorry, MSG. It's going to be a very different place in a couple of years when the Sphere gets open as far as entertainment and driving ADR. Second thing, I think what's important is Vegas is, as you know, CapEx strong. You've got to invest dollars to stay in the game. You look around this town. I visited the Palms recently, extraordinary what the Fertittas have done at the Palms. You walk through these buildings, you've got to have an appetite for excessive CapEx to stay in the game. We've done that. We've invested heavily in Vegas, and to Patrick's point, it paid off.
It's not a town you can let things erode or you will erode quickly. We've reinvested over the years, and we keep reinvesting, that's a key part of our strategy here to stay current.
Thank you. That's really helpful. Then just kind of switching gears to your retail business in Macau. All those sales per square foot numbers continue to be helpful. Appreciate it. Not sure if we make anything of it. There was a slight decline from the TTM fourth quarter to now the first quarter. Just wondering if there's anything to read into that, especially given China macro, or if it's just, I don't know, really nothing.
I think you're referring to page 34 and 35 in our deck.
Yep.
If you kind of look at the performance in Macau, we're very proud of these malls. We don't think there's any issue with global macro. I don't think you'll see malls anywhere in the world grow like this, and if there are some, just point them out to us. We think this retail story in Macau is extraordinary. We think it speaks to Sheldon's original vision of building critical mass of retail, of MICE, of entertainment, and bringing high-value customers into beautiful premium mass suites, really driving this retail experience. These revenue numbers, we think, will continue to expand over time as we continue to remix tenants, as we invest more in the malls, as the London Mall opens up refreshed, and as we get some other remixing done. We'll start to see additional upward pressure on our revenues as well as on our rent roll.
We're very pleased about the Macau story. I think Rob has some comments as well, but this is really just another example of the critical mass story that Sheldon authored. We're very proud of the offerings that we have there, including the tenant mix, which we think is unique to shopping experiences throughout Asia and the world.
Yeah. I'm going to add to that was, our retail malls, although they make a lot of money, obviously as demonstrated by these sales per square foot, they are part of the overall lifestyle package that makes this property and all these properties in Macau and Singapore so compelling to consumers. You walk through the Four Seasons, you walk through these very high-end, high street stores full of very chic people, dressed very well, buying with both hands. They're packed to the gills, Venetian. Honestly, it's an extraordinary part of what we do, and we already have that piece in Singapore. As you see, $1,900 a foot there. Venetian, which is not necessarily the highest end of the market, doing $1,700 a foot. Obviously luxury at Four Seasons, $6,000. Crazy numbers. The point is, these numbers won't go down.
They're going to keep growing, it's part of our story, the whole feeling of the lifestyle that you get in Macau. If you haven't walked through it recently, you should, because the quality of merchandising that we've achieved, the quality consumer, and the way that fits in with all that. When you go there and you watch these entertainment packages sell out on weekends, packed in the malls, it's all part of the approach where gambling is obviously critical in Macau, but we're selling lifestyle over there, and it's an essential part of who we are. I don't think it's going to diminish. I think it's going to keep growing, both in Singapore and Macau.
Great. Thanks so much.
Our next question comes from the line of Anil Daswani from Citigroup. Your line is open.
Thanks, good morning. My first question is on Marina Bay Sands. Could you comment a little bit on the timelines of when you expect the project to be able to open? Also, could you give us some more color on the option for the additional 2,000 sq ft of gaming area? Will that be focused on premium mass rooms in the new tower, or are you going to focus everything on the existing casino?
Hey, it's Patrick. Thanks very much for the question. I think there's two things to think about. I think there's a lot of work to be done on the front end. This is a very significant investment and a very meaningful project for Singapore. Like the initial Marina Bay Sands development, there's going to be a lot of review. Our goal is to have this thing open as quickly as possible. Our chairman's view is that everything should be open as quickly as The Venetian, which I think was 18 months. Is that right?
Yeah.
We're going to do our best. As a practical matter, on page 16, we have a CapEx slide that you can see where we kind of laid out our preliminary views based on our development team's initial works. I think we're looking to open this thing by the end of 2023, although hopefully we'll be able to get it sooner. For those of you who remember, the initial Marina Bay Sands development had some interesting in-ground issues related to water, sand, mud, and a whole bunch of other things. Hopefully we've learned from that and we can move a little more quickly. We like to believe that this is something that by 2023, we're open and trading. Sorry, what was the second part of the question?
The gaming piece.
Oh, the gaming piece. Sorry. Excuse me. The gaming piece. All of the benefits associated with this development that we may receive are dependent on us achieving certain milestones. This is something that, in effect, when we do the development and complete these milestones, we'll have the ability to access some of these benefits to the gaming.
Okay. As a follow-up on the premium mass player that we've been seeing and the strong growth that you guys have been experiencing in premium mass in Macau, could you comment on whether it's bet size or the sheer number of players that are driving this business for you guys?
Hmm. Interesting question. I don't know the answer off the top of my head. For sure it's more players showing up. That's a given. I'm not sure it's bet size as much as it's just a lot more people showing up. Again, I think it's about where you sleep times where you gamble. Since we have most of the better rooms in scale in Macau, be it the Four Seasons or at The Venetian, now at The Parisian, you tend to get the lion's share of wallet when you've got the suite they want to stay in. They may wander off to another campus, the truth is, in our buildings, they have the shows they want, they have the food they want, they have the retail they want, they have the spa they want.
We get an outsized wallet share, I think visitation is up on that premium mass segment. There's no question it's growing. I don't think it's bet size. I'd have to ask Grant Chum that question in detail, I think it's more about the amount of customers showing up, they're sure showing up. Again, $1.5 billion this quarter. It's just a spectacular number when you think about the margins against that segment. We were built for this segment, this segment is coming on strong.
Thank you for taking my questions.
Thank you.
Our next question comes from the line of Robin Farley from UBS. The line is open.
Hi. Thank you. This is actually Arpine on behalf of Robin. What is your view on Macau VIP, and particularly on Q1 VIP declines? Do you feel like that was trade related, trade war related, and do you see that improving as you look into Q2 in terms of overall market declines?
I think the numbers speak for themselves. It was a decline, it'd be foolish to guess exactly why. Is it macro? Is it China macro? Is it trade war? I think that'd be silly to opine on something I don't have real visibility into. I want to tell you, though, that having been in Macau for a long time, I can promise you VIP will resurrect, and it's still an important segment. It trades in tandem with the very highest end of the premium mass market, the super premium mass. Probably trades in sympathy with those kinds of people. I think we believe VIP is worth investing in. We're doing that right now. We believe it will come back. This quarter was obviously disappointing for the market in terms of decline.
Again, I don't want to speculate on whether it's the economy, whether it's the smoking, whether it's the trade war. I just don't know the answer to that. What I do know is it will come back, and I do know we're going to invest heavily, want to get our fair share, because we think it's an important segment to be in. We think our products are made for it, and we think our new VIP rooms and our better relationships will enhance our ability to get more of that share when it comes back. That's the best I can tell you. The market speaks for itself, and you draw your own conclusions based on the catalyst for the decline.
Thank you very much.
Sure.
Again, ladies and gentlemen, if you have a question at this time, please press star, then the number 1 on your telephone keypad. Our next question from the line of David Katz from Jefferies. Your line is open.
Hi. Afternoon, everyone, congrats on a good quarter.
Thank you.
I wanted to just ask about your impressions of the economic context or the economic backdrop in China and how that's playing into the Macau business. Having made a recent visit, having heard some of the commentary and seen what the numbers today are, how are you thinking about the rest of the year?
Well, we're not experts in the economy, and I think, again, we're remiss to talk about how we view a huge nation. I will tell you, again, tourism and premium mass appears to be outbound tourism is strong. The premium mass play into the town is strong. Base mass is just fine. We don't try to pretend to understand the macroeconomic climate in China and give an opinion on that because there's so many different points of view, and it changes so rapidly. I will tell you that I think, again, Macau is showing real strength as evidenced by our numbers, and all I can point to is our success. I can't see the other people's numbers, how they did. Our premium mass, base mass, and demand for rooms is very strong. It's excellent, and it's evidenced by the $858 million quarter.
That's all we look as how we see it. It's a day-by-day, week-by-week thing to sit there and monitor the market. We don't pretend to know what's going to happen six months from now. We don't know what the impact will be if the trade war is resolved. We just don't know the answer to that. All we do is run our business, look at outbound tourism. It's strong in Macau, it's strong in our buildings, and I'll stop with that comment.
You said it. My follow-up is, under what circumstances, are there any circumstances where you would consider pursuing any growth or development in Las Vegas?
Well, hey, it's Patrick. I think we spoke about this a little bit in a prior question. We're investing heavily in Las Vegas. We spend hundreds of millions of dollars of CapEx in room refresh, in casino refresh, in redoing our restaurants and entertainment spaces. We feel very strongly about the trajectory of Las Vegas and the potential, particularly with some of the investments we have coming in, as we mentioned, and as Rob mentioned, the MSG Sphere, which is going to be the most technologically advanced arena in the world from what we can see. It's going to be an absolutely stunning investment. It's something completely unique, like a must-see globally. We're very excited about this stuff. We continuously reinvest in Las Vegas to improve our offerings because it's competitive out there.
I don't know that we're interested in doing a ground-up development because we have such a great asset base already where we sit. That's kind of how we're thinking about it today. I don't know, Rob, if you have any other comments.
I think to Patrick's point, the returns here, this is a lodging-based market. Let's not look otherwise. It's a great place to live and work, and our buildings here perform very well. The problem for us, David, is the returns outside here is far greater. I think this Singapore project is going to be extraordinary. If we get it right, it's going to shock a few people. Over the years, we've made some pretty good bets over the years in Macau and Singapore. This one, I think, is going to be a very good investment and going to surprise a lot of people. Obviously, Macau the same way. We're deep into this Osaka situation.
We have a few other jurisdictions we're looking at, which we won't tell you which they are, but we are always looking. The problem is Las Vegas doesn't have the returns that we get other markets, except our own building. As Patrick alluded to, we'll invest heavily in The Venetian and The Palazzo. We are making some very large bets in this building to make it better, improve it, and stay current. I don't foresee us investing in Las Vegas because the other things out there in the rest of the jurisdictions are so much better in terms of return on our investment. Again, Singapore is a very large bet, but it's also a great investment.
Thank you very much. Appreciate it.
Sure.
Our last question from the line of Jared Shojaian from Wolfe Research. Your line is open.
Hey everybody, thanks for taking my question.
Sure.
Can you just talk about hold on the mass side? Obviously, VIP was above the range, but it seems like your non-rolling chip win rates were a bit higher than normal too. Anything different operationally or that you saw in terms of play, or do you think this was simply just holding better on the luck side?
Well, we held within the range. I think I would say that is, we held within the range. Let's begin there. We held the high end of the range, but within the range. Again, that's just one indicator. Drop is one indicator, not a perfect one, of volume. The base mass business and premium mass business is growing very strong. The weakness in the non-rolling business resides at the super premium mass, again, which trades kind of in tandem, in sympathy with the junket segment. All I'd say is we didn't hold outside the range, which is good. If we only can make $6 billion this year in non-rolling win, I'll be happy. I'll leave it there. It's not an exceptional result.
When we hold 2021, we don't call it out and say, "Gee, we held two point low end of the range." You could make an argument that premium mass helps this, we sure get our fair share of really high-end premium mass play, lots of it, perhaps that helped this quarter, it could be down next quarter. When it's all said and done, it's a non-event. It's not going to matter at the end of the day. A $1.52 billion result in non-rolling tables is just a great quarter with margins to match. We're very pleased.
All right, thank you. Just switching over to Singapore again. Can you give us some sense as to what % of your GGR is, I guess, coming from guests that are exposed to the entry fee? In the near term, puts and takes, obviously, you have the higher entry fee, you get the additional slots later this year. How are you thinking about Singapore in terms of the 2020 net impact? Is it EBITDA positive, neutral, negative versus what you were thinking before the announcement?
We don't really get into the details about splits of EBITDA from locals. I think the key thing here is this is a great investment for us and a tremendous investment for Singapore. We worked very closely with Singapore to establish the program and to decide exactly how to do this. I know that our other co-concessionaire did as well. This is a massive amount of foreign direct investment going into Singapore that's going to fundamentally allow for a step function in growth in leisure and business tourism. This was a very big deal for us and a very big deal for Singapore. We're very proud and very lucky to be able to do this. I think in our minds, this is something that over time will be a very favorable long-term investment.
We don't know the timing of everything yet, so it's hard to answer your question about cash flows, but we take a very long-term view. Over the next 30 years, this is going to be a great investment for us and a great investment for Singapore, just as the original Marina Bay Sands building was as well. I think on page 27, we kind of lay out the investment case for Singapore a little bit. We have a couple of slides where we show the growth in tourism. We talk about some of the investment that Singapore is making in Changi Airport, how that infrastructure addition is going to help tourism growth. Just, we address some of the themes around why the IR expansion will deliver what we all hope will deliver. We're very focused on this arena. We have great success with our arena in Macau.
It's something that we feel like LVS will be the Asian leader in live entertainment with the ability to program these two great venues. We think it'll be something that will really benefit Singapore and benefit us, both from the desirability of our resort as well as our ability to fill our hotel rooms. From our standpoint, it's hard for me to answer your question, what's going to happen timing and cash flows, because we're not really that close yet. What I can tell you, the long-term thesis is a strong one. We're very enthusiastic about this investment. We feel it's a great one for the company. It'll produce good returns as well as the fact that it will enhance the overall attractiveness of the Marina Bay Sands asset as well as drive additional leisure and business tourism to Singapore.
From our standpoint, this was tremendous, and we're very proud about it. We're very excited to do it. I can't give you specifics about exactly the timing of cash flows for the slot machines or entry or tax increases because we're not there yet.
One thing I would add to Patrick Dumont's comments, though, to answer your question about local versus foreign. It's clear when you build 1,000 sq ft suites and you build this kind of arena, you're focusing on foreign tourism. The growth here will come from premium mass people outside of Singapore. That's where the growth resides. It's all those people in countries around Singapore. That's why we're building this thing. If we didn't see that kind of growth, we wouldn't build all these keys and build this arena. We believe there's so many drivers of profitability from the ADR, from the gaming side, from the retail side. It's a wonderful opportunity. Again, the laser focus is premium mass foreign tourism.
All right. Thank you very much.
This concludes today's conference call. Thank you for joining. You may all disconnect. Have a wonderful day.