Wynn Resorts Expands Footprint in UAE With New Land Acquisition

Wynn Resorts has increased its commitment to the United Arab Emirates (UAE) market with a new land acquisition on Marjan Island. The company has closed a deal to purchase an additional 70 acres of land on this picturesque island, bringing its total land ownership to 155 acres – a quarter of the entire island. This move signifies Wynn’s long-term vision and confidence in the UAE market, as it develops a $3.9 billion resort in the region.

Wynn’s latest land acquisition on Marjan Island has elevated its ownership to 40% of the total 155 acres, with the remaining shares held by the island’s developer, Marjan, and the state-owned RAK Hospitality Holding. This significant investment, totaling $514.4 million to date, underscores Wynn’s unwavering belief in the potential of the UAE market and its commitment to establishing a strong foothold in the region.

The acquired land, in addition to the existing Wynn Al Marjan resort development, presents a wealth of opportunities for Wynn Resorts. According to Wynn’s CEO, Craig Billings, the company and its partners are actively exploring “potential future development opportunities” on the adjacent parcels of land. This could include the possibility of additional hotels and hospitality offerings that would complement the Wynn Al Marjan resort, creating a synergistic ecosystem on the island.

Wynn Resorts’ acquisition of the Marjan Island land has fuelled speculation about the company’s long-term aspirations in the region. The registration of trademarks for “Marjan Strip” and “Arabian Strip” suggests that Wynn may have ambitions to replicate the success of the Cotai or Vegas Strip in the Middle East. This could potentially involve the management of a diverse portfolio of hotel brands on the island, bringing to life the concept of an “Arabian Strip” that would cater to a wide range of travellers.

Interestingly, Wynn Resorts’ partnership with RAK Hospitality Holding represents a novel approach for the company. Rather than a traditional hotel management agreement, RAK Hospitality is “paying Wynn for what it knows,” akin to a management contract. This arrangement could pave the way for Wynn to manage an entire portfolio of hotels on the island, further expanding its footprint and influence in the UAE market.

Wynn’s CEO, Craig Billings, has emphasized the diverse catchment area that the Wynn Al Marjan resort is expected to attract. He highlighted Europe and India as particularly important markets, noting the substantial wealth and population in these regions, as well as the strong international air connectivity to the UAE. Billings also mentioned that the resort’s catchment area could be even broader than Wynn’s projects in Las Vegas, capitalizing on the UAE’s strategic location and growing appeal as a global destination.

While Wynn Resorts has not provided a specific timeline for obtaining a gaming license in the UAE, the CEO expressed confidence in the ongoing progress. The recent issuance of the UAE’s first lottery license and the publication of its gaming regulations suggest that the regulatory framework is evolving, paving the way for Wynn’s licensure in the near future.

In related news the company announced its Q2 results showing:

Revenues of $1.73 billion

Adj EBITDA: $571.7 million

Adjusted EBITDA Margin: 25.7%, down from 27.4% in the same quarter last year

Market Capitalization: $8.17 billion