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spk04: Good day, ladies and gentlemen, and welcome to the SANS first quarter 2022 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 SANS. Sir, the floor is yours.
spk07: Thank you, Paul. Joining the call today are Rob Goldstein, our Chairman and Chief Executive Officer, and Patrick Dumont, our President and Chief Operating Officer. Also joining are Dr. Wilfred Wong, President of Sanchina, and Grant Chum, Chief Operating Officer of Sanchina. Today's conference call will contain forward-looking statements that we are 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. We have posted supplementary earnings slides on 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 Q&A session, we ask that you please limit yourself to one question and one follow-up so we might allow everyone with interest the opportunity to participate. Please note that this presentation is being recorded. With that, I'll turn the call over to Rob.
spk00: Thanks, Dan. Good afternoon and good morning to our colleagues in Asia. Some brief comments, then we'll go to Q&A. Our results continue to reflect the pandemic's impact, the travel restrictions, suppressed visitation, our financial results in both Macau and Singapore this quarter. We did generate positive EBITDA for the quarter in Singapore and for the company in total. The good news in Singapore is that travel corridors established last quarter have been replaced with an introduction of the vaccinated traveler framework, which allows vaccinated travelers to enter Singapore in much the same way as prior to the pandemic. In short terms, we are open for business in Singapore. Our conviction of long-term opportunity in the Singapore market remains steadfast. The billion-dollar capital investment currently underway at MBS will introduce luxurious new sweet product and amenities at that resort. In Macau, our considerable investments in London are nearing completion. As the market recovers, Four Seasons London will provide growth opportunities in both premium and mass customer segments. We continue to have the largest footprint in the Macau marketplace, and we appreciate the opportunity to provide input in the public consultation process. We look forward to participating in the re-tendering process as well. While the current quarter results in Macau were impacted severely by the enhanced travel restrictions in China, customer demand and spending in Macau have proven resilient at the premium mass level from both a gaming and retail perspective in periods when the restrictions have been relaxed. We remain confident that we will return to positive cash flow in both Macau and Singapore in the future as restrictions are eased and travel and tourism recover. We consider our portfolio of resorts in Asia to be an outstanding platform for growth for the years ahead. In addition, we continue to pursue opportunities to develop large-scale resorts in both the United States and Asia. The sale of Las Vegas was completed this quarter, which creates additional liquidity and optionality. Lastly, we need to build out our digital presence and to explore multiple opportunities. We will provide additional color at the appropriate time. Let's go to your questions.
spk04: 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 1 on your telephone keypad now. If listening on speakerphone today, please pick up your handset to provide optimum sound quality. Also, we ask each participant to limit yourself to one question and one follow-up. Please hold a moment while we poll for questions. And the first question is coming from Joe Greff from JP Morgan. Joe, your line is live.
spk05: Hello, everyone. Thank you for taking my question. Robin, I'd love to get a little bit more detail on the recent experience in Singapore with the VTL framework. Can you tell us or share with us you know, business volumes, visitation improvements, you know, in March and April to date. And when we kind of look at the first quarter and, you know, looking at the 121 million of hold normalized EBITDA, you know, how much of that was sort of the last month of the quarter, you know, given the benefits from more international inbound tourism?
spk00: Yeah, Joe, it's a fair question. The quarter to MBS was clearly driven. It moved upward as we went along. It started $17 million in January, went to $46 million in February. We had $58 million in March, and that trajectory is continuing. The momentum is going upward in April. I think, look, Singapore is back, and it will experience the same post-COVID numbers you see in the U.S., in my opinion. The question is, you know, how fast does it get there? The demand is there. It will continue, assuming there's no more surprises from the COVID situation. We'd like to think that Singapore can return to a billion-dollar run rate in this year. So $58 million in March feels pretty good, and that momentum is continuing. Great. That's helpful.
spk05: And I can't believe I'm not going to follow up on the cow-related question, but I'm going to ask. Can you talk about Thailand and sort of that as an integrated resort opportunity and what the latest is there? I know there have been press reports with your efforts, and that is an opportunity.
spk00: Yeah, I think it's premature, Joe, and we're looking at a lot of different things in Asia, and that's certainly on a list of things. But I think it's premature to get ahead of ourselves there. I'll pass on that. Great. Thank you, guys. Sure.
spk04: Thank you. And the next question is coming from Steven Grambling from Goldman Sachs. Steven, your line is live.
spk16: Hey, thank you. Maybe sticking with new development opportunities, there's obviously been a lot of back and forth in New York, specifically New York City, different boroughs, even seeing some headlines around Times Square. Just curious what you're seeing there, how we should think about that as an opportunity.
spk00: Well, New York's been on our radar for a long time. We continue to be in the hunt there. I don't want to get into specific boroughs' locations because I think that's proprietary, but we remain interested. I think it's a huge market for us. We've been very clear about that in the past. The process is quite a long way to go, and we'll just keep you posted as we hear and learn things. But we're in the hunt, and we'll see how it works out for us.
spk16: And then you did mention... You'll discuss digital when the time is right, and they obviously say patience is a virtue, which has clearly paid off looking at some of these stocks. So as you think about the opportunity set in front of you, has anything changed in terms of your thinking of what areas of the industry might be more or less interesting to dig into even before considering where the investment might end up?
spk09: So it's Patrick. So I think nothing's really changed in our view. We take a very long-term perspective on digital. I think our comments have been pretty consistent across the quarters. We're really in a growth and investment stage. So it's very early on and we have something to talk about. We'll definitely start discussing it. But at this point, it's a very early stage. We're building a team and looking forward to the future.
spk16: Awesome. Maybe one last one if I can sneak it in then. So since the development opportunities feel like they're still pushed out and you've gotten some proceeds in from Vegas, I think you maybe have mentioned this in the remarks, but just remind us in terms of thinking about capital allocation priorities. I mean, it's Is buyback something that's on the table that you'd be thinking about with some of those proceeds, or do you feel like there's enough other things to spend the money on in the near term? Thank you.
spk09: No problem. You know, this is a question that I think we get pretty often. You know, I'll refer to the answers that we gave in our last quarterly call, but I think the key thing to take away is we're very focused on new developments. The sale of Las Vegas was really to reinvest capital in high-growth opportunities that we think are unique to our company. We feel very strongly about our development capabilities and our ability to execute large-scale developments in new markets. And we think there's a lot of them out there, a lot of potential. And so we're waiting to see which ones come forward. And as Rob said, where we can invest to get the highest returns. In terms of return of capital, I think we've always said that the dividend is really the cornerstone of our return of capital program. It's something that we want to look at in terms of really long-term operational cash flow growth, and then we'll size it accordingly and look to that to recur before we actually start the dividend again. In terms of share of purchases, we've always said we've been opportunistic to return capital that way as well. If you look at our past, we've actually returned a fair amount of capital through share of purchases when we felt that we had the excess liquidity. So I think at this point, our priority is make sure we get out of the pandemic, make sure we have ample liquidity and a protected balance sheet to ensure that we recover from our pandemic operations. We can support our local host markets, support our team members as we go through that process. Then we're going to focus on new development and growth and investment in our existing markets, which we've been doing throughout the pandemic. And then we'll look to restart the dividend as operating cash flows recover. And then lastly, I think we'll look at shareholder purchases when the opportunities arise.
spk00: Let's not forget that we are investing a billion dollars currently in Singapore. We're trying to invest more in Singapore. And we think Macau, when things reopen, might be opportunistic as well. People forget how much capital we could put to work in our existing marketplaces.
spk16: Fair enough. Makes sense. Thanks so much.
spk04: Thank you. And the next question is coming from Sean Kelly from Bank of America. Sean, your line is live.
spk06: Hi. Good afternoon, everyone. Just maybe to actually touch on Macau for a minute, you know, Rob, there have been some fits and starts as it relates to the reopening in, you know, Hong Kong, and I think some positive progress there as case counts have come down. Any signposts maybe out of that market and maybe reconnecting that with Macau that the local team could give us some color on?
spk00: Sure. Grant, are you on the call?
spk13: Yes, good morning, good afternoon. Yeah, thank you for the question. Yeah, I mean at this stage there is no new information or news in terms of quarantine-free travel from Hong Kong to Macau. I think Hong Kong cases have been improved, but we're not at the point where there's any change in the quarantine policy.
spk06: Grant, maybe just to clarify, is that specifically as it relates to its interaction with Macau, or what about for visitors coming from overseas, possibly opening up a corridor to Singapore? Maybe help us think a little bit more broadly if you could.
spk14: I'm sorry, you're referring to overseas visitors from going where?
spk06: Yeah, from either, I think, arriving in Hong Kong and then, you know, I guess coming in from inbound places or leaving Hong Kong and going to places like Singapore.
spk13: So, sorry, you're asking a question about people going to Singapore or to Macau?
spk06: Well, specifically talking about, just is there any sign that Hong Kong is loosening up its overall visitation policy? Because it's been pretty closed from the external perspective. I guess that's where I'm trying to go.
spk13: Sorry, are you asking about Hong Kong? Yes, they have relaxed. So non-residents can now travel to Hong Kong from the 1st of May, and that hasn't been possible for some time. So you can go to Hong Kong from next month overseas if you've been to Hong Kong, but you still have to be subject to the quarantine policy once you enter Hong Kong.
spk00: Understood. Thank you very much. Okay, thank you. Next question, please.
spk04: Next question is coming from Robin Farley from UBS. Robin, your line is live.
spk10: Great. Thanks. I wonder if you could talk a little bit more about Singapore and any change and, you know, the composition of business there in terms of what's coming back. Is it more mass? Is it more VIP? Is it a higher win per visitor than what you saw before or just more, you know, absolute number of visitors? Just kind of what are you seeing sort of come back first? Thanks.
spk00: The answer is yes. It's all coming back. I mean, the demand over there for – in the month of March, we saw an outsized demand from – You know, free independent travelers on the pure leisure side. We saw premium mass. We saw high end plate coming out of over the rim. I just think Singapore is a unique position. It's obviously in Macau is in a difficult place right now. So people are going to gravitate to other opportunities. They want to travel. They're no different than what we've seen here in the U S I think our MBS products in a very, very unique opportunistic window here. We're hoping Macau opens up obviously sooner, but until it does, I think you'll see a lot more demand than typical. I think it's from all segments, the team there is feeling very good about what happened in the month of March. And, again, it's leisure travel. It's casino. It's VIP casino. It's premium mass casino. It's mass casino. It's universal. And it feels like we're in the middle of a very positive beginning. And hopefully without a COVID interruption or change in policy, I believe MBS has been a very productive 22. Great.
spk10: Thanks. And then my follow-up question. It's about – you had an announcement a week or two ago about, you know, it's probably a small investment, and I think it was sort of an integrity-related business for online sports betting. And I wonder if you could just talk about that, because it seems like there are some B2B online sports companies that already sort of provide that, you know, kind of for free as part of their services between the – the leagues and the sports books. And so I just, I wonder if you could talk about, you know, what interested you in that angle or what's different about that than kind of what's offered, you know, almost for free really by the other OSB B2B providers. Thanks.
spk09: Sure. It's Patrick. And I think what you'll see over time is us make investments in small companies where we think they have a competitive advantage in a B2B space that has a lot of growth potential and also where we think over time we may form into a larger platform. So from our standpoint, we're looking at a variety of different businesses that are in startup or early stage in order to make sure that we stay in front of technological innovation in our industry. And so this is part of a broader strategy. It is a relatively small investment relative to Las Vegas Sands, but we think over time this investment and others will help contribute to our overall digital efforts. So I'm not going to get into the exact thesis behind every investment that we do. There's a long-term plan for what we're approaching, and I think over time you'll start to see how that evolves.
spk04: Okay, thank you.
spk07: Thanks, Robin.
spk04: Thank you. And the next question is coming from Carlo Santorelli from Deutsche Bank. Carlo, your line is live.
spk03: Hey, guys, thank you. I just have two kind of timeline-related questions. And I don't know, Rob, maybe best to answer the first and then, you know, perhaps something on cover on Macau and the timeline there. But just in terms of NBS questions, obviously, you know, construction and things along those lines in this type of environment is very hard to predict. And I have not gotten a chance to get through the slides yet to see if there's any changes to kind of your expectations for the timeline there. But what are some of the goalposts in terms of construction on that? And then secondarily, as it pertains to the tender process and whatnot in Macau, how do you guys see the timeline for that shaping up as we move through the rest of 2022?
spk00: In Singapore, as you know, we're underway in a rather extensive renovation, a billion-dollar-plus renovation in Singapore that's underway as we speak. It's going to take a while. It won't complete until the end of 2023, but it's going to be very encompassing. As everywhere in the world has been impacted by COVID, both getting supplies and labor has been an issue, but it's happening. It's underway. We're still working through our issues with IR2. We were not ready to talk about that today because we're still working through issues there. Same issues, supplies, labor, costs, et cetera. We intend to complete IR1, again, 23. IR2 is still open for interpretation. As for Macau timelines and the re-tendering, I'm going to turn it over to Wilford Grant to take that question. Maybe Wilford is best suited.
spk01: Wilford Grant Thank you. The timeline for re-tendering of the concession is progressing according to the timeline announced by the Macau SAR government. Now currently a few things are at play. Two bills relating to the gaming law has been approved by the legislative assembly and will approved in full after the panel discussion before the end of this legislative session in August. And we are hearing all kinds of suggestions that it will be earlier than August. At this stage, we are going to be granted an extension of the current concession until the end of 2022. And that is the time that we expect the retendering exercise will be completed. And so after the amendment of the law, then the retendering procedure will start. A lot of information about the retender will come out. We are in the process of preparing for that retendering exercise. And hopefully everything will be done before the end of 2022.
spk03: Well, thank you. That's helpful. So just so I'm clear, in August, you'll more or less have everything you need from the gaming law perspective. And then that period from, say, August, if not maybe earlier, through December will be the formal tendering process when everything is more or less buttoned up. Is that the right interpretation?
spk01: That's right.
spk03: Great. Thank you very much.
spk04: Thank you. The next question is coming from George Choi from Citigroup. George, your line is live.
spk02: Thank you very much. A couple of questions from me. Firstly, in Macau, the Macau court has recently ruled that a couple of your competitors are jointly and separately liable for some illegal deposits with junkies. How do you see the likelihood that you guys will also be found liable for this potential liability after the recent close down of the major junkies there?
spk00: Grant, do you want to handle that?
spk13: Sure. Thanks, George, for the question. I think, as you know, the cessation of operations of all of these fixed-room junket promoters obviously happened fairly recently in December of last year. And as a result of that, obviously, there are some new court cases being raised by various stakeholders and participants in that system. Currently, there is nothing material to report from SANS China perspective. There are a few cases ongoing, but none of them are material, and we will continue to monitor the situation and obviously report back if there are any changes.
spk02: Thanks, guys. And my second question is on your balance sheet. Now, clearly, the first quarter was quite difficult for your Macau operations, and it's putting a lot of stress on your balance sheet as well as China. When it gets to the point where China needs to raise funds, would you guys consider equity as an option, or is the cost of debt still cheap enough that you would continue to look to raise funds from the debt capital market?
spk09: Patrick? Patrick, how are you doing? So, a couple of thoughts here. I think we're very optimistic about the long-term future of Macau. We understand that there's articles out about concerns around liquidity. I think we have a very strong balance sheet. Yes, we've received some stress over the last few years under the pandemic's tough operating conditions. I think we all have. But the good news is that our company as a group has a lot of liquidity. We have a lot of A lot of different options. I think the good news is also that we were an investment-grade company during the pandemic, which says a lot about the market's view about our ability to raise additional capital. So from our standpoint, I think we have a lot of flexibility. Our balance sheet was designed to withstand shocks and a lot of variability in our respective operating markets. I think we've proven that. And I think where we are today is we'll look to see how the operations continue coming out of the pandemic, which hopefully is soon, look at our liquidity and make decisions based on our available options. So I don't think we're stuck in one particular view. I think we have cash up in parent. We have cash around the system. We have an investment grade credit rating. We have access to credit markets. And I think the good news is we position ourselves well to benefit from the recovery on the other side. So I think we have a lot of flexibility, and we'll use it as needed.
spk02: That's very good, Carlos. Thank you very much. Thanks, George.
spk04: Thank you. Next question is coming from Chad Bainon from Macquarie. Chad, your line is live.
spk08: Hi, good afternoon. Thanks for taking my question. Wanted to ask about inflation. I know it's obviously something that people are a little bit more focused on here in North America, and it's different in different regions of the world. But wondering if you could kind of talk about the labor inflationary environment or employment situation in your key markets, Singapore and Macau, and how that could potentially impact margins when the business is fully recovered on the revenue side. Thanks.
spk00: I don't want to say one thing about our business. Obviously, you know, margins and inflation, it's a question we're anticipating. But I would say that I believe the revenue side of the equation is going to more than take care of itself as far as margins. We're going to be really – I'd be shocked if we don't see a big return in Singapore this year and then hopefully a big return in Macau in 23, hopefully maybe 22. I don't know. We don't have any visibility more than you do about what's going to happen in China. Let's be clear. But I do think, just like here in the U.S., margins have gone – very powerfully positive because the demand is there. I don't think Asia is any different. The equation is going to be driven by excessive revenue, I think, in Singapore. We'll see it this year, I believe, and hopefully we'll see it in Macau this year or next. As for the operating entities, Grant, you want to discuss as you see as far as Macau, for example, in wage inflation. I don't know how to address that question.
spk13: Sure, Rob. I think right now Macau is in a slightly different situation. If you look at the wage trend, it's very moderate, if not flattish, in terms of wage inflation. But obviously that's for reasons that are not hard to discern because there is pressure on employment since it's such a tourism-dependent economy. And then, interestingly, in terms of construction works, costs are, again, either in line with prior years or, if not, going down somewhat, again, because of the demand-supply situation that's specific to Macau, as a lot of large-scale works have moderated or been completed. At this stage, we're not seeing any significant signs on the inflation front. Of course, there are some supplies such as food and so on where we do experience inflation, but obviously for the totality of our business, this is not going to be material. But I think the important point is what Rob said. you also have to consider for our type of business the revenue side of the equation, which I think is going to be the more dominant driver if obviously prices take off.
spk09: Thanks. And just to sort of one other thought, you know, I think the important thing to note is where you'll see the impact of inflation is really in construction costs and in materials that go into construction inputs. or large-scale projects. You see that in the U.S., you'll see it in Singapore, and you'll start to see it in other markets in Asia as people come out of the pandemic, and really there's a pent-up demand pipeline of things that needed to get done, as well as a shortage of labor and a shortage of labor movement related to pandemic restrictions. So that is something that is a likely thing to be seen. You're already experiencing a little bit of it in certain markets. I think the other thing is, the good news is with inflation also comes pricing. And so our business is not tied into any long-term contracts. We have the ability to operate within the market. You know, Singapore has always been a very high-quality place for labor. It's been an expensive labor market. It's always been very tight, and we've always managed it. So, you know, I have faith in the team, faith in our execution capability to maintain margins through this cycle. I think that's really the nature of our business, that we have pricing power. We have the ability to change rates as a hotel, as a consumer products company, and really work through the changing in inflation and, in effect, make that part of the business margins.
spk08: Thanks, Patrick. And then separately, just kind of back on the digital portfolio opportunities that you talked about, just given the current valuation change that we've seen in a lot of the public companies, has anything changed just in terms of the total amount of money that you want to invest in this space, given that there might be some really good opportunities in the near term just because of a valuation disconnect? Or are you still kind of disciplined in terms of the total amount that you would put forward towards this effort? Thank you.
spk00: I believe we have to be disciplined, and the reason I say that is our core business, let's be honest, our balance sheet is what it is. It's in a pretty good place. If our business returns in Singapore like we anticipate, and then behind that comes Macau, we get back to $4, $5, $6 billion EBITDA, our investment portfolio approach may change as it relates to digital. But this time, we're going to stay doing what we're doing now, which is being very disciplined, waiting for our core business to return, because there's no one like us. If Macau comes back, I think we'll be back Hopefully, sooner than later, seeing if it is coming back, we'll be in a very different place in six months or a year, and that may change our thinking. I think it's pretty simple. We want to get back to our core strength, and then revisit other things at that time.
spk09: I think one other thing that's important to note is we're very much focused on building rather than buying. We want to make sure that we create a lot of long-term value. Our company has a history of being a platform of development and entrepreneurship, and we're taking that approach through our digital efforts in several different areas. And we think over time that will provide the most reward for shareholders. So we're very patient. We're thinking long-term. And yes, there are cycles in valuations across the digital space. In our mind, we'll execute against our long-term strategy and take advantage where we can.
spk08: Thanks. Appreciate it.
spk04: Thank you. The next question is coming from David Katz from Jefferies. David, your line is live.
spk11: Hi, afternoon, everyone. Thanks for taking my question. With respect to the U.S. land-based opportunity set that's out there, if you sort of have your druthers or have your wishes come to pass, what does the LVS U.S. land-based presence look like over time?
spk00: Any place there's very large-scale land. in the buildings that can create large EBITDA. We're not looking to be a small regional player, obviously. So that limits the opportunities, doesn't it, to Texas, New York. We failed in Florida recently, but we're not done with Florida. We're still looking at that. And, you know, there's very few places we can go and invest, you know, the kind of money we want to invest and get the kind of returns we want. We're not going to be buying small businesses. So I think at this point, as you talked to today, it would have to be Texas, New York, and perhaps Florida.
spk11: Got it. Understood.
spk14: Thanks very much. Thanks, David.
spk04: Thank you. And the next question is coming from Steve Wychinski from Stifel. Steve, your line of life.
spk12: Hey, guys. Good afternoon. Just one question for me. Rob, you talked about getting to that $1 billion EBITDA run rate in Singapore potentially by the end of the year, and I'm not sure you're going to answer this, but Is it fair to say that March and maybe more so April on a monthly run rate basis is enough to get you to that $1 billion run rate level? I'm just really trying to understand a little more how strong recent trends have been.
spk00: I guess looking at March, you're at about $700 million run rate if you annualize March. April looks better at this point. I don't think it takes a lot to get there. To be honest, I don't know why we wouldn't get there. We won't get into specific numbers in April, but The trending in Singapore, as I referenced earlier, Robin, someone asked a question about what's happening in Singapore. It's outsized demand in all segments. So why wouldn't it happen? I mean, I think it's going to blow past the billion dollars, frankly. I think it should. It just depends on if we see any pushback in COVID restrictions. I mean, we have an outsized opportunity. Singapore is the best product available in the market today. Macau essentially is not available. I think we compete very well anyway in Singapore, but it's unique now. And I think it should hit a billion dollars and better. The only negative there, as you well know, is China is still relatively close to us, so the market will miss. But we feel very confident about our prospects. In the last month, things have gone from hesitancy to a full-bore excitement about what's happening in Singapore. And I think the government, I hope they share our enthusiasm.
spk12: Okay, great. Thanks, Rob. I really appreciate it.
spk04: Thank you. And the final question is coming from Ben Chaiken from Credit Suisse. Ben, your line is live.
spk15: Hey, how's it going? I guess just two or three follow-ups on Singapore. You mentioned $58 million in March. Can you remind me, I believe there was some tax changes coming into play, I guess simplistically VIP and MAS each go up roughly 300 basis points. Was that in March already in the numbers you mentioned?
spk00: Yes, it was. As of March 1, that was it. We were impacted as of March 1 by the changes you referenced. Yes.
spk15: Cool. Thank you. And then, too, I think in the last few days, there's been some changes in Singapore regarding travel restrictions. Can you remind us, maybe refresh us where we are today versus where we were in March?
spk00: Where we are today is basically if you're vaccinated, you can get into Singapore pretty easily. There are still restrictions. And, you know, you've got to be if you're in the casino, you've got to be smoking or drinking water or something to be able to take your mask off. But pretty much, if you're vaccinated, you have full access to Singapore. It's a very different place than it was a month ago. So that's why we're so bullish on Singapore. This is quarantine-free entry for all vaccinated travelers and no quota on the number of daily arrivals. There's no more restrictions. So we're back in business in Singapore in a very positive way.
spk15: Gotcha. And then just last quick one, not to get ahead of ourselves, but Um, you, you mentioned a billion dollars a few times, but why not? I mean, you're doing 1.7 billion, right? Pre COVID and the new hotel coming. Like what, what's the, it's a billion, just a round number to.
spk00: Well, you say there's no, there's no new hotel coming. We weren't building a new hotel yet. So there's no new hotel. There's a renovation of a current hotel. Look, we just need a billion dollars of benchmark. We think that's attainable. We're not trying to oversell it or over, you get too excited ahead of ourselves. Let's see where it goes. We're looking at the results in the U.S. We're very excited what's happened in the U.S. The demand is there. We've seen a reason why Asia shouldn't just keep ramping more positively. And, again, as you referenced, that's a very unique asset. At $1.7 billion, the peak was the performance of MBS. Will we get back to it someday? Yeah, I think we will, and then beyond that, but it won't be this year.
spk15: Cool. Thank you.
spk00: Sure.
spk04: Thank you. There were no other questions in queue. Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. We thank you for your participation.
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