UAE: Wynn sets total budget for Ras Al Khaimah project at $5.1B; includes land, fees, capitalized interest

Wynn Resorts revealed via an investor presentation on Tuesday that the total estimated budget for its integrated resort development in Ras Al Khaimah, United Arab Emirates was $5.1 billion, of which the company’s equity contribution would be around $1.1 billion.

The budget includes land, fees, and capitalized interest – around $4.55 billion would come from direct development costs – and would be largely funded by $2.4 billion of debt, with Wynn adding that debt raising is already oversubscribed amid “strong demand from local and international investors”. Wynn’s own contribution currently sits at around $200 million with another $900 million still to come.

The presentation, made public during an investor day being held at Wynn Las Vegas on the same day as G2E began in earnest nearby, also saw Wynn outline its revenue and profit estimates for Wynn Al Marjan Island, including annual GGR of up to $1.67 billion. This, it said, would be driven by its unique high-end offering and geographical access to the region’s many ultra-high-net-worth individuals.

The company also expects to generate operating revenues of between $1.38 billion and $1.88 billion, and Adjusted EBITDA of between $500 million and $800 million annually – the latter thanks to margins that could creep as high as 43%.

According to information released by Wynn, those projections are based on a market size of between $3 billion and $5 billion in GGR and two other competitive integrated resorts operating in the UAE. However, Wynn said its core target markets – particularly Dubai – include a “large, wealthy and underserved market” and that international VVIP’s or ultra-high-net-worth international customers were expected to visit Wynn Al Marjan Island.

“Wynn brand, facilities, and 5-star service appeals to [the] industry’s most desirable guests,” the company explained. Those from Dubai, it added, have an “extraordinary propensity to spend on high-end F&B and hotels.”

Wynn Al Marjan Island would also offer strong tourism appeal to attract high-end gaming clientele from abroad and capture untapped domestic gaming demand from around 9 million ex-pats living in the UAE. 

In a presentation of his own at G2E earlier this week, CBRE analyst John DeCree noted that the announcement by Wynn in early 2022 of its plans to develop an IR in Ras Al Khaimah had sparked a construction boom, with the number of hotel rooms in the Emirates expected to double to around 15,000 by 2027 – the same year that Wynn Al Marjan Island is slated to open. Wynn was granted a gaming license for its IR project last week.

Earlier this week, Wynn Resorts was awarded the UAE’s first commercial gaming license for the Ras Al Khaimah project. The license, issued by the General Commercial Gaming Regulatory Authority (GCGRA), marks a significant shift in the UAE’s policy on gambling, previously illegal across the Gulf region.

The multi-billion-dollar project is scheduled to open in 2027, and will feature a gaming floor, more than 1,000 hotel rooms, convention facilities, shopping, and dining options. Located just 15 minutes from Ras Al Khaimah International Airport and 45 minutes from Dubai International Airport, the resort aims to redefine luxury hospitality in the region.