SINGAPORE - Marina Bay Sands (MBS) will start full-scale construction of its expansion – which includes a fourth tower and a 15,000-seat entertainment arena – by July 2025, as the multibillion-dollar project enters the final phase of design improvements.

Construction is targeted to be completed by July 2029, MBS said in a statement on April 5.

The latest artist’s impression released by the integrated resort showed the entertainment arena positioned between its existing property and the fourth tower. The arena, which MBS hopes will “help attract top entertainers from Asia and around the world”, will also have a more open frontage.

Previously, the upcoming fourth tower was positioned next to the existing property, with the arena farther away.

The expansion is designed by Safdie Architects, the firm behind the existing property, led by architect Moshe Safdie.

It will include a luxury hotel tower with a sky roof, the entertainment arena and an additional premium meetings, incentives, conferences and exhibitions (Mice) space, as well as new food and beverage and nightlife offerings, said MBS.

Mr Patrick Dumont, president and chief operating officer of Las Vegas Sands, the parent company of MBS, said: “The all-suite hotel tower will set new standards of hospitality, the state-of-the-art arena will help attract the highest-calibre global entertainment events and artistes, and the additional convention and exhibition space will extend the success of Singapore as a leading Mice destination.”

He added: “This significant investment in Singapore will help ensure Marina Bay Sands is ideally positioned to grow its economic, employment and visitorship contributions in the years ahead.”

He also highlighted the development’s potential to drive tourism growth for Singapore.

When asked about the cost of the expansion, a spokesman for MBS declined to provide specifics but referred The Straits Times to Las Vegas Sands’ earnings presentation for the fourth quarter of 2023.

It stated that the expansion project’s costs are expected to surpass the 2019 estimate of US$3.3 billion (S$4.5 billion), inclusive of land costs.

It attributed this to inflation, the impact of the Covid-19 pandemic and higher labour and material costs, among other factors.

On the latest construction schedule, the MBS spokesman said: “We have been in close consultation with the Singapore Government through all aspects of the expansion project, and we look forward to continuing to work closely with them as we move into the next phase.”

Market watchers highlighted the strategic importance of MBS’ expansion to Singapore’s hospitality landscape.

Professor Lawrence Loh, who specialises in strategy and policy at the National University of Singapore Business School, emphasised the alignment of the expansion with Asia’s growing stature as a premier destination for top-class hospitality and high-end tourism.

Similarly, Mr Jesper Palmqvist, senior director for Asia-Pacific at hotel industry research firm STR, noted that the project fits well with Singapore’s desired positioning, catering to the luxury and broader markets, and maintaining its competitive edge through the new arena.

Both experts underscored MBS’ importance within the hospitality industry in evolving Singapore’s offerings to remain attractive to travellers and event organisers.

Mr Palmqvist said: “If you want to be competitive... you need to plan that next wave for 2030 onwards, for sure.”

Calling MBS a “critical queen bee” for the hospitality sector here, Prof Loh said Singapore expects more players in the same competitive spaces to continually upgrade to stay attractive and viable.

“Even more significantly, there will be multiplier and spillover effects, especially in the retail and food and beverage sectors,” he added.

Ms Selena Ling, chief economist and head of global markets research and strategy at OCBC Bank, noted that the expansion “will definitely add some jazz to the Singapore entertainment-hospitality sector, being such a high-profile project addition”.

During the construction period, said Ms Ling, the jobs created may be more for foreign workers, but once the expansion is completed, the jobs offered may be more diverse and generate more economic spin-offs.

“Given that costs, both manpower and construction materials, have risen significantly post-pandemic, it is possible that final costs (of the expansion) will be higher,” she added.

In January, before the latest plans were announced, ST reported that MBS had received approval for 153,100 sq m of hotel space to build 587 rooms, as well as 12,185 sq m of retail space.

When asked if these have changed with the release of the latest design improvements, the MBS spokesman said more details will be announced as the project progresses.

The expansion project is distinct from a US$1.75 billion reinvestment in the existing property, the largest reinvestment since the integrated resort’s opening in 2010.

Already, the refurbishment has revitalised the hotel’s Towers 1 and 2, introducing new dining options and luxury lifestyle amenities tailored to high-value travellers.

The refurbishment effort will now shift towards the hotel’s Tower 3, the lobby and Sands SkyPark, and will feature new premium dining and retail offerings and a transformed lobby, among other things.

This will be carried out in phases till 2025, MBS said in January.

Since its opening, MBS has welcomed more than 470 million visitors and hosted more than 1,750 new-to-Singapore Mice events.

MBS directly employs more than 11,500 people, with further growth of its workforce expected in the coming years to support the integrated resort’s expansion.