The expansion of Las Vegas Sands (NYSE: LVS) is continuing to take place around the world and the company will soon take another step toward domination of the Macau market: It announced that the second phase of Sands Cotai Central in the Cotai Strip will open on Sept. 20. Sheraton will be opening a hotel tower with 3,896 hotel rooms and the Shoppes Cotai Central will add another floor of space. The next addition to Cotai Central will be made in 2013.
This expansion is part of the latest growth plan for Las Vegas Sands in Macau and will be the last resort to open there until at least 2015, when Wynn Resorts (Nasdaq: WYNN) and MGM Resorts (NYSE: MGM) are expected to enter the Cotai market.
But the company has even bigger plans half a world away. It's currently moving forward with its plans for a huge development in Spain, and Spanish officials don't seem to be concerned about the company's latest legal troubles, which could have delayed the development. Nevada officials are looking into potential bribery in China, and the U.S. Department of Justice and SEC both have probes open regarding the company. But high-level officials in Spain are brushing off the investigations and seem more interested in charming Las Vegas Sands than digging into its past.
The logic for Spain isn't hard to see. The country's banks were recently bailed out and unemployment is around 25%. Needless to say, I don't think bribery will be an issue for Spain.
Foolish bottom line
Las Vegas Sands has one more project planned on the Cotai Strip, one that will likely be completed around the time Wynn completes its resort and before MGM and Melco Crown (Nasdaq: MPEL) make expansions on Cotai. But if the company is going to continue to grow, it has to look 10 years out for the next big project, because growth in Asia is slowing. Sheldon Adelson has his sights set on Spain and he could also look to Japan, Vietnam, and South Korea.
These expansions will be key to the company's continued growth, especially considering the expansion of gaming in Asia. These are just a few of the topics covered in our new analyst report on Las Vegas Sands. The report comes with a year of updates and will keep you on top of all of the latest information about the stock. For more information, click here.
