The impressive growth trajectory enjoyed by Lotte Tour Development’s Jeju integrated resort, Jeju Dream Tower, over the past 18 months is expected to continue through the remainder of this year, driven by strong tourism demand and favorable economic conditions, according to Korean brokerage Securities.
As reported by local media outlet Maeil Business, Kiwoom analysts are projecting that Lotte Tour will soon report an operating profit of KRW52.1 billion for the June quarter, up 57.4% year-on-year, with revenue up 25.8% to KRW198.3 billion. This comes after casino revenue grew 33.6% to KRW147 billion in Q2 based on 180,000 visitors, KRW761 billion in drop amount and a 19.3% hold rate – all surpassing previous records set in the third quarter of 2025, which was peak season.
While comps will get tougher in 3Q26, Kiwoom Securities said it expects the growth trend to continue, buoyed by a weak Korean won and robust inbound demand.
“While there is a base burden in the second half due to last year’s growth, it [is] judged that high growth would continue through the peak season of the third quarter, based on favorable inbound trends and an improved VIP mix,” the Maeil Business report observes.
It also noted commentary from Kiwoon analyst Park Jung-hyun, who pointed out that non-gaming at Jeju Dream Tower also shows solid fundamentals – the average room rate rose 13% year-on-year to KRW260,000 in Q2, driven by robust accommodation demand.
Maintaining a “Buy” rating, park said, “Lotte Tourism Development’s stock is considered undervalued as it has entered a phase of structural profit growth. The momentum for reducing interest costs through future refinancing remains valid.”
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