Sands China mall revenue up as mainland visitors return
Sands China mall revenue rose 5.8 per cent last year as Mainland China visitor numbers rebounded.
Sands China owns The Venetian Macao, Sands Cotai Central, The Parisian Macao and The Plaza Macao shopping centres which boast a combined 1.87 million sqft of retail-mall space. They form a key part of the company’s giant gaming and resorts business in the territory, which combined posted US$8.67 billion in sales last year, up more than 14 per cent, and achieved a post-tax profit of $1.87 billion, up 17 per cent.
The company says mall revenues for the year increased 5.8 per cent overall to $507 million, compared to $479 million the previous year.
The increase was primarily driven by higher turnover fees from Shoppes at Four Seasons, Shoppes at Venetian and Shoppes at Cotai Central, and from additional retail space becoming available at Cotai Central.
The strongest-performing mall complex was the smallest of the four, The Plaza Macao, which has the 241,548sqft gross leasable area (GLA). It achieved 99 per cent occupancy with a base rent of $460 per sqft and tenant sales of $4373 per sqft, contributing $145 million in revenue, up 10.7 per cent year on year.
The weakest-performing mall was The Parisian Macao, with 89.8 per cent occupancy of its 295,915sqft GLA. Base rent per sqft was $156 and tenant sales per sqft $649. Revenue there fell 13.6 per cent year on year to just $57 million.
The company’s largest Macau property, and its first, The Venetian Macao, has 813,376sqft of GLA. It achieved total mall revenues of $233 million last year – up 6.4 per cent – with 90.3 per cent occupancy, a base rent of $263 and tenant sales of $1746.
Sands Cotai Central, with 519,681sqft GLA, achieved $69 million in revenue – up 9.5 per cent – and achieved 91.5 per cent occupancy. Base rent was $108 and tenant sales $892.
Sands China said its food and beverage revenues rose 4.1 per cent last year to $304 million, driven primarily by increased foot traffic.
Chairman Sheldon G Adelson said Macao’s development and evolution as Asia’s leading tourism destination accelerated during the year, with market-wide visitation from China reaching a record 25.2 million visits, an increase of 14 per cent compared to last year.