Leisure & Hospitality

Casino operator Wynn buys more land in Ras Al Khaimah

August 7, 2024, 10:42 AM

The Wynn Al Marjan casino under construction in Ras Al Khaimah

70 acres purchased at casino site
Total cash investment of $514m
UAE is ‘most exciting new market’

Wynn Resorts, the Las Vegas-based hospitality operator building the Gulf region’s first casino on Ras Al Khaimah’s Al Marjan Island, has closed a deal to bank an additional 70 acres of land in the emirate for future development.

The disclosure was made during the company’s second-quarter earnings call on Wednesday.

Wynn Resorts made a significant $356 million equity injection into the $4 billion Al Marjan Island joint venture in the second quarter of 2024, bringing its total cash investment to $514 million.

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Around $300 million is allocated for the current development and just over $200 million for the Marjan land bank and associated infrastructure.

CEO Craig S. Billings said the latest deal gains the company more of the 155 acres of Island Three, the island on which its Al Marjan resort is located.

“As a result, our joint venture now owns not only the land there, but also 70-plus acres of land for potential future development on the island,” he said.

The acquisition aligns with Wynn’s proven strategy of land banking, historically successful in markets such as the US and Macau.

The company, which owns the luxury Encore hotel and casino brand, also registered trademarks for ‘Encore Marjan’ and ‘Encore Al Marjan’ in 2022.

“We are confident that acquiring this sizable Marjan land bank will prove valuable over the long-term,” Billings said.

“I believe the UAE is the most exciting new market for our industry in decades,” said.

Billings, who said he had just returned from several weeks in Dubai and Ras Al Khaimah, added that construction on Al Marjan Island is progressing quickly, with the building now standing as the tallest in the emirate at over 90 metres.

The land rush in Ras Al Khaimah has intensified as developers scramble for prime beachfront real estate in the emirate ahead of Wynn’s scheduled 2027 opening.

Sameh Muhtadi, CEO of RAK Properties, earlier told AGBI that land reclamation is becoming increasingly attractive due to high demand.

Evolving gaming regulations in the UAE, such as the recent issuance of the nation’s first lottery licence, are also attracting attention from other major players like MGM Resorts International. It has hinted at the possibility of opening a casino in Dubai.

Real estate consultancy CBRE estimates that legal gambling could generate $8.5 billion annually for the UAE.

Billings said the company’s Ras Al Khaimah development has seen substantial interest from local and international banks, underscoring the high returns expected from the UAE investment.

“We also made meaningful progress during the quarter on the debt financing for the project and expect that we will finalise that financing later in 2024,” he said.