As part of the effort, the company released preliminary first quarter results for its Las Vegas operations. When compared to the first quarter of 2006, the owner of the Venetian and the Sands Expo convention complex says its casino revenues increased approximately 24% to $120 million, its hotel revenues increased 7% to approximately $96 million, its food and beverage revenues fell approximately 8% to $40 million and its retail and other operating revenues rose 20% to approximately $41 million.
With regard to its hotel performance, the company says the Venetian's average daily rate increased approximately 10.8% to $276 and its occupancy of available guest rooms –- it is remodeling rooms in conjunction with the development of its integrated Palazzo complex--remained at 99%. RevPAR rose 10% to $273.
On a GAAP basis, Sands Corp. says operating income from its Las Vegas operations is expected to be in the range of $86 million to $91 million in the first quarter of 2007, versus $79.3 million in the same 2006 period. Adjusted property EBITDAR for its Las Vegas operations is expected to be in the range of $107 million to $112 million in the first quarter of 2007, compared to $101.1 million for the first quarter of 2006. The increase in EBITDAR, largely the result of a higher than expected table games hold percentage, was substantially offset by an elevated provision for bad debt, according to the company.
Las Vegas Sands president William Weidner says the increase in room rates and RevPAR is being driven by the company's convention-based strategy while its "increasingly important" high-end business is benefiting from the company's investments in the infrastructure and amenities, such as its new Palazzo complex, which will open later this year. The Venetian, the Sands Expo and the Palazzo taken together represent the largest integrated destination resort in the world, with over 7,000 hotel rooms and 2.3 million sf of meeting, convention and exhibition space.
In addition to its Vegas operations, Las Vegas Sands owns the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macao. It also developing several properties on the Cotai Strip in Macau and has three integrated resorts currently under construction outside of Las Vegas: The Venetian Macao Resort-Hotel in Macao; Sands Bethworks in Bethlehem, PA; and The Marina Bay Sands in Singapore.
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