Wynn Sees UAE Investing $900 Million, Affirms Eagerness for Thai Casino Project
Wynn Resorts foresees investing around $900 million into the Wynn Al Marjan Island integrated resort based in Ras Al Khaimah, United Arab Emirates (UAE). Chief Executive Officer Craig Billings made these remarks during the company's first-quarter earnings call late on Tuesday, which aligns with their 25% share in the $4 billion undertaking.
Regarding the distribution of funds, he stated, "our capital contribution will be round numbers, call it $900 million, that heavily depends on the construction leverage. So, we're in the process of determining that currently. But you could figure something like 50-50 debt to equity and then we would be 40% of the equity."
The principal shareholders for Wynn Resorts' UAE project are Marjan LLC and RAK Hospitality Holding LLC, while Wynn Design and Development oversees creative and design operations.
UAE Casino Resort by Wynn: Progressing Swiftly
In relation to Wynn's financial involvement in the UAE project, Billings spoke of the ongoing rapid construction progress, with the potential for the hotel tower to be capped off in late 2025.
The Wynn Al Marjan Island could be the first casino hotel in the Middle East North Africa (MENA) region, potentially acting as a substantial long-term income source for Wynn and inciting a trend of casino development in the Emirates. The property spans 5.6 million square feet, but the gambling area is anticipated to be only 4% of that size.
Billings termed it "a meaningful high return on investment (ROI) project" and suggested that further details could be unveiled throughout the year. In 2021, Wynn had anticipated that the UAE initiative could generate up to $600 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), a projection that has not been adjusted.
It's noteworthy that gaming won't be the primary focus of the integrated resort. Dubai, located an hour's drive away from Al Marjan Island, is among the most-visited regions in the Middle East. The tourists who flock to the emirate enjoy fine dining, luxury retail, and other opulent amenities, which are all characteristics of Wynn's Las Vegas establishments.
Wynn Eyes Possibility of Casino Resort in Thailand
While the regulatory landscape in Thailand is evolving, Billings confirmed that Wynn is keeping track of the situation and might consider establishing a casino resort in the Southeast Asian nation.
In Thailand, Billings remarked, "it's still early days, and we have not yet seen the regulatory and licensing structures. Thailand is already a leading tourist destination, with extensive tourism infrastructure and a top-notch service culture. We will keep a close eye on the progress of the legalization process. I remain incredibly enthusiastic about the prospects of our company."
The CEO recognized the appeal of the Thailand market, citing its sound infrastructure, thriving tourism industry, and the possibility of numerous gaming companies vying for casino licenses.
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Source: www.casino.org
