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THERE has been a major shake-up in the top ranks at Marina Bay Sands (MBS) integrated resort, with the departure of two of its senior executives this week.
MBS president Nigel Roberts and vice-president of hotel operations Tony Cousens, who were responsible for opening the resort and overseeing its operations, have resigned.
Yesterday, two new names were announced to pick up where they left off. Both are hospitality veterans with experience in the United States and internationally.
The new MBS president and chief executive officer is Mr Thomas Arasi, and the new executive vice-president of operations is Mr Ronen Nissenbaum. Mr Arasi, who will oversee every aspect of the development, was appointed last week. Mr Nissenbaum will arrive in Singapore on Aug 24.
MBS parent Las Vegas Sands (LVS), too, has seen movement in its upper management ranks with Mr Leonard DeAngelo, its Asia operations' senior vice-president, resigning around the same time.
All three were appointed earlier in the year to much fanfare. MBS declined to comment on why they left, but speculation is rife.
CIMB-GK economist Song Seng Wun thought it was 'odd that people were resigning within senior management levels so late'.
'It could be a dispute or related to the delays in the project or overall company losses,' said Mr Song, who has been following the IR's progress. 'This might be a way for MBS to get things back on track.'
These changes come on the back of some disappointing news. LVS posted a loss of US$175.9 million (S$254 million) in the second quarter, on reduced spending at its resorts and costs of settling a legal matter, among other factors. Its opening date was also pushed back recently, to the first quarter of next year instead of this year end.
The new appointments were announced at a meeting with LVS president Mike Leven, who was in Singapore for a three-day visit.
Hiring the new 'heavyweights', he said, was a way 'to gear up for the final stages in making this magnificent structure come to life'.
The top challenge for MBS here? The pressure the recession has put on average hotel room rates, he said.
Average room rates here fell 21.3 per cent to $195 in June, after a high of $256 in February last year.
'Other than that area, I don't think we are going to be dramatically impacted by the current climate,' Mr Leven said, adding that steps have been taken to generate income from other activities and markets as opposed to just room rates.
He predicted that in the first year, about 75 per cent of the IR's business would be dominated by its gaming sector, although he expects strict restrictions here on lucrative gambling junkets for high-rollers. The total amount of casino income in the first year is expected to range between $1 billion to $2 billion.
'As time goes on, these segments will switch around and change as the property matures over the first couple of years,' Mr Leven said, adding that it was good to leave a bit to the market to decide.
And although MBS had previously said that more than 20 Mice (meetings, incentives, conventions and exhibition) events have been booked for as far forward as 2013, none is expected to be held before April 1 next year.
The real surge will be felt only in 2011, said Mr Leven, as Mice exhibitors and organisers do not book events in the first year as they do not know exactly when facilities will open.
'In the meantime...I expect we will do a significant amount of social business, including weddings and banquets.'
Asked about the target of filling 75 per cent to 80 per cent of its 10,000 job openings with locals, he said: 'We would like to have many Singaporeans, but it is still hard to get maids and housekeepers here.'
Turning to recent announcements of a possible initial public offering on the Hong Kong stock exchange of its Macau Properties to raise about US$4 billion, Mr Leven said negotiations are under way and that he remains optimistic.
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