By NST Property/Sharen Kaur - December 5, 2023
KUALA LUMPUR: Genting Bhd's 52.6 per cent-owned Genting Singapore is expanding the hotel capacity at Resorts World Sentosa (RWS) by over 40 per cent in order to capitalise on the post-pandemic tourism that caused hotel room rates in the Lion City to reach all-time highs this year.
Genting Singapore intends to increase its investment at RWS by an additional S$2.3 billion.
The company began renovating RWS during the Covid-19 pandemic. Initially, it allocated S$4.5 billion to update the casino resort's non-gaming attractions and operate the Universal Studios theme park.
The budget for the project has risen to S$6.8 billion with the updated makeover plans, which will be funded using internal resources.
The additional S$2.3 billion will be used to build a new 700-room hotel and 21,243 square meters of retail space, as per preliminary approvals issued by the Urban Redevelopment Authority in the third quarter.
According to market insiders, approval of RWS' latest project coincides with a record-breaking increase in average room rates in Singapore from a year ago, of 14 per cent to 15 per cent, to S$325.24 in September, following the country's hosting of several high-profile international events, including the Formula One Singapore Grand Prix.
"The country's tourist arrival numbers are still below pre-Covid levels, with 3.86 million tourists arriving in Singapore in the third quarter of 2023 as opposed to five million in the same period in 2019
"RWS still has a lot of room to grow in terms of visitor volume," he told Business Times.
Genting Singapore reportedly said that work on the project, which will include a new waterfront sculpture created by the well-known British architectural firm Heatherwick Studio, was scheduled to begin in 2019 and be finished by 2031.
It will change the skyline of Singapore and create a colossal entrance to the new Greater Southern Waterfront precinct and RWS.
Genting Singapore is optimistic that the investment will solidify RWS' position as Asia's top travel destination and fuel the company's rapid future expansion.
Currently, RWS has 1,600 rooms spread across five hotels.
Prior to the announcement, the company disclosed that it was also renovating about 1,200 rooms at its three hotels, the Festive Hotel, the Hotel Michael and the Hard Rock Hotel Singapore.
Genting Singapore's net profit increased 59 per cent to S$216.3 million in the third quarter, driven by higher gaming and non-gaming revenues.
It is one of several companies within the vast global business empire of gaming tycoon Lim Kok Thay.
According to Forbes' list of Malaysia's 50 Richest released in May, Lim - who also owns casino resorts throughout Malaysia, the United Kingdom, the United States and the Bahamas - has a net worth of US$2.3 billion.
