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LAS VEGAS SANDS CORP (LVS) Q1 2019 Earnings Call Transcript

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LAS VEGAS SANDS CORP  (NYSE: LVS)
Q1 2019 Earnings Call
April 17, 2019, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Rusty and I'll be your conference operator today. At this time, I would like to welcome everyone to the Las Vegas Sands Corp. First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

I would now like to turn the call over to Mr. Daniel Briggs.

Daniel Briggs -- Senior Vice President, Investor Relations

Thank you. Joining me on the call today are Rob Goldstein, our President and Chief Operating Officer; and Patrick Dumont, our Executive Vice President and Chief Financial Officer. Before I turn the call over to Rob, please let me remind you that today's conference call will contain forward-looking statements that we're making under the Safe Harbor provision of Federal Securities Laws.

The company's actual results could differ materially from the anticipated results in those forward-looking statements. In addition, we may discuss non-GAAP measures, a definition and a reconciliation of each of these measures to the most comparable GAAP financial measures is included in the press release.

Please note that we have posted supplementary earnings slides in our Investor Relations' website. We may refer to those slides during the Q&A portion of the call. Finally, for those who would like to participate in the question-and-answer session, we ask that you please respect our request to limit yourself to one question and one follow-up question so we might allow everyone with interest an opportunity to participate. Please note that this presentation is being recorded.

With that, let me please turn the call over to Rob.

Robert G. Goldstein -- President and Chief Operating Officer

Thank you, Dan. Good afternoon, everyone and thank you for joining us today. As you know, Sheldon is still receiving medical treatment. So he will not be on the call with us today, but we look forward to his recovery in due course. He did however want me to pass this message to everyone, amazing results this quarter, great news on Singapore expansion, of course, yay new developments, yay buybacks and yay dividends.

Let's turn to our financial results. We had an outstanding quarter especially in the Macao, Companywide adjusted EBITDA was $1.45 billion. In Macao, adjusted EBITDA was the $858 million, up 9% over the prior year. We achieved record mass table revenues, which reached $1.5 billion, an increase of 13% year-on-year. Our profitability continues to lead the industry with EBITDA margins of 36.8%, up another 30 basis points year-on-year.

The Parisian had a record quarter with adjusted EBITDA of $163 million with mass win per table growing by 21% year-on-year, aided by the introduction of our renovated suites. Next month, we celebrate the 15th anniversary of the Sands Macao opening, which marked the beginning in Macao's transformation into a world-class tourism destination for leisure and business travelers. Sheldon's vision more than decade ago to create the critical mass of integrated resorts in Cotai with hotel, entertainment retail and MICE facilities positions both the market and our Company for future growth.

We look forward to making additional investments in Macao as we contribute to Macao's diversification and evolution in the Asia's leading leisure and business tourism destination. With the opening of the Hong Kong Zhuhai and Macao Bridge and the ongoing development of the Greater Bay initiatives, which we believe, Macao has the potential to become the MICE cap of the Asia and we fully intend to contribute to that goal, both through our existing assets and future investments.

In Singapore, MBS delivered $423 million of EBITDA, this is -- this consistent strong cash flow generation was driven by mass win which reached nearly $5 million per day. The iconic Marina Bay Sands Hotel continues to enjoy near full occupancy, retail sales -- exceeded $1,900 per square foot and we recently opened last week Marquee, in Las Vegas, our Nightclub is unique in Asia before the contributions from Marquee as well as exciting new retailers in the near future.

Over the past several quarters, we have commented on our capacity constraints at Marina Bay Sands and our willingness to invest additional capital for expansion. We are very excited. We are thrilled. We recently reached an agreement with the Singapore government to invest an additional $3.3 billion to develop a new iconic hotel tower -- excuse me, with premium suites, a state-of-the-art entertainment arena, additional MICE capacity and other amenities including luxury retail.

Marina Bay Sands has already established itself as an iconic tourism destination. With this exciting and multi-fast expansion, we are confident Marina Bay Sands will continue to grow Singapore's appeal as a leading leisure and business tourism destination in China. We are truly grateful to the Singapore government for their support and as Sheldon said a few weeks ago, integrated resort development in Singapore is a tremendous example of government and private business working in tandem to maximize an opportunity that benefits all those involved.

Finally, we continue to increase the rate of return, rate of capital to shareholders. We raised the annual dividend for the 2019 calendar year, we repurchased the $174 million of stock during the quarter. We see meaningful long-term value at the LVS and SCL equity. We thank you for joining us today and now, let's take some questions.

Daniel Briggs -- Senior Vice President, Investor Relations

Operator, we're ready to begin the Q&A session. Thank you.

Questions and Answers:

Operator

(Operator Instructions) Our first question comes from the line of Joe Greff from JPMorgan. Your line is open.

Joseph Greff -- JPMorgan -- Analyst

Good afternoon, everybody. We look forward to hearing Sheldon hopefully soon.

Robert G. Goldstein -- President and Chief Operating Officer

We do too, Jeff.

Joseph Greff -- JPMorgan -- Analyst

Rob, when we look backwards at the 1Q in Macao, I think what surprised us is the premium mass growth exceeded that of the base mass growth, I think that's kind of contrary what we would expect just given maybe perception of the market dynamics. Can you talk about what drove that and how much of that was the renovated three products that the Parisian, I guess how even was that relative growth throughout the quarter and do you think that's sustainable?

Robert G. Goldstein -- President and Chief Operating Officer

Well, Joe if you look in your deck page, turn to page 11, I think it's the nicest slide I've seen in a long time. It illustrates our growth in both base mass and premium mass and the numbers are just extraordinary almost $19.3 million coming out of our tables from the premium side and $8,600 million in the mass side. This was a challenging quarter in Macao. The comps from 2018 were strong. The smoking ban obviously began this quarter. China macro concerns are out there and VIP clearly is softening. And yet against this backdrop, we delivered our best quarter since of 2014 and our non-rolling table revenue which you alluded to was our best in history at $1.52 billion with strong margins.

The landscape in Macao has changed dramatically since 2014. This is a market driven by mass and premium mass and as we said previously, it will say again, we have the scale and the quality of rooms and suites, retail and gaming, entertainment to excel in this environment. It's just not scale first, I think you have to realize this quality and that's why we're building 1,300 new suites as we speak, at Londoner and Four Seasons. It's the lifestyle commitment by these customers. This complete package enables us to earn beyond our fair share at Macao. We believe the growing market will resurrect where it has in the past, it will in the future and we are prepared to accommodate that segment as well with our relations with the junkets, our relations with the better room quality in both the suites and the junket rooms. But I think this quarter signals our ability to perform exceptionally well in mass and premium mass and we look forward to return the rolling market.

As to where it came from, obviously you know we've told the story about the Parisian and the Parisian converted 600 keys to 300 and some people thought that was might be a good idea and might not be, trying to be a very good idea, the Parisian delivered an outstanding quarter driven by huge growth in the premium mass business and I think it's going to continue. The truth is that, this is a market that's driven by product, by quality and by scale we have all three. And we don't want to see control our junket business. We don't give that segment up. We plan to be a player in that. But this quarter was powered obviously by these base mass win and premium mass win and by better room product and better product in general. And that's always been our calling card and it will continue to be.

Joseph Greff -- JPMorgan -- Analyst

Great, thank you. And then as my follow-up question, I'm not sure this one actually been put (ph) you at least anytime recently, but maybe, Patrick, you can chime in here as well, maybe you can just give us up your updated views and Bob views on M&A as a way for you guys to grow maybe in light of what your neighbor of Street potentially did I just want to make sure we're kind of current on how you're thinking of external growth opportunities first, what I understand and appreciate is a lot on your plate with the Singapore, the Londoner and then a newer market like Japan, potentially. And then if M&A is some sort of potential growth driver under what criteria -- would you engage in M&A, and that's all from me. Thanks.

Patrick Dumont -- Executive Vice President and Chief Financial Officer

Thanks, Joe, it's Patrick and I think I just want to highlight something that I think we've said in some prior calls, our highest and best use of capital is having our Chairman developed new high-growth properties. And so we kind of look at everything through that lens. And I think as you look at the expansion in Singapore that we've been very fortunate to reach agreement on and you look at the investment that Rob just spoke about regarding some of the new developments that we're doing in Macao, activating some old assets as well as refreshing the SEC building into the Londoner.

We think new development and renovations in very established, very positive growth market is the best way for us to deploy capital. I think for us it's really tough to get comfortable with an M&A opportunity given how successful we've been, doing what we've been doing. I think it's hard to look at those opportunities and say that there are better use of our capital than what we can do with our development capability as well as returning capital to shareholders either through the dividend program or through repurchases.

So our focus is on developing on our existing markets in Macao, which has been a tremendous market for us historically. And we believe we'll be even stronger in the future as well as in Singapore, as well as in some of the new jurisdictions in Asia. So that's really where we're focused. I don't think you'll see us do -- M&A in the near-term.

Robert G. Goldstein -- President and Chief Operating Officer

Joe, just to add to Patrick's comments, you even I've been doing this for a long time, but there seems to be a lot of people who are just buying things and selling things is valuable we've learned over the years that buying a few things we focus and getting it right and having long-term growth in markets and find the right opportunities that have that load approach is much more effective than just buying and selling. I think we want to grow. Singapore is evidence of that. We have a few things that we're looking at right now that I think are extraordinary opportunities to the Company, but it's hard to emulate Macao and Singapore and perhaps (inaudible) and these are extraordinary opportunities.

Joseph Greff -- JPMorgan -- Analyst

Thank you for the thoughts.

Operator

Our next question comes from the line of Stephen Grambling from Goldman Sachs. Your line is open.

Stephen Grambling -- Goldman Sachs & Company -- Analyst

Hey, thanks. I guess starting on Singapore. Can you talk to the returns on invested capital there and maybe some of the specifics around the build out and the customer you're trying to go after there, especially as I think you referenced a VIP could be a little bit softer in Macao, does that have spillover of any -- does that factor into your thoughts in terms of what you're doing in Singapore?

Robert G. Goldstein -- President and Chief Operating Officer

Okay. Let's take a crack at this. MBS has been an extraordinary story, which is altered by an outstanding government and the visionary Company and Founder. It's one of the greatest development stories in history of this industry and tourism has -- tourism has sought in Singapore, and we benefit as well. But, Steve when designed MBS about 15 years ago and we built the usual thing at that time and built nice suites at the high-end we built top tier hotel rooms for everybody else. We just couldn't have imagined that time the incredible power of the emerging premium mass segment and that segment's demanding and they should be.

We just delivered about $19,000, almost $20,000 win per table in that segment in Macao this quarter. We did it for the first time almost $5 million in MBS primary from that segment. That's where the growth is. But this opportunity in Singapore is so much bigger than even that. I mean I think $5 million is a nice starting point. We didn't build the right room product to this segment, we didn't get the premium mass the entertainment product they wanted. This segment once at all, it's a lifestyle segment. And with this expansion we take dead aim at that segment. We're building a 1,000 suites roughly at 1,000 square feet roughly.

This was the best product we've ever built, barring on any hotel in the world. We're building a large arena and partnering with the smartest invest entertainment people in the world to ensure a week after week that Macao -- excuse me, MBS in Singapore will become an entertainment powerhouse, and we coupled that with our Cotai Arena Macao. We have synergy there and we've become an important part of any touring entertainers' plans. We have the synergy from Macao in Singapore is exceptional from an entertainment perspective. The target for this audience is affluent foreign tourism in Singapore. What they want, the best suites, we'll get them. The best entertainment check, the best retail, we already have it.

We opened Marquee last week it's an amazing response. This is a voracious consumer to once at all and -- MBS will deliver at all along with one of a kind 54 -- fifth floor gaming salon, more slots, more ETGs, we can't fill the rooms when we have those days we can't fill the rooms with premium mass, the suites we sold at remarkable high rates to non-gamers. The same with the MySpace to enable us to achieve the highest -- rates we can get for a 3,500 rooms and suites.

This project will take Singapore and MBS to a different level to a different gear. Our industry is product-driven. Look at Cotai, does anyone believe Macao could have achieved its current success with our Cotai. I was there, it was a vertical building properties, it was all tall buildings potentially small acreage, few rooms, no entertainment, no retail, no spa, no MICE, Macao has become supercharged by extraordinary product, $20,000 win per unit per day in premium mass this quarter or 19.5%. Look what happens, you bring Bruno Mars or Jacky Cheung or BTS or Maroon 5 or Celine Dion to Macao, revenues explode.

In Las Vegas entertainment drives room rate. In Macao, it drives gaming revenue, it explodes gaming revenue. This is what will happen in MBS, it's always about the product and our business. The market for Singapore premium mass is there. It needs to be exploited, it needs to given what it wants to come. And in addition, less mentioned, our competitor, Genting will invest, I think $4 billion, $5 billion the sing (ph) dollar to create a new product to further enhance the destination. Changi Airport already exceptional airport just opened other key expansion. Singapore is an extraordinary place and its growth will keep coming. The government made a wise choice to enable this to happen and we couldn't be more grateful or more excited.

Stephen Grambling -- Goldman Sachs & Company -- Analyst

Great. And changing gears to Japan, I guess, maybe it's still too early, but how did the development projects you have under way in these other markets compared to what you think is possible in Japan? And maybe what are the puts and takes to ROIC to think about in that market?

Robert G. Goldstein -- President and Chief Operating Officer

Well, Japan is still, as you know, ways out. We are deep into it. We're committed to it. We have a team on the ground there and I think you'll see us do something, the same fashion we've done in Macao or Singapore. Our goal is -- we're looking at decades investment -- investing many billions of dollars, but we don't go into markets and look for a cheap way to do things, Sheldon's approach has always been scaled, it's been dramatic, it's design-driven. It's a very, very special way of approaching a market to our -- to the M&A question, a few minutes ago, M&A doesn't offer the opportunities to us that Japan could or other markets could.

So our commitment to Japan is immense. It will be lots and lots of rooms -- many, many rooms, there will be lots of retail, there will be lots of MICE, far beyond what people understand we're thinking about for Japan, the government stands at, but we are fully commuted to be in Osaka. We're fully committed to make a commitment to do very well there and you'll see us invest a lot of money to create extraordinary product that last for a long time and we'll get great returns as well.

Stephen Grambling -- Goldman Sachs & Company -- Analyst

Thanks. I'll jump back in the queue.

Robert G. Goldstein -- President and Chief Operating Officer

Thank you.

Operator

Our next question comes from the line of Thomas Allen from Morgan Stanley. Your line is open.

Thomas Allen -- Morgan Stanley -- Analyst

Hey, how are you? So few questions on Singapore. So VIP revenues or rolling volumes were up about 5% quarter-over-quarter. Have you seen any life there? And then your mass table revenue was up a lot and your thoughts were down, any like rationale for why that dynamic?

Robert G. Goldstein -- President and Chief Operating Officer

Yeah. I'll start with VIP, Tom. As you know, we're not big believers in huge growth. It's volatile, it's driven by -- it's a very -- it's a market we always believe it could grow, but it's got impediments that we find very difficult. I don't think our biggest growth opportunity will be in VIP, because could it slide to $8 billion, $9 billion and $10 billion one quarter, yeah it could, could it fall back to $6 billion, $7 billion, next, it could. I think we're looking basically, the playing field is stable and that's about all.

There is growth, there is real growth in the premium mass side and we're seeing increased tourism -- foreign tourism, again to comments on the last question, why we're committed to spending a lot of capital in Singapore, we think it's well underserved, I mean $5 million a day is a nice number to get to, but Macao, we got $1.5 billion the quarter and this is no question that we can get further there in terms of the premium mass table play. Slot capacity is constrained.

We are having until growing it, it has grown $6.50 billion annually, it was $6.75 billion or -- but we have had trouble growing it, we need more slot machines, this will fix that issue, this expansion. And there's no question, it's one of the world's great slot ETG markets. And there is no question this will serve us well. So the growth is there in Singapore, growth is there in tables and slots, more on the premium side than the rolling. It's -- again it's concentrated in the rolling side, it's more difficult there. But yet the premium mass side looks like it's got the vast potential from our perspective, as does the slot growth.

Thomas Allen -- Morgan Stanley -- Analyst

Helpful. Thank you. And then did you change the name of the St. Regis as tower suites to Londoner towers suites and if you did why and then did that -- did the timing of that just dropped a little bit?

Robert G. Goldstein -- President and Chief Operating Officer

Yeah. We did change the name, we've decided -- we keep the St. Regis name on the current building that it's -- there are operating very well. We decide to be more of a -- again, it's more of a lifestyle brand decision on our part to focus on our own brand as part of the Londoner umbrella. We're going to control 95% of the product there anyway. It won't be for sale. It'll be comped, if we're successful 100% of the time. We probably can do a better job controlling it that way and putting on the Londoner umbrella.

We are really enthused what's happening in Londoner, we feel this is going to be a very, very successful product and have got a focus again take getting at the premium mass customer in Macao, and so we felt we have better control by converting that back to Londoner umbrella, we will retain and very enthusiastic about our relationship with St. Regis on the -- the current St. Regis Hotel as part of Londoner teaming. But again, we thought we could do better and we're trying a different approach, and you're exactly right. We did.

Thomas Allen -- Morgan Stanley -- Analyst

Thanks.

Robert G. Goldstein -- President and Chief Operating Officer

Yeah. Thank you.

Operator

Our next question comes from the line of Shaun Kelley from Bank of America. Your line is open.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Hi, good afternoon. Rob, probably for you, but maybe just stick with Sands Cotai Central, some of the results there have been actually holding in, I mean, quite strong if not better than we expected. Can you just talk about sort of the outlook there for the property given some of the potential disruptions that you get into the some of the more aggressive renovation phases throughout this year and early next. What people should anticipate or can you maintain some level of activity given what you're doing in the premium mass Casino areas there?

Robert G. Goldstein -- President and Chief Operating Officer

Right. So Sheldon's theory is people want to see if we get rid of it. Because I think it's a funny theory. He said the more we talk about this the more people keep coming. We got a great quarter in Cotai Central and I think what is remarkable is that, we are in the construction there and it will worsen. I'm not prepared to define the level of disruption, because I just don't know, I mean very candidly, I just don't know Macao's an extraordinary place and people seem to cope with extraordinary circumstances, but we will -- we are continuing to build Londoner rooms that are under construction currently, the process continues, the project -- the exterior will start happening in the summer, I believe.

So there will be construction and there were down at these some disruption. I'm not prepared to quantify what that might look like, you're right there was $200 million plus quarter is kind of comical some people giving a hard time about that, say why you get rid of something if you could make $1 billion at the current where it's growing. But I think the answer is, because it's probably could be closer to the nation that building was 6,000 keys and what we do it properly and Shaun, we're doing it properly, the team -- our design development group has really evolved and the stuff we're doing is pretty special. I'm very excited to see it open and to share with you and the investment community. It will offer more cheese in any place double the Parisian key count, more suites and more theme, it's just pretty special what's going to happen there and we're very confident that it can grow measurably.

We talk about the M&A question. I don't think there is a better investment out there, we're going to invest dollar wise our return there. You can't touch it any place in the world, because this can do very, very well. I can't tell you we hit the initial numbers that might be a little too ambitious, but you're going to improve a whole lot. And we are extremely enthused about it. Again, don't want to speak to disruption, because I just don't know. I've been the consumer over there, things differently is different, they love the room for like and some of the hotels. I think the Holiday Inn conversional mimic the Parisian that conversion is 1,200 keys and 600 suites is going to be an unbelievable statement. The rooms look extraordinary, and so we couldn't be more enthused about what's going to happen as the transition evolves.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Great. Thanks for that. And then it is nothing but a follow-up to an earlier question, just on the overall market growth you saw on premium mass. Can you just give us your latest thoughts on kind of the cash comp dynamic for what you're doing with rooms? It's obviously a huge advantage for you guys given what you've got on all the product out there, are you continuing to bump up? What you're able to do on the comp side? Just could you see that kind of gaming demand or just what's the latest on market environment?

Robert G. Goldstein -- President and Chief Operating Officer

I'm not sure I understood the question, are you asking me, can't where rooms to get more demand.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Are you comping more rooms to drive the premium mass side?

Robert G. Goldstein -- President and Chief Operating Officer

We'd like to comp them all, Shaun but we don't have the demand yet. We are 55% I believe, portfoliowide. The truth is I mean that's -- you cannot get a -- there is no customer in the world that pays kind of rates to get my premium mass gaming customer and our goal is to keep moving toward more and more comp driven, that's always been the goal. We do have MICE demand midweek, Sheldon's prophecy is coming true, MICE demand suddenly picked up, the bridge is going to be a major driver. We're going to great problems some day in Macao, we already run the 90s. But the truth is, Macao needs more rooms. We have a huge competition in the segments. Cash business there is pending, comp business is picking up, premium mass is showing strong, MICE business is evolving, the bridge will change that. I wish we just had 5,000 to 10,000 more rooms, because we could use it painfully so.

Patrick Dumont -- Executive Vice President and Chief Financial Officer

And the environment there, Shaun, just to add on to that has been very stable. In fact, on the same number of rooms are reason for comp. The cash piece of reinvestment is actually decreasing as a percentage of revenue and you see this kind of growth, which is a pretty extraordinary performance by the team there.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Thank you very much.

Robert G. Goldstein -- President and Chief Operating Officer

Thank you.

Operator

Our next question comes from the line of Felicia Hendrix from Barclays. Your line is open.

Felicia Hendrix -- Barclays Capital -- Analyst

Thanks a lot. You guys OK if I ask a question about Las Vegas for a second?

Robert G. Goldstein -- President and Chief Operating Officer

Sure. You can ask what you want, Felicia.

Felicia Hendrix -- Barclays Capital -- Analyst

Thank you. Well, inside the part of your business. But I just -- I was wondering, especially since you guys are the first ones to report how the quarter progressed January through March, because we know that the January and February market RevPAR was strong, clearly March not as much given your RevPAR results. So I wanted to know if you could just talk about that, but also February was a tough (inaudible) month we saw that in your numbers, wondering if you've seen the demand for the Chinese high-rollers pickup. And then finally just on this Las Vegas question in last call that you were well positioned for Group in the year. So is that still the case, so overall like a barring all this volatility. How do you think Vegas in general and your property performance for the rest of the year. I thought it was really interesting in the deck that you said that, one of the opportunities you see in Vegas is the opportunity for room pricing increases, especially when there's a lot of investors that we speak with think it's getting more and more challenging to raise rates in Vegas.

Robert G. Goldstein -- President and Chief Operating Officer

Well, obviously we're different than some other people in Vegas, first, we have a different campus. And I think that we're structurally different and when Sheldon built this place, we're the only people in tapping (ph) to have this kind of campus, 7,000 keys all suites. We're in the epicenter, right. What was happening in Las Vegas. We have all this convention and MySpace which Sheldon again 20 years ago told people build it and some did, some didn't.

So we're a little bit unique and this quarter is good quarter for us, nothing exceptional in terms of the -- nothing happened here in the gaming sites that will be held within the range, which we had been done recently our baccarat business it did decent. I think Vegas will be fine with baccarat but I wouldn't expect a growth engine, because honestly as Macao gets better and better and those flights seem longer and longer. I think the -- our Asian customers may opt to stay in Macao, when you look at our campus in Macao, it's so damn compelling what they're offering, I do think you're going to see a challenge to Vegas baccarat to growth potential.

On the room side, we're very fortunate. We had an extraordinary rooms quarter and I think this -- I know we're not saying what the rest of the industry is saying, we're seeing strong group demand, we're seeing strong FIT weekend. I think George and the team here has done an exemplary job of maintaining rate and margins and I think little bit different than other people we had a very strong room product, we are underpinned by convention in MySpace. We have strong FIT demand this quarter is just a good quarter because we held within the range. The rates were strong, RevPAR was strong, we may or may not be indicative of the -- I wouldn't cost a barometer that for the strip, I can't speak to other people. And again, our product is very top tier. So we're very happy on Vegas' business. If we can keep having $125 million and $35 million quarters, it will be very nice year for us. I think we will feel good about it. From our perspective, Vegas is just fine.

Patrick Dumont -- Executive Vice President and Chief Financial Officer

Hi, it's Patrick one more thing about Vegas. I think we're a firm believer that if you reinvest in high quality product. You'll be able to drive value and drive returns and that speaks through the ADR. So if you look at what we did in the last quarter, our ADR was up 2.3% incremental if we keep doing that eventually over time we'll head in the right direction, assuming our investments continue, right.

So we've done a lot to reinvest in the campus here as Rob mentioned, we have an unbelievable asset hopefully coming online in a few years with this fear that's being done with Madison Square Garden one of the leading entertainment companies in the world as you know. So we think our trajectory for Vegas is actually incredibly positive. We like the expansion in some of the development that's going on around us. We think that will help us, the retailers performing well in the building. There's a lot of things that are now firing on all cylinders with George Markantonis following Sheldon's original vision. The critical mass does work.

So our ADR is just visibility into the success of the overall property. And I think one thing that you'll see in the future is that our convention business will continue to grow, but our FIT business will continue to be powerful as we get additional amenities online. And so that's why we have this view and we'll continue to deploy capital against this asset. Because it's a great asset.

Robert G. Goldstein -- President and Chief Operating Officer

One thing I would add -- it's actually patch two point sort of just particularly further, I should have references steel, which I think is a game changer for our building. I apologize, I missed that. Sorry Jim Dolan, sorry MSG, it's going to be a very, very different place a couple of years in the sphere gets opened as far entertainment and driving ADR.

Second thing, I think what's important to realize, Vegas is as you know, CapEx strong we've got invest hours to stay in the game. You look around this town. This is the town that recently extraordinary with -- but the keys of done at the towns you walk through these buildings, you've got to have an appetite for excess of CapEx to stay in the game. We've done that, we've invested heavily in Vegas and deposits point had paid off, but it's not as town you can let things erode or you erode quickly and we've reinvested over the years and we keep reinvesting but that's a key part of our strategy here is to stay current.

Felicia Hendrix -- Barclays Capital -- Analyst

Thank you. That's really helpful. And then just kind of switching gears to your retail business in Macao. Those sales per square foot numbers continue to be helpful. Appreciate it. Not sure if we make anything of it. There was a slight decline from the TTM, fourth quarter to now the first quarter, just wondering if there's anything to read into that, especially given China macro or if it's just, I don't know really nothing.

Patrick Dumont -- Executive Vice President and Chief Financial Officer

I think -- we have, I think you're referring to Page 34 and 35 in our deck and you can kind of look at the performance in Macao. We're very proud of these malls. We don't think there's any issue with global macro. I don't think you'll see malls anywhere in the world grow like this, and if there are some just point us out -- point them out to us. We think this retail story in Macao is extraordinary, we think it speaks to Sheldon's original vision of building critical mass of retail, of MICE, of entertainment and bringing high value customers into beautiful premium mass suites really driving this retail experience.

And so these revenue numbers, we think we'll continue to expand over time as we continue to remix tenants as we invest more the malls, as the Londoner mall opens up refreshed and as we get some other remixing done, we'll start to see additional upward pressure on our revenues as well as on our rent roll. So we're very pleased about the Macao story, I think Rob added some comments as well. But this is really just, it is another example of the critical mass toward that Sheldon offered. And we're very proud of the offerings that we have there, including the tenant mix which we think is unique to shopping experiences throughout Asia and the world.

Robert G. Goldstein -- President and Chief Operating Officer

Yes, all I add to that was our retail malls although make a lot of money obviously is demonstrated by the sales per square foot, they are part of the overall lifestyle package that makes this property and making all these properties in Macao and Singapore so compelling to consumers you walk through the Four Seasons, you walk in all these very high end, high street stores feel very cheap (ph) people just very well, buying with both hands are packed to the Gilles Venetian. It's just, honestly it's an extraordinary part of what we do and we already have that piece in Singapore as you see $9,000 a foot there.

Venetian which is not necessarily the highest in the market doing $7,000 a foot. Obviously, luxury at Four Seasons is $6,000 crazy numbers, but the point is -- these numbers won't go down, they're going to keep growing, and as part of our story, part of our life -- the whole feeling of the lifestyle and you get Macao. If you are to walk through it reasonably it should, because the quality merchandise that we've achieved the quality consumer and the way that fits in with all the -- when you -- I was there you watch these entertainment packages weekends new pack in the malls, it's all part of the approach where gambling is obviously critical in Macao, but we're starting lifestyle over there and it's essential part of who we are and I don't think it's going to diminish, that is going to keep growing both in Singapore and Macao.

Felicia Hendrix -- Barclays Capital -- Analyst

Great, thanks so much.

Operator

Our next question comes from the line of Anil Daswani from Citigroup. Your line is open.

Anil Daswani -- Citigroup -- Analyst

Thanks and good morning. My first question is on the Marina Bay Sands. Could you comment a little bit on the timelines of when you expect the project to be able to open? And also could you give us some more color on the options of the additional 2,000 square feet of gaming area, will that be focused on premium mass rooms in the new tower or are you going to focus everything on the existing casino?

Patrick Dumont -- Executive Vice President and Chief Financial Officer

Hey, it's Patrick. Thanks very much for the question. I think there's two things to think about, I think there's a lot of works to be done on the front end. This is a very, very significant investment and a very meaningful projects for Singapore and like the initial Marina Bay Sands development those going to be a lot of review. Our goal is to have this thing open as quickly as possible.

Our Chairman's view is that everything should be open as quickly as the Venetian which I think was 18 month, is that right?. So we're going to do our best as a practical matter on Page 16, we have a CapEx slide that you can see we're kind of laid out our preliminary views based on our development teams' initial works, I think we're looking to open this thing by the end of '23 of the hopefully we'll be able to get it sooner.

For those of you who remember the initial Marina Bay Sands development, had some interesting in ground issues related to water, sands, mud and a whole bunch of other things. So hopefully we've learned from that or we can move a little more quickly, but we like to believe that this is something that by 2023 were opened in trading. And I think the -- sorry, what was the second part of the question?

Anil Daswani -- Citigroup -- Analyst

The Gaming piece.

Patrick Dumont -- Executive Vice President and Chief Financial Officer

The Gaming Piece, sorry, excuse me. The gaming piece. So all of the benefits associated with this development that we may receive are dependent on us achieving certain milestones. So this is something that in effect just when we do the development -- complete these milestones we'll have the ability to access some of these benefits to the gaming.

Anil Daswani -- Citigroup -- Analyst

Okay. As a follow-up on the premium mass player that we've been seeing in the strong growth that you guys have been experiencing in premium mass in Macao, could you comment on whether it's bet size of the sheer number of players that are driving this business for you guys?

Robert G. Goldstein -- President and Chief Operating Officer

Interesting question, I don't know the answer at the top of my head, I think it's and for sure there more players showing up, that's a given. I'm not sure it's bet size as much as it's just a lot more people showing up and again I think it's about where you sleep hence where you gamble and since we have most of the better rooms in scale in Macao be at the Four Seasons or at Venetian or at the Parisian you tend to get the lion's share of wallet when you've got the suite they want to stay in. They may wonder off from the campus. But the truth is, in our buildings, they have the shows they want, they have the food they want, they have the retail they want, they have the spa they want. So we get an outsized wallet share. And I think this station is up on that premium mass segment, is no question of growing. I don't think it's bed size, I'd to ask (inaudible) question in detail but I think is more -- it's more about the amount of customers showing up and they're sure showing up again $1.5 billion this quarter just a spectacular number when you think about the margins against that segment and we were built for this -- we're built for this segment and this segment is coming on strong.

Anil Daswani -- Citigroup -- Analyst

Thank you for taking my questions.

Robert G. Goldstein -- President and Chief Operating Officer

Thank you.

Operator

Our next question comes from the line of Robin Farley from UBS. Your line is open.

Unidentified Participant -- -- Analyst

Hi, thank you. This is actually (inaudible) on behalf of Robin. What is your view on Macao VIP and particularly on Q1 VIP declines? Do you feel like that was sort of trade related -- trade war-related. And do you see that improving as you look into Q2 in terms of overall market declines?

Robert G. Goldstein -- President and Chief Operating Officer

Only numbers speak for themselves. There was a decline in it. It'd be foolish to guess exactly why is it macro, is it China macro? Is it trade war I think that'd be silly to opine on something that not have real visibility into. I wanted to say though that having been in Macao for a long time I can promise you VIP will resurrect and it's still an important segment and it trades in tandem with the very highest end of the premium mass market, the super premium mass and probably trades in sympathy with those kinds of people.

I think we believe VIP is worth investing and we're doing that right now, we believe that will come back. This quarter was obviously disappointing for the market in terms of decline and again I want to speculate on whether it's the economy, whether it's the smoking, whether it's a trade war that I just don't know the answer to that. But I do know is that, it will come back and I do know we're going to invest heavily, want to get our fair share as we think it's an important segment to begin. We think our products are made for it and we think our new VIP rooms in our better relationships enhance our ability to get more of that share with back, but that's the best I can tell you, the market speaks for itself and you draw your own conclusions based on the catalyst for the decline.

Unidentified Participant -- -- Analyst

Thank you very much.

Operator

(Operator Instructions) Our next question is from the line of David Katz from Jefferies. Your line is open.

David Katz -- Jefferies -- Analyst

Hi, afternoon everyone and congrats on a good quarter.

Robert G. Goldstein -- President and Chief Operating Officer

Thank you.

David Katz -- Jefferies -- Analyst

I wanted to just ask about your impressions of the economic context or the economic backdrop in China and how that's playing into the Macao business having made a recent visit, having seen some of the -- heard some of the commentary and seen what the numbers today or how are you thinking about the rest of the year?

Robert G. Goldstein -- President and Chief Operating Officer

Well, we'd like to look at. There were not expressing the economy, and I think we again remiss to talk about how we blew -- view a huge nation. I will say the -- again tourism and premium mass appears to be opt on toward the strong premium mass play into the town strong, base mass is just fine. We don't try to retain those in the macroeconomic climate in China and give an opinion on that, because there's three different points of view and it changes so rapidly.

But I will tell you that I think again Macao is showing real strength as evidenced by our numbers, and all I can point to is our success, I can't see the entire -- the other people's numbers how they did, but our premium mass, base mass and demand for rooms is very, very strong, it's excellent and is evidenced by the $858 million a quarter and that's all we look as, well, how we see it, it's a day by day, week by week things that during months of market. We don't pretend those to happen in six months from now. We don't know what the impact will be the trade wars resolved. We just don't know the answer is that, all we do is run our business, look at outbound tourism, it's strong in Macao, it's strong in our buildings and I'll stop with that comment.

David Katz -- Jefferies -- Analyst

Got it. My follow-up is under what circumstances -- are there any circumstances where you would consider pursuing any growth through development in Las Vegas?

Patrick Dumont -- Executive Vice President and Chief Financial Officer

Well I think, it's Patrick, I think we spoke about this a little bit in the prior question, but we're investing heavily in Las Vegas. We spent hundreds of millions of dollars of CapEx in room refresh and casino refresh and we're doing our restaurants and entertainment spaces. We feel very strongly about the trajectory of Las Vegas and the potential, particularly with some of the investments we have coming in as we mentioned and as Rob mentioned, the MSG Sphere, which is going to be the most technologically advanced arena in the world where we can see, it's going to be an absolutely stunning investments because it's something completely unique, like a must see globally. We're very excited about this stuff. So we continuously reinvest in Las Vegas to improve our offerings because it's competitive out there. I don't know that we're interested in doing a ground-up development because we have such a great asset base already where we sit. So that's kind of how we're thinking about it today. I don't know Rob, if you have any other comments.

Robert G. Goldstein -- President and Chief Operating Officer

I think to Patrick's points, the returns here this is a lodging based market. Let's not look otherwise. It's a great place to live and work and we've made a great -- our buildings here performed very well. The problem for us, Dave, is the returns outside here is far greater. I think the Singapore project is going to be extraordinary, we get it right, it's going to shock a few people. Over the years, we've made some pretty good bets over the years with in Macao and Singapore this one is going to be a very, very good investment and going to surprise a lot of people, obviously, Macao, the same way. We're deep into the soccer situation, we have few other jurisdictions we're looking at which we won't tell you which they are, but we are always looking and the problem is Las Vegas doesn't have the return that we get at other markets except for our own building which as Patrick alluded to, we'll invest heavily in Venetian and Palazzo and keep -- we are making some very large bets in this building to make it better and improve and stay current. But I don't foresee us investing in Las Vegas, because the other things out there in the rest of the jurisdictions are so much better in terms of return on our investment. And again, Singapore is a very large bet. But it's also great investment.

David Katz -- Jefferies -- Analyst

Thank you very much. Appreciate it.

Robert G. Goldstein -- President and Chief Operating Officer

Sure.

Operator

Our last question from the line of Jared Shojaian from Wolfe Research. Your line is .

Jared Shojaian -- Wolfe Research -- Analyst

Hey, everybody and thanks for taking my question. Could you just -- can you just talk about hold on the mass side? Obviously VIP was above the range, but it seems like your non-rolling chip win rates were a bit higher than normal to, anything different operationally or that you saw in terms of play or do you think this is simply just holding better on the log side?

Robert G. Goldstein -- President and Chief Operating Officer

We are within the range. I think I would say that is, we held within the range let's begin there. We held the high end of the range, but within the range. And again, that's just one indicator drop as one indicated, not a perfect one of volume. The base mass business and premium mass business is growing very, very strong, the weakness in the non-rolling business resides at the super premium mass, again which trades kind of in tandem in sympathy with the junket segment.

All I'd say is, we didn't hold outside the range, which is good. If we only can make $6 billion this year and not knowing we I'll not be happy. I'll leave it there. It's not exceptional result when we hold 2021, we don't call it out and say we held 2 point low in the range. So you can make an argument that premium mass helps this and we should get our fair share of really high-end premium mass in play lots of it and perhaps that help this quarter, but it could be down next quarter, when it's all said and done it's a non-event, it's not going to matter at the end of the day. But $1.52 billion result in non-moving tables is just a great quarter with margins to match. So we're very pleased.

Jared Shojaian -- Wolfe Research -- Analyst

All right, thank you. And then just switching over to Singapore, again. Can you give us some sense as to what percentage of your GGR is, I guess coming from guests that are exposed to the entry fee? And then in the near-term, puts and takes, obviously you have the higher entry fee, but then you get the additional slots later this year, how are you thinking about Singapore in terms of the 2020 net impact? Is it EBITDA positive, neutral, negative versus what you were thinking before the announcement?

Patrick Dumont -- Executive Vice President and Chief Financial Officer

So we don't really get into the details about splits of EBITDA from locals. I think the key thing here is just a great investment for us and a tremendous investment for Singapore and we work very closely with Singapore to establish the program and to decide exactly how to do this. I know that are there co-concessionaire did as well. This is a massive amount of foreign direct investment going to Singapore, that's going to fundamentally allow for a step function and growth in leisure business tourism. This is a very big deal for us and very big deal for Singapore, very proud and very lucky to be able to do this.

And I think in our minds, this is something that over time we will be very favorable long-term investment. We don't know the timing of everything yet. So it's hard to answer your question about cash flows, but we take a very long-term view and over the next 30 years, this is going to be a great investment for us and a great investment for Singapore just as the original MBS building was as well. And so I think on Page 27, we kind of lay out the investment case for Singapore a little bit. We have a couple of slides where we show the growth in tourism. We talk about some of the investment that Singapore is making in Changi Airport, how that infrastructure additions going to help tourism growth and just we address some of the themes around why the IR expansion will deliver what we all hope will deliver. We're very focused on this arena, we had great success with our arena in Macao. It's something that we feel like LVS will be the Asian leader in live entertainment with the ability to program these two great venues and we think it will be something that will really benefit Singapore and benefit us both from the desirability of our resource, as well as our ability to sell our hotel rooms.

So from our standpoint it's hard for me to answer your question, what's going to happen in the timing of cash flows because we're not really at close yet. What I can tell you the long-term thesis is a strong one, we're very enthusiastic about this investment, we feel it's a great one for the Company or produce good returns as well as the fact that it will enhance the overall attractiveness of the MBS asset as well as drive additional leader in business toward in the Singapore. So from our standpoint, this was tremendous. And we're very proud about it. We're very excited to do it, but I can't give you specifics about exactly the timing of cash flows was spot machines or entry or tax increases as we're not there yet.

Robert G. Goldstein -- President and Chief Operating Officer

One thing I would add to Patrick's comments, David to answer your question by local versus foreign it's clear when you build a 1,000 square foot suites and you build this kind of arena you're focusing foreign tourism. The growth here will come from premium mass people outside of Singapore that is -- that's where the growth resides, it's all those people and countries around Singapore thus far building this thing if we didn't see that kind of growth we wouldn't build all these keys and build this arena and we believe there are so many drivers of profitability from the ADR from the gaming side, from the retail side, it's a wonderful opportunity, but again the laser focus is premium mass foreign tourism.

Jared Shojaian -- Wolfe Research -- Analyst

All right, thank you very much.

Operator

This concludes today's conference call. Thank you for joining. You may all disconnect. Have a wonderful day.

Duration: 48 minutes

Call participants:

Daniel Briggs -- Senior Vice President, Investor Relations

Robert G. Goldstein -- President and Chief Operating Officer

Joseph Greff -- JPMorgan -- Analyst

Patrick Dumont -- Executive Vice President and Chief Financial Officer

Stephen Grambling -- Goldman Sachs & Company -- Analyst

Thomas Allen -- Morgan Stanley -- Analyst

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Felicia Hendrix -- Barclays Capital -- Analyst

Anil Daswani -- Citigroup -- Analyst

Unidentified Participant -- -- Analyst

David Katz -- Jefferies -- Analyst

Jared Shojaian -- Wolfe Research -- Analyst

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