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Wynn Resorts is growing in the United Arab Emirates – both literally and figuratively.
The company on Thursday unveiled plans for a $3.9 billion integrated resort on Ras Al Khaimah’s man-made Al Marjan island. Wynn first announced the project — the UAE’s first legal gaming operation — 16 months ago.
The centerpiece will include a 1,000-foot hotel tower rising above the island’s coastline, bordering the Arabian Sea.
The property will include a variety of resort facilities, including 1,500 hotel rooms and suites and several high-priced villas with beachfront access. The property will feature 24 restaurants and lounges and other non-gaming amenities, including 120,000 square feet of retail space and 100,000 square feet of meeting space.
The property’s casino accounts for only 4% of the property’s 5.6 million square feet of total floor space.
The UAE is home to nearly three dozen 1,000-foot-tall buildings, including Dubai’s Burj Khalifa, the world’s tallest building at 2,717 feet, a design Wynn CEO Craig Billings hopes will stand out in the region , the area is known for its unique architecture and monuments.
“Over the past year, we have carefully planned and conceived Wynn Al Marian Island, carefully considering its unique location,” Billings said in a statement. We take immense pride in the thoughtful design heritage carried over to the sun-soaked seaside resort that will delight customers old and new.”
during an interview nevada independent Last summer, Billings said the Ras Al Khaimah project would put “95 percent of the world’s population within an eight-hour flight of a Wynn brand.” The international airport in nearby Dubai handles more than 80 million passengers a year, he said.
The configuration of the property will match the curved shape of the island’s beaches, with ocean views from the entire resort, the firm said.
With the exception of the 1,149-foot-tall STRAT Hotel Casino and Skypod, Wynn Al Marjan Island will be taller than any hotel-casino in Las Vegas, including Wynn Las Vegas’ 631-foot-tall Encore. The property will also eclipse Singapore’s 679-foot Marina Bay Sands hotel.
Deutsche Bank gaming analyst Carlo Santarelli told investors the UAE property could add $10 to $14 to Wynn’s stock price by the time the property opens in 2027. Shares of Wynn closed at $114.28 on Nasdaq on Friday.
“In our view, given the UAE’s 22 million annual tourists and 90% of its 10 million population [not UAE citizens],” Santarelli wrote in a research note.
Under UAE gaming regulations enacted more than a year ago, Wynn Al Marjan Island will be regulated similarly to the two casinos in Singapore.
Regulations include different tax rates on casino games based on high-end (5%) or mass-market game type (15%), as well as entry fees to casinos. Additionally, UAE citizens, who make up 10 percent of the country’s population, will not be allowed to enter the facility’s gaming area, as gambling is prohibited in Muslim culture.
“Given the relatively low tax rate, we expect real estate [cash flow] Margins will be higher than in Macau, but probably lower than in Singapore,” Santarelli wrote.
CBRE Equity Research gaming analyst John DeCree said Wynn’s forecast of $450 million to $600 million in real estate cash flow for Emirates Properties was better than the firm’s performance at Encore Macau, Boston Harbor and Wynn Palace.
“However, given the many advantages of the UAE’s location, including demographics, wealth, tourism, and the fact that Wynn Al Marjan may be the only game in town, we believe the long-term earning potential may be greater,” DeCree said in a statement. wrote in the research report.
Two Nevada-based casino operators already have non-gaming properties in the UAE, and other gaming companies are reportedly exploring the possibility of entering the region.
Caesars Entertainment has opened Caesars Palace Dubai, while MGM Resorts International is part of a development that will include two MGM Grand hotels ( MGM Grand) and Bellagio (Bellagio) branded hotels, as well as a series of MGM signature villas.
Al Marjan Island is part of four islands that Wynn is developing with local partners Marjan LLC and RAK Hospitality Holding LLC.
Ras Al Khaimah is considered one of the fastest growing tourism markets in the MENA region.
Updated on April 28, 2023 at 1:16 PM to reflect Wynn Resorts closing price.
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