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Resorts World Sentosa (RWS), Singapore’s second integrated resort, faces another challenging quarter as reduced hotel capacity and softer VIP demand dampen earnings, according to Nomura analysts. The Genting Singapore property is projected to post Q1 2025 revenue of SG$650 million ($494 million) and EBITDA of SG$250 million ($190 million), lagging behind rival Marina Bay Sands (MBS) amid a stalled recovery for Southeast Asia’s leisure sector.
The Room Inventory Squeeze
RWS’s operational headwinds stem largely from a 27% reduction in available hotel rooms compared to early 2024, with 1,200 rooms operational in Q1 versus 1,540 pre-renovation. Fresh from completing its $1.8 billion overhaul—boasts 1,844 rooms and a 95.6% occupancy rate. The disparity underscores RWS’s temporary disadvantage in capturing high-spending tourists, particularly premium mass visitors who contributed 45% of Genting’s 2024 gaming revenue.
Nomura analysts note RWS’s VIP rolling chip volume remains depressed, with Q1 volumes trailing 2024 levels due to macroeconomic uncertainties and tighter credit policies across Asia. The property’s hold rate, which peaked at 4.62% in Q1 2024, is expected to normalize downward, further pressuring margins.
The MBS Contrast
While RWS struggles, Las Vegas Sands’ Marina Bay Sands reported steady Q1 revenue of $1.2 billion, buoyed by new suite offerings and a 52% EBITDA margin. MBS’s success highlights the bifurcation in Singapore’s IR market:
- VIP Resilience: MBS maintained stable rolling chip volume at $8 billion, despite a slight 2.6% YoY dip, while RWS’s VIP segment grapples with reduced liquidity from Chinese high rollers.
- Non-Gaming Edge: MBS’s revamped convention space and luxury retail drove 2.4% YoY room revenue growth, whereas RWS’s entertainment offerings remain in flux during renovations.
This divergence positions MBS to capture 68% of Singapore’s IR market share in Q1, up from 63% in 2024, according to CGS-CIMB estimates.
The RWS 2.0 Lifeline: Betting on Late 2025 Revival
Genting Singapore pins recovery hopes on its SG$4.5 billion RWS 2.0 expansion, set to debut Minion Land, an upgraded oceanarium, and a luxury all-suite hotel in H2 2025. These attractions target family tourists and premium travelers, a segment that spent 22% more per visit at Universal Studios Singapore in 2024.
However, the timeline risks missing Singapore’s peak summer travel window. Nomura warns the delayed openings could leave RWS vulnerable through Q3, with meaningful EBITDA impact delayed until 2026.
The Path Forward
RWS’s strategy hinges on successful premiumization. The upcoming The Singapore Oceanarium—a 12-hectare marine attraction—aims to boost non-gaming revenue to 40% of total income by 2026, up from 33% in 2024. Yet, this requires flawless execution in a market where MBS’s new $3.8 billion loan facility signals aggressive reinvestment.
The Bottom Line
Resorts World Sentosa’s Q1 struggles underscore the perils of simultaneous renovation and operation in Asia’s cutthroat IR landscape. While MBS leverages its completed transformation to cement market leadership, RWS remains in transitional purgatory-caught between fading old attractions and unfinished new draws.
The coming months will test Genting Singapore’s ability to weather this liminal phase. For investors, the question remains whether 2025’s pain will pave the way for 2026’s gain, or if the competition will simply sprint further ahead.
Source: Inside Asian Gaming (IAG)
