Las Vegas Sands Corp.: a High-Risk, High-Return Strategy?

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Las Vegas Sands Corp.: a High-Risk, High-Return Strategy?

By | April 2013
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Q5. Case Study Systematic analysis & logical reasoning will be given due weightage. Las Vegas Sands Corp.: A High-Risk, High-Return Strategy?

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On August 28, 2007, Venetian Macau Ltd. (VML), a subsidiary of Las Vegas Sands Corp. (LVSC), a hotel, gaming and resort development company headquartered in Las Vegas, inaugurated the first phase of The Venetian Macau, claimed to be the world's largest casino-resort, in Macau (also known as Macao), a special administrative region (SAR) in the People's Republic of China (PRC). The casino at the resort had 870 gaming tables and 3,400 slot machines. Apart from the casino, the US$ 2.4 billion resort, built on The Cotai Strip, a reclaimed portion of land that connected Macau's islands of Taipa and Coloane, housed 3,000 hotel rooms, a theater, a 15,000-seat sport stadium, and 350 shops. 1

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The second phase of the project was to include a 6,000 seat banquet hall, and was scheduled to be completed by 2008. Sheldon Adelson (Adelson), Chairman and Chief Executive Officer of Sands, said at the inauguration that it had been his dream to "reproduce the capital of entertainment [Las Vegas] in Asia for Asians."3 According to newspaper reports, The Venetian Macau attracted more than 500,000 visitors in its first week. By 2007, LVSC, incorporated in 2003, had grown to become one of the world's largest casino developer-cum-operators. It was one of the most successful casinoresort operators on the Las Vegas Strip4 and now with the inauguration of The Venetian Macau, its second casino-resort in Macau, it had strengthened its position in what the company believed was the future entertainment capital of the world. The company had committed more than US$ 12 billion toward projects in Macau, with most of them scheduled to be complete by...