Good day, ladies and gentlemen, and welcome to the Sands First Quarter 2023 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, but we will open the floor for your questions and comments following the presentation. It is now my pleasure to turn the floor over to Mr. Daniel Briggs, Senior Vice President of Investor Relations at Sands. Sir, the floor is yours. Thanks, Paul. Thank you all for joining the call today. With me today are Rob Goldstein, our Chairman and Chief Executive Officer, Patrick Dumont, our President and Chief Operating Officer, Dr. Wilfred Wong, the President of Sands China, and Grant Chum, EVP of Asia Operations and COO of Sands China. Today's conference call will contain forward-looking statements. We'll be making those statements under the safe harbor provision of federal securities laws. The company's actual results may differ materially from the results reflected in those forward-looking statements. In addition, we will discuss non-GAAP measures. Reconciliations to the most comparable GAAP financial measure are included in our press release. We have posted an earnings presentation on our website. We may refer to that presentation during the call. Finally, for the Q&A session, we ask those with interest to please pose one question and one follow-up question so we might allow everyone with interest the opportunity to participate. This presentation is being recorded. I'll now turn the call over to Rob. Thank you, Dan, and thank you for joining the call. The results speak from themselves. There's a powerful recovery underway in Macao in both gaming and the non-gaming segments. The future looks very good for both markets. Our commitment to investing in both Macao and Singapore has never wavered. In Macao, following a relaxation of travel restrictions, increased visitation has driven gaming volumes, retail sales, and hotel occupancy during the quarter. In other words, business is back. Sands China is in a unique position to capture the opportunity. Our diversified IR model with continuous investment in non-gaming segments, MICE, hotel suites, live entertainment, retail, food, and beverage, positions us well to deliver strong growth in the years ahead. Our focus is on all segments of Macao market, including international tourists. We're excited to have the opportunity to develop to deploy more capital to expand our non-gaming offerings in Macao. The $3.8 billion commitment we made as part of the concession tender is just the baseline. We will invest more in this extraordinary market. I look forward to everyone having the opportunity to see, to witness The Londoner and The Four Seasons. The quality of our new product is exceptional. Marina Bay Sands delivered EBITDA of $394 million for the quarter. Mass win was an all-time property record of $549 million. Rolling volumes have nearly equaled the 2019 level. Our $1 billion suite and casino renovation program is progressing. More suite inventory will continue to come online throughout the remainder of the year. We'll have 400 suites available by the end of 2023, up from just 150 prior onto our renovation. Okay, let's take some questions, and, please ask away. Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to enter the queue to ask a question, please press star one on your telephone keypad now. If listening on speaker today, please pick up your handset to provide optimum sound quality. We ask each participant to limit yourself to one question and one follow-up. Please hold a moment while we pull for questions. The first question today is coming from Joe Greff from J.P. Morgan. Joe, your line is live. Hey, everybody. Congratulations on these results. Thanks, Joe. Rob, Patrick, or Dan, whoever wants to take this first one. In Macao, presumably, March was better than February, and February obviously was better than January from an EBITDA and an EBITDA margin perspective. You know, I was hoping you can, you know, maybe help us understand maybe the margin exit rate, you know, coming out of the quarter as we head here into the second quarter. If you reported 31% margins for the quarter, March was something much higher than that. I was hoping you can help us, you know, maybe understand the cadence of EBITDA generation by month and, you know, maybe the same thing for margins by month, just so we're, I guess, thinking about it the right way in terms of our projections going forward. Joe, I'm gonna ask Patrick to take it, but before I do, I'll just say, I think you have to realize, I think you do realize that Macao is in its infancy as far as a return to a more normal operating environment. It's still early days there. This first quarter is still not representational of what can happen in Macao will happen. I wouldn't call it normal operating mode. As you referenced, the acceleration in revenues is clearly there, and that will accelerate margins. Patrick, do you want to add some more color? Thanks, Rob. You know, Joe, it's an interesting question, and I think we've been very focused on margins for many years at SCL. Unfortunately, the operating environment during the pandemic made it very hard to see the benefit of some of the work that the team has done over the years to make the business itself more efficient. I think in the long run, we're gonna look to see some significant operating leverage in the performance out of Macao, particularly as we reach a higher level of performance in a more normalized environment. I will say that there was a material difference in performance across the quarter. You know, January was obviously impacted because on January eighth, the opening occurred. Then subsequent to that, February is typically a very slow month post the Lunar New Year. March was a very exciting time. A lot of things were going full steam ahead. It was very exciting to see the recovery, the increase in tourism. Margins did recover to a more normal level. There was a lot of noise in the quarter because of the startup. I think overall, our long-term outlook for margins is quite strong. I think we've done a good job managing costs historically. I think the business itself was set up to be efficient. I think in the long run, given the mix of business, we should see a favorable margin, operating environment. Grant, I don't know if you have any comments you'd like to add to that. Sure. Yeah. Thanks, Patrick. Maybe I can just give some color on the March trends. I think, Joe, you're right. The market experienced a strong recovery through the quarter. Pretty much across all operating metrics, March was better than January and February average. I mean, just as a starting point, the Macao overall visitations citywide were up 22% in March versus the first two months of the year. For our portfolio, the gaming volume, non-rolling drop, and slot handle were both up 10% in March versus the first two months. Rolling volumes accelerated a lot more than that during the month, not least because we're starting to get some traction on the foreign VIPs coming to Macao to our properties. Hotel occupancy improved. Occupied room nights increased by 8% in the month versus the first two months, as we were able to operate more hotel rooms, with the additional manpower that were coming on board, in the second half of the first quarter, and that will significantly increase further into the second quarter. Overall, yes, I mean, March was a very pleasing month in terms of evolving trends. As Patrick said, operating margin did recover and did recover more in March. You know, hopefully, this is just the beginning. Great. Thank you for your comments there. You mentioned that 31% of your rooms in Macao were out of service related to labor constraints. Where does that stand now? Can you talk about labor constraints now, and, you know, how are you remedying that? Rob, should I take that? Yes, please, Grant. Yeah, you're the closest to that. Sure. I mean, hotel room inventory, Joe, availability, the actual availability for the first quarter, yeah, was around 7,700 rooms for SCL portfolio-wide. Effectively, we were accommodating as many rooms as we could given the manpower constraint during the quarter. As I just referenced, it did improve somewhat in March as the first additional hiring of the labor came on board. The Macao government and the Labour Affairs Bureau have been very supportive in helping us to bring on the labor that we need to operate, especially the hospitality side of the business, the hotel and the restaurants. As we go into second quarter, we would expect that on average, second quarter, we can reach 10,700 rooms in terms of our operating capacity. That's roughly 3,000 additional hotel rooms that will be able to operate in the second quarter. That obviously takes us up to much closer to our physical available inventory, and we will reach the 12,000 probably sometime in the third quarter in time for the summer peak season as additional hiring and training completes through the second quarter. Grant, is it safe to say the labor issues are non- event to the entire market by summertime? Yeah. Yeah, Rob, I think for most of the market, for the second quarter, it's effectively a non-issue from a hotel operating capacity. Obviously, the size of our inventory is the biggest. Right. We'll take a little bit of time to get up to full capacity, but obviously, it's a big difference already that we can see between operating, you know, 10,700 rooms versus 7,700. Thanks, Grant. Good, Joe? Thank you, guys. Okay. Thank you. Thank you. The next question will be Carlo Santarelli from Deutsche Bank. Carlo, your line is live. Hey, everybody. Thank you. Rob, just as it pertains to MBS, obviously now, you know, Macao has gotten up and running, and you're starting to see things normalize with obviously the comments there on March. Have you guys seen anything change behaviorally? I mean, we see the results. It doesn't look like anything's changed, but I was just wondering if there was anything that you've seen change in terms of demand around either the high end or the premium mass segments in MBS post kind of resumption of activity in Macao as, you know, it continues to ramp? Carlo, one thing I thought I understood, and I think I was wrong in retrospect, was the super high-end premium customer in Asia. I thought we would dominate completely in Singapore. What we're seeing is Singapore is doing very well. We've equaled our 2019 rolling volume. What surprised me to the upside is the international demand for Macao. Our rolling volume in Macao has been very pleasant, much more I thought. That we could be rolling in that market, far in excess of $20 billion-$25 billion annually if this keeps going. There's been a pleasant surprise. It has not hurt us in Singapore if you look at the numbers, but of course, there's only so much, you know, money out there, so it may have some impact. Singapore, as you see, had record numbers. The slot numbers are astounding to be at 900 plus per unit. I've never seen that in any market I've worked in, on especially the scale of machines in the market, plus our non-rolling win to exceed $6 million a day, it's pretty extraordinary. That's with the impediments and the big headwinds of our rooms being down, our casino being torn up, and there's yet to be a recovery of the Chinese consumer into Singapore at the level I think we'll get to. The pleasant surprise is Macao is attracting a very strong international Asian high-end customer, and yet we're doing fine in Singapore. We may be sharing a very large rolling business between Singapore and Macao for a long time to come. I had that wrong, pleasantly. I do think the slot business in Singapore and the non-rolling is just the beginning of a trend, a very strong trend. Once we get these rooms back in the casino and, you know, who knows where it goes, if we make $2.5 billion-$3 billion out of those segments in years to come, maybe. Clearly we're very happy with the results. For Singapore to do this well this early in the day without a full-blown China recovery, it's pretty impressive. I think we can believe we can make $500 million a quarter in the near future when things get back to a stronger place. You know, we're very pleased in both markets for different reasons. Great. That's helpful. Then just as a follow-up, I guess my question is more along the lines of are you surprised by when you're looking at Macao, obviously your premium mass business looks like, you know, it's recovering or I should say your base mass business is recovering relative to the first quarter of 2019, very similarly to the premium mass business. Given where visitation is today relative to 2019, is that dynamic surprising to you guys at all? It is to me. I think we go to page 14 of our deck to see the visitation being like 40% and yet see a recovery where it's at. It's very encouraging for future. The trajectory of Macao feels very good to us. As Joe alluded to the growth between January, February, March, Macao cannot be encouraged when you see we made $400 million roughly without visitation really coming back very much, without hotel rooms being fully occupied, without a lot of impediments, a lot of headwinds, and yet here we are. Yeah, it's very encouraging for us and to the market. Of course, we're the biggest beneficiary of the recovery of base mass since that's our dominant position. I want to also allude to the fact that we believe with our new Londoner and Four Seasons suite and physical product, we're going to compete very favorably, not just with base mass, not just retail. We're going for the very top end of the market as well to dominate that. We believe we can do it in both the rolling and non-rolling segments. We have both scale in terms of suite product, but also great aesthetic. When you see what we've done, we were there, and you see the new Londoner, you see the new Four Seasons. I promise you will be overwhelmed with the product, the quality. What that team has done is exceptional work. For us, we see no segment in Macao to our competitors. We wanna be first in every category. I believe it's possible with our new products. Great. Thanks very much. Rob, maybe I can get something on the— Okay. Please. Yes, please. Jump in, Grant. Sorry. Can I just add something to Rob's comments on the premium mass versus mass of the question? Yes, it looks like from the deck that we recovered at a similar rate on the premium mass and the mass win versus first quarter of 2019. Overall, in terms of volumes and headcount, it was definitely a premium mass-led recovery, and quality of customer has been increasing and the spend per head. The win comparison with 2019 is more a hold related issue on the premium mass segment for both 2019 and 2023. Overall, premium mass gaming volume, gaming drop, and headcount recovery is faster than base mass. I think to Rob's point, you know, we've been essentially outcompeting in the premium segments in both VIP and premium mass, as you can see from a market share in the first quarter. Our non-rolling drop recovered to two-thirds of the first quarter of 2019 level. That's in line with the overall market recovery in mass, despite our much bigger dependence on base mass. As the base mass, which has been lagged in the recovery, starts to ramp up, especially as more hotel rooms come online for city, for the whole city and for our portfolio, and also that visitations pick up and transportation logistics improve, we should obviously be the biggest beneficiary of that base mass recovery. Some of that you can already see in the way we've outperformed in the slot, electronic, gaming market, slot handle recovering to over 73% of 2019. That has a lot more exposure. I mean, Hong Kong base mass is a much bigger part of slot than tables. Obviously, Hong Kong base mass has recovered faster, as you can see from the visitations, where Hong Kong visitations are already 75% of where they were in 2019. You can see that our performance in electronic gaming has been strong, both in absolute terms and relative to the market. Certainly. Thank you very much for the additional context. I appreciate it. Thanks, Carlo. Appreciate it. Thank you. The next question is coming from Robin Farley from UBS. Robin, your line is live. Great. Thank you. Grant, following on your comments about the strength of the recovery being led by the premium mass side, I'm curious if you're seeing any impact at all from a visa policy that is sometimes turning down kind of frequent visitors or, you know, multiple visits in a period. Sounds like it's not impacting the recovery in your view, but I'm just curious if you're seeing any impact from that. Grant? Rob, shall I take that? Please, yes. Yeah, Robin, I think if you look at the visitation overall, we're seeing a much faster recovery from Guangdong than from the non-Guangdong provinces. I think that's for obvious reasons, the proximity, the ease with which the visitors from the neighboring province can get to Macao. From my point of view, I think the biggest impediment to a higher rate of recovery in non-Guangdong, it is actually the amount of hotel room inventory that was unavailable in the first quarter. I mean, we're the biggest repository of hotel rooms and with offline volume 36%. For the city as a whole, obviously the percentage of out of rooms availability was also very significant. I think people have kind of high propensity to think about coming to Macao. I think the hotel room inventory issue has been a big impediment, but that's obviously easing dramatically as we get into second quarter. Transportation is still only a fraction of what it was, especially in routes like from Hong Kong to Macao. You know, our ferries are only at 20% of where they were in 2019 during the first quarter. Obviously, the visitation from Hong Kong has been so strong. Overall, you know, the visitation recovery is progressing very well. You've got to bear in mind a couple of those pain points that are both, I think, I would say, easing quite significantly, and that's the hotel room inventory and the transportation. Great. That's helpful. Thanks. Just as my follow-up, if I could, you know, understanding it's gonna take a couple of quarters for all your hotel rooms to be up and running. At that point, when you think about the run rate where you are for operating expense, how would you compare that to 2019? Is there any kind of, you know, permanent reduction in some way in operating expense? In fact, is, you know, does the labor issue mean that costs are gonna be higher when you're kind of fully ramped up? Thanks. Thank you, Grant. Yep. I think clearly as we add headcount to man, to operate all of our inventory on the hospitality side, our payroll costs will start to go up. Obviously we expect the revenue to be rebounding a lot more. I think this is just the ordinary course of ramping up the capacity. We achieved multiple rounds of cost savings over the years, you know, after the 2014 downturn. We achieved some sustainable savings from that round. We made some additional structural cost savings on our expenses during the pandemic. We hope to hold on to some of those savings. In terms of the labor portion, you know, absolutely, we have to invest in the manpower, and to get our assets back up to full operating capacity. Obviously the costs will grow in line with that. You know, clearly we wanna be operating 12,000 rooms, not 7,700. This is something we're trying to do as quickly as we can. Great. Thanks very much. Thank you. The next question is coming from Shaun Kelley from Bank of America. Shaun, your line is live. Hi, great. Thanks. Just maybe to start, if we could go back to a couple of your comments, Rob, on the base mass versus some of the premium mass mix and the surprise there. I mean, is a healthy way to think about the mix that we're seeing in the market today, you know, this kind of low double-digit increase in spend per visit is that, you know, if I look at the 62% in base mass versus we call it 48% overall visitation growth, is that reflective of market conditions, or is there some subtext or some difference that we should be thinking about, or did that change throughout the quarter at all? Just trying to kind of get a sense of, you know, what's pent-up demand and how much of this is just getting the bodies back into the property. I think one thing we have to be careful of, we're again, we're in early innings here. In fact, we haven't. I would say if you're playing golf, we're still in the driving range. I mean, we haven't even gotten the first tee yet. This market, you know, 100 days ago, Grant reminded me we were kidding about the market, hoping to see a profitable quarter in 2022. We now just gave you a $400 million number. I think my point is, it's evolving so quickly and the movement, if you look at the. I don't think it's easy to spot trends. I think clearly the base mass, to Grant's comments, has been somewhat confusing, and the slots have recovered much better than base mass tables. Again, I think it's very difficult to assign a certainty to where the trends are going. I just think when you look at the page 516 or 14, you see the non-Guangdong visitation, which is pretty weak and so there's much more room to run here. I think when this is all said and done, we're gonna make a lot more money with a very healthy margin, and all this will be left behind the dust. I just don't think we can take, you know, what really is effectively half of January and two months subsequent and assign real value to it yet. It's just too early to figure it out. Grant, please jump in. No. Not a lot more to add to that, Rob. Yeah, I think you covered it well. What else you got? Great. I mean, the other question would be to follow up and it may be a little bit indulgent, but I'll try. Just trying to get a sense of kind of. Indulge us. Just trying to get a sense of market share as we, let's call it, exited the quarter, you know, be it March or some amount of run rate. You know, as we looked at it, you know, some of the checks suggested that it was accelerating it and you did very well. It probably depended a little bit of the timing on some of that base mass recovery. You know, for the quarter, we calculated you had around 27% share. Just kind of curious if that was level across the quarter or did you kind of, was your exit rate, you know, meaningfully higher than that? Just kind of trying to, again, probably extract a little too much from where we are in the recovery, but we want to try anyways. Right. Patrick's gonna take a look at that. Yeah. It's an interesting question. I think when we look at Macao, it's a story of investment. You know, if you think about the growth in Macao and the asset base that we have and why we're able to get the visitation and the productivity out of the assets, it's because of our scale of investment in nongaming. It's the rooms, it's the retail, it's the entertainment, it's the food and beverage, it's all the things that drive tourism value. We invested $2.2 billion across the pandemic. From our standpoint, it's a new day, right? We have probably one of the most important assets we ever created in The Londoner, which was Sands Cotai Central. There's a lot of productivity that's available there. We have 650 new suites that we didn't have pre-pandemic. There's a lot of volume that we're gonna be getting that we never had access to now that the pandemic recovery is underway. I think the other thing that's important to note is we've done this two other times. We were in the Las Vegas market during the recovery, and we saw the schedule and let's call it the slope of recovery related to pent-up demand in the marketplace and recovery of tourism. We went through that. We saw it in Singapore and the different stages of tourism access that occurred in a very controlled market in that recovery. Now we're seeing unfettered access to what is probably the best cluster of tourism assets in all of Macao globally. They've been continued to be invested in. There's a lot of depth to the market, and it is the beginning innings. It's early. To call a market share now is a little tough because it's not really comparable to pre-pandemic because of the amount of investment and some of the dynamics changes that have happened to the market in the last three years. From our standpoint, I think we put up a good quarter. I think we're positioned well. As Grant mentioned, we're very excited about the additional inventory coming online as we get manpower into the buildings. I think we're in a good place to continue to grow. We're not really looking at market share right now as much as we're looking at investment, visitation, access, customer service, and then margin and outcome. You saw the results of that in the quarter that we just had. March was really good. We're really excited about it. We're in a great trend, and we're gonna keep pushing. Congratulations. Thanks very much. Thank you. Thank you. The next question is coming from David Katz from Jefferies. David, your line is live. Hi. Afternoon. Thanks for taking my questions. I wanted to just go back to the direct VIP business in both markets. I know you made some commentary about sort of where Singapore is coming from and where some of the you know, extra business is coming from. Can you help us understand the direct VIP opportunity in Macao? Are there any insights that we can learn from about where that could evolve to over time relative to what we saw in the past, understanding that it's a completely different business today? I think we're all in the same boat here as far as not really knowing where, how... I think the first quarter is indicative that there's a VIP market. Our rolling volumes indicate that. We wonder if it can increase, keep going. One surprise to me has been the acceptance of foreign visitation from non-China countries into Macao, and it makes sense to me. The quality of product there, the diversity of product, the experience there is very. It's an exciting place to visit, easy to access, getting easier, especially for foreigners. I think that's gonna continue to build. Also the people that are. It's obviously because the structure of junk is disappearing, it's a much different approach. These are people you have to know who they are credit wise, et cetera, to be in business with them. I don't think it slows down. My sense is Macao has such a compelling product and such diversity of compelling product, and has such great food and retail. It's just an exceptional place for a visitor internationally, that I think you'll see more and more of that trend. I don't think it'll cost us business in Singapore in terms of, I think people still obviously get to Singapore for the same reasons. Macao, I think has a better future on the direct rolling business than I anticipated. I think it's driven by, again, access, quality of product, and people wanna go there. It's evident here in the first quarter. Obviously, it's impacted our retail sales as well. You can see the quality of our retail business in Macao, which is a direct relationship with the super high-end that come to visit. That's our, again, early innings, non-junket, liquidity issues, a lot of unknowns at this point. I don't think we should pretend to know what the future looks like. I think there's a very positive trend in the right direction. Grant, do you wanna comment? Sure. Yeah, I think Rob's absolutely right. The attraction of Macao to the foreign VIP gamer is immense. I think that the pleasant surprise, although we were obviously redoubling our efforts post the concession tender in bringing international visitation to Macao, and the VIP gaming was the first natural place to start, given that the general airlift, commercial air flights, are still a fraction of where they were in 2019. I think this direct VIP performance that you referenced, it was very healthy during the quarter and kept growing. We don't know, we don't know where it grows to, but there's no reason to believe that, you know, it wouldn't continue to grow, given, you know, the quality of the product. You can see not just the strong product appeal for the premium customer that we provide, but we provide such a diversity of it, such a clustering effect of so many world-class resorts. We already have four of them in our portfolio. Together with all of the our other colleagues in the industry, it is an amazing clustering of world-class premium gaming destination that should appeal to Regional players over time. I think the other point that is, I think specifically for us, we've been doing this for a long, long time in terms of our international direct VIP around the Asia region. You know, Las Vegas, Macao, Singapore. This is not a new structure to us. We've just got enormous ability to promote Macao now to the foreign countries because we have the capacity. To Patrick's point, we have, we have the new product that we've never had before, the availability of the top quality suites, the top quality salons. We have been and we're gonna continue to use our international sales network that we have the biggest infrastructure across Asia in the industry. And that's where we're gonna combine the benefit of this premium product, Macao as a destination for these Asian gamers, with our sales infrastructure that will continue to expand. I think the future is very bright for foreign visitation and foreign VIP market into Macao. If I can just. Thank you for that. If I can just follow up quickly. In terms of which, you know, any color on sort of, you know, which countries, you know, and where this is sort of coming from and, you know, any sensibility about sort of the sustainability. Obviously, you feel like you can continue to grow them, but the non-Chinese other countries and the degree to which extending credit may cost a little bit more along the way. Any color there would be helpful, too. We won't be, we won't be David, country-specific. Won't do that. We'll just say to you the demand is in a number of countries. I think, Grant's last point was very interesting. I was chuckling because he's absolutely right. We've been doing this for decades. In Asia, we have a very strong sales force. A lot of the same people have been with us for 20 years and represents in Las Vegas and of course, Singapore and Macao. We are the beneficiaries of that sales system. I think the high-end product we built now in Singapore and Macao is gonna drive that customer. Is this sustainable? Does it grow? I don't wanna predict the future, I just don't know. If it does, I think we'll be the biggest beneficiary of it, because again, we have the biggest network and we have all these different places that we can take people within Macao, and of course, to Singapore. It's hard to predict because again, it's early innings here. I think we are if there's a strong growing business in Macao, I think we'll get a big chunk of that. you know, time will tell how big it is, liquidity issues. The demise of the junket business clearly is a new day there. If we could roll $20 billion-$30 billion, it would feel like a good place to be, if that's possible. Thank you very much. Londoner looks great. Oh, thank you. Good luck. Thank you. You saw it? Yeah, we love people seeing it because it's only halfway there. What we've built so far is we're just very proud of it. Thank you. You're welcome. Thank you. The next question is coming from Brandt Montour from Barclays. Brandt, your line is live. Hey, everybody. Thanks for taking my questions. Hey Brandt. Thank— thanks. Given Grant laid out a pretty good case, based on the transportation impediments and the hotel room inventory impediments that premium mass visitation could very well outgrow base mass visitation from here. I hope I'm not putting words in anybody's mouth. Could you give us some insights into what you're seeing in terms of premium mass win per visitor and compare that to, you know, other markets that you saw reopening post-COVID in sort of an index to 2019? Trying to get a sense for how, you know, the pent-up demand on a per person basis is really trending. You know, I'll just make a few comments, and I'll pass it on to Grant. I think the key thing here is having seen this, as we said before, in several other markets, this is an impressive recovery. It's very strong. The people that can get there are consuming meaningfully in all segments. Retail, food and beverage, on the gaming side, on the hospitality side. It's great to see. It's very exciting. I don't know that in any of our markets we had a quarter with this amount of EBITDA recovery this quickly after opening, so that's a good indicator. I think we're very excited about that. I think, you know, it's hard to call. These things are, you know, it's I wish we had a crystal ball, but I think at this point, you know, we look at the recovery and it's very encouraging. I will turn it over to Grant to see if he has any additional remarks. Yeah. Yeah. I would say the points that we're making on the hotel room inventory and transportation is more a reflection of what happened in the first quarter. I think if anything, you know, those factors obviously improve, have been improving dramatically into March and into second quarter. You know, we obviously hope that the base mass would catch up as seeing as we're the biggest beneficiary of that segment. I think spend per head for the entire market is clearly up. The quality of customer is very high. I think it really applies to all segments. You only have to walk through the different properties. You can see the level of spending power, not least in our retail mall. You know, we're up 18% in overall retail sales versus 2019, but clearly the luxury segment is up a lot more. That's obviously, only 40-something% of visitations that we had in 2019. You know, not just in gaming, but also in the non-gaming and retail, you can see that those trends were consistent in the first quarter. You know, hopefully we can start to see the base mass visitation growing and the hotel room occupancy growing for the entire market. Great. Thanks for that. Switching gears maybe to New York, just curious if you're willing to give an updated thoughts on the RFP process there, if you think the timeline has shifted since we've talked about it three months ago, and any other comments on the factors for winning that third license. Thank you. Yeah. New York, a work in progress, waiting the response from the government. Obviously, it has pushed back. We don't know for a fact, let's begin there, we've been told it could be early first quarter of 2024. Again, we have no definitive date at this time. We do believe we have a very compelling bid. The project's in sync with our historical approach to development. It's a large scale resort with enormous non-gaming amenities, hotel, convention space, entertainment, spa, et cetera. Very beautiful design. Very much the LVS spirit, the way a hotel should be designed as a real resort, a real destination. We have close to 80 acres, I think we have a very special bid, a very compelling bid, and I hope the market sees it that way. Timing will reign with New York State's government, and I, again, we hope it's the first part of 2024. No more to say about that at this time. Thanks, Grant. Great. Thanks again. Thank you. The next question is coming from Steve Wieczynski from Stifel. Steve, your line is live. Hey, guys. Good afternoon. So Rob or whoever wants to take this. I mean, you know, if we look at visitation into Macao over the last, let's, you know, let's call it a month or so, it seems like there might have been or there might has been a, you know, a change in the makeup of the typical visitor coming into the market. Based on, you know, some reports that have been out there in the market, it seems like, you know, there potentially are more tour groups and stuff like that coming into the market versus pre-pandemic. I'm just wondering how you're thinking about the spending characteristics or, you know, or wallet size of the typical customer today versus what that typical customer looked like previously. I'm not sure I asked that question really the right way. If I didn't, let me know. No, I think you answered it perfectly. It's a good question. Grant, do you want to tackle that first? Sure. Yeah, I mean, I think we're trying to get recovery in all segments of the market, you know, as the tourism market is multifaceted in terms of the different segments. The tour groups were the last segment to really be, you know, recovering. That's only been taking place in the second half of the first quarter. Yes, the first visitors to come back have been more at the premium end. Over time, you're gonna get all the other segments recovering in good time. I don't think there's any difference fundamentally in terms of how these different segments behave or perform versus 2019. I think in general, of the people who've been coming back, I think you've seen a higher propensity to spend. Over time, as the other segments come back, you know, I don't think we should necessarily expect a fundamentally different mix or fundamentally different profile within each of those segments. The only different point to make at this juncture is that, yes, across all segments, the spending power is higher than what it was, and the propensity to spend is higher, we see where that evolves over time. Steve, I think we all agree that what Grant just said, we have total confidence that this market will look a lot like it did before. The only difference structurally is a junket situation. Maybe the more affluent have gotten better access earlier, I'm a staunch believer that that market will come roaring back in the base mass. If you walk around the Peninsula, you'll see already the base mass is booming down there, although it's a lower quality spend than previous base mass. I think the base mass market will come back. It's a question of how quick it does come back. This market will look fundamentally the same in 2023, 2024 as it did in 2018, 2019. I'm completely confident of that. Okay. Thanks for that, guys. I appreciate that. Then Rob, I think your the slide, what number is it? Number 23, is pretty interesting in terms of how you laid out your Macao capital commitments for the next 10 years or so. I don't know if you'll answer this, but, you know, if you think about that potential all-in, the four and a half billion that you might have to spend over the next 10 years, is there any way you can help us think about what you guys are kinda targeting for a, you know, a potential return on that commitment? Patrick? Yeah. I think we've always said publicly that we look towards a 20% return on invested capital there. I have to tell you, Macao is been a fantastic market to invest in over the last 20 years. We're very excited to follow through this commitment, we look forward to the opportunity to actually invest more. If you look at the growth of our company, it's because of the investments we've made in Macao in non-gaming. It's an extraordinary tourism market. The consumer responds very well, we're very excited about the opportunity in this new concession to invest more than what we have on this page. it's something that we're very focused on, we look forward to the opportunity to do it. I think we're gonna be raging bulls on Macao invest in the future. The further you look back to our past, the further you can see our future, which is gonna be, we believe non-gaming assets are wildly profitable, but they also drive gaming assets. It's all in sync. When we build more hotels or we build more retail or anything, it drives the gaming win. We've got plenty of positions to fill and to grow those numbers. You look at the slot numbers coming out of Singapore and the win per unit and tables, you realize just how far Macao can get to. You know, we never saw the investment in the concession being an ending point. We saw it as a beginning point. We much believe that Macao the next 10 years will make a lot of money for us. We're very bullish on the market, and we're thrilled to be there. Okay, great. Thanks, guys. Appreciate it. Sure. Thank you. Thanks, Steve. Thank you. The last question today is coming from Daniel Politzer from Wells Fargo. Dan, your line is live. Hey, good afternoon, everyone, and congrats on the quarter. Thank you, Dan. First I wanted to touch on Macao. Can you talk a little bit about the recovery level across the properties there and which have been most impacted by room and labor constraints versus, you know, mass versus premium mass mix? Similarly, with Londoner and the, the suite investments that you've made, what's kind of been the kind of the early read out of the gate and your expectation on recouping that typical 20% return on those investments in terms of timing? Thanks. Grant, are you still awake? Hello? Grant, please take that. Yeah, sure. I think between the properties, Londoner clearly is the most impacted by the hotel room availability. You can see that the reported physical inventory occupancy is only 46%-47% for the property as a whole, and that's the biggest repository of hotel rooms in our portfolio. Clearly the impact for that property was the greatest. At the same time, it kind of flips into your second part of your question, the portion that we were operating, especially the new product on the north side of the building, and the new suites, we've really had an exceptional customer response to the product. I think not just the excellence of the design and the hardware, but also combined with, you know, the actual programming of the hospitality, and just the levels of service, and the bespoke hospitality that we're offering, but doing so at scale. In terms of those return questions that you asked, we see the, you know, the early signs are very positive from the new product, including the new suites at The Londoner Hotel, and also the brand-new Londoner Court, which, you know, offering, you know, very different kinds of bespoke luxury hotel experiences for the customer. But overall for the property, it's a big property. We're hampered by the lack of hotel room availability during the quarter for sure. Off the new product that we're actually operating, the initial results have been very pleasing. Got it. Thanks. Just turning to Singapore, maybe if you could talk a little bit about the puts and takes the reopening of China and I know inbound travel from, you know, from China has been a little bit slower to recover. I guess, how do you think about that recovering over the course of the year? Similarly of your China customer base that had been in Singapore, are you still seeing that customer or have those, you know, has that base gone back to China? Patrick? Thanks. you know, it's a very interesting question. I think with the opening of China on January eighth, there hasn't been, you know, a huge influx of Chinese visitation in the early part of the quarter. There is an ongoing ramp of outbound tourism from China that we would be the beneficiaries from. That's something that we've been anticipating a long time. There is not the normal level of flights. There is not the, let's call it the normal airlift capacity that you would expect during a normal run rate period, which they're gonna slowly ramp into. Across the year, our expectation is that that visitation will recover. It's such a strong market for Singapore, has been historically, and yet we're able to execute these levels without that market really contributing. We're very bullish on the opportunity of outbound tourism from China to support Marina Bay Sands and its ultimate growth to where Rob has mentioned earlier in the call and beyond. There is one other comment that I do wanna make. You know, we had a very interesting question from Steve just prior to yours about the level of investment that we were willing to make in Macao. I think we're very optimistic about our investments there. It's a high return environment. We're very focused on continued investment there, not only through the fulfillment of our concession renewal, but also in general to grow our non-gaming asset base. The same thing was true in Singapore. You know, I think we're very focused on growing Singapore as a market. The opportunity there is very unique. It's a really high value tourism market that has a different catchment area than Macao. We're very excited about the Marina Bay Sands expansion, although just to sort of comment on it, kind of going down that vein, we have very high expectations for return on invested capital in both these markets. When we first went into the Marina Bay Sands expansion in 2019, and we entered into the development agreement in April of 2019, a lot of things have changed. You know, it's probably gonna be a lot more expensive. The pandemic brought, you know, brought additional costs. There's been material labor and material cost increases. There's been significant inflation globally, as everyone knows, and just overall market additions. I think from what you see in this quarter is that the strength of the market is on full display. You know, we really believe that it's gonna get stronger over time, and particularly with investment in high quality tourism assets, which is what the Marina Bay Sands expansion is. I think it's really important to note that there's been significant inflation since we began discussions a year ago. The cost of the Marina Bay Sands expansion is gonna be a lot higher. The good news is, the market is so good, we think the opportunity is gonna be a lot stronger and we're gonna do a lot better. You know, I think to set expectations, the investments that we make both in Macao are gonna be very strong return. We're very excited about them over the next concession period. We're really looking forward to investing in Marina Bay Sands expansion. We think that's gonna be a great asset. Both of these are gonna be expensive. The good news is we believe the returns are there or we wouldn't be doing them. I don't think our investment thesis has changed in either market with the cost inflation. you know, we believe in our long-term success. We, you know, in these markets, we sort of have a very long-term thesis in both of them, and we're gonna deploy capital into both and scale. you know, we're gonna look for high returns and, you know, we feel very strongly about the opportunity in both of these markets. I did wanna say that it's gonna be expensive and it's gonna be worth it. We are fortunate to be in two markets that, one, are expensive, but two, reward the money you spend. I think we're very fortunate to be in markets that can grow and grow. We will continue to invest heavily because we believe we'll get back to much bigger numbers in both markets. Stay tuned. We appreciate your time today. Thank you very much. Got it. Thanks so much. Thank you. Ladies and gentlemen, this does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation.