Wynn Resorts revealed today that it has acquired 155 acres of land on Al Marjan Island Three – the location of its US$4 billion UAE integrated resort development – including 70 acres that may be utilized for future development.
According to information contained within the company’s 2Q24 results announcement and elaborated on in a subsequent earnings call, the land acquisition former part of US$357 million the company paid during the quarter, which also included the purchase of Wynn’s 40% pro rate share in the joint venture firm developing Wynn Al Marjan Island.
While much of the acquired land sits directly underneath that development, Wynn Resorts CEO Craig Billings noted that the acquisition was of all the land on Al Marjan Island Three “including a sizable land bank for potential future development opportunities for Wynn Resorts or for selected third parties complementary to Wynn Al Marjan.
“We have banked land before in the US and Macau and are confident that acquiring the sizable Al Marjan land bank will prove valuable over the long term,” he said. “As I have noted before I believe the UAE is the most exciting new market for our industry in decades and are confident in the demand and EBITDA potential of Wynn Al Marjan as it continues to grow.”
Billings added that construction of Wynn Al Marjan Island has now reached the 15th story and at 90 meters is already the tallest building in the Emirate.
Once open in 2027, the integrated resort is slated to incorporate 1,500 rooms, suites and villas, the UAE’s first casino, 24 dining and lounge experiences, a spa and wellness experiences, a high-end shopping esplanade, a state-of-the-art events center, a theater hosting a unique production show, and more.
Asked if there was any news on the issuance of a casino license, Billings said he expected to see progress in that regard in the near future after the newly formed regulatory body, the General Commercial Gaming Regulatory Authority (GCGRA), recently launched its website and issued the UAE’s first lottery license.
“The establishment of the GCGRA creates incremental clarity for investors and financing sources – certainly on the bank financing side – and you’ll note that they recently awarded a lottery license for the UAE which I think hopefully gives folks comfort,” Billings said. “I assume they will be moving forward next to the next step in our licensure. I don’t have a specific timeline but you can see all the momentum that’s happening there.”
Separately, Billings confirmed Wynn’s ongoing interest in a potential Thailand IR development, adding that any such investment would be made directly through the company’s US listed entity. Fellow casino operator MGM Resorts revealed last week that it would pursue a Thai casino license through its Macau subsidiary, MGM China.
“There has been progress [in Thailand] and it is encouraging to see,” Billings said. “it seems as though the legislators in Thailand really want to get this moving which is great.
“We need to see more details on the regulatory licensing structure but the market is an attractive market. It is probably conducive to meaningful investment pending a deeper understanding of the regulatory licensing structure.
“It has amazing tourism infrastructure, a really strong service culture and a favorable operating expense structure so we are continuing to look at and monitor the process very, very closely and we are active on the ground there.”
