LVS Abandons Osaka and Switches Focus to Tokyo and Yokohama for IR

Although putting plenty of efforts to beat MGM Resorts International, Las Vegas Sands has suddenly abandoned its previous plans of pursuing an integrated resort within Osaka. Instead, the company has stated that its future outlook is focused on development opportunities in both Tokyo and Yokohama.

The surprising decision comes after the company made several concerted moves to gain an advantageous position regarding its previous ambitions for the city. This also includes the speculations that the corporation will be talking up the port city as an IR destination. However, LVS’ withdrawal from the region leaves MGM as a clear favorite.

Targeting New Regions

For the past several years, bid for other locations.

As Sheldon Adelson, LVS’ chairman and CEO explains:

“Consistent with our long-held strategy and our track record of success in achieving it, our company will drive organic growth by strongly reinvesting in our existing portfolio of properties in Macao, Singapore and Las Vegas, reward our shareholders through our dividend and share repurchase programs and target new development opportunities that allow us to maintain our industry-leading returns on invested capital – and we think an investment in Tokyo or Yokohama gives us the best opportunity to do exactly that.”

IRs to Welcome 2025 World Expo- Dream or Reality?

The beginning of June…

…brought plenty of uncertainty regarding the opening of the resorts in time for 2025 World Expo. Osaka, which will be hosting this globally significant grandiose event, sees time as the biggest enemy, as there are many procedures to be completed until the Expo.

Some government-issued delays from earlier this year are the main reason why the realization of the plan remains uncertain. The analysts claim that the idea is simply unachievable, mostly because the time frame left for granting the licenses is too short.

MGM Strengthens the Position

In the meantime, MGM will continue deepening its footprint, particularly now that LVS decided to switch focus to Yokohama and Tokyo. As a part of the thorough strategy, the company built an office in Osaka, ing the idea of integrated resorts.

Besides this…

…the corporation entered a successful agreement with Orix Corp, a financial service group for Japan. The two brands formed a consortium for the Osaka bid, aiming to boost the chances to bring the IR concept to life.

Source:

“LVS dumps Osaka in favor of Tokyo or Yokohama IR”, casinobeats.com, August 22, 2019.