Wynn Resorts on track to open Wynn Al Marjan Island in Q1 2027

Neha Soni November 22, 2024

SiGMA news

Wynn Resorts on track to open Wynn Al Marjan Island in Q1 2027

Wynn Resorts said it is on course to open its first integrated resort in the United Arab Emirates (UAE) by the first quarter of 2027.

The company said in an update that the construction of Wynn Al Marjan Island?is progressing as planned. Wynn said 55 percent of the project’s structural concrete is now complete.

With currently 9,100 construction team members onsite, the team is completing one floor per week. The company said it its working towards topping off in December 2025.

Wynn Al Marjan Island promises an unparalleled experience, featuring 1,542 lavish rooms and suites, including 22 exclusive Villa Estates overlooking the newly designed marina. It is set to become the first integrated gaming resort in the Middle East North Africa (MENA) region,

Guests can indulge in a lavish poolscape covering 3.6 hectares, complemented by a diverse range of dining establishments, a world-class theater showcasing bespoke productions, a luxury shopping esplanade, a five-star spa, and a sophisticated meetings and events center crafted for various occasions.

Tax structure and project cost

Wynn Al Marjan Island will benefit from a favourable tax structure that supports its profitability and long-term growth, declared the company. It will operate with a blended tax rate of 10 percent to 12 percent, a tax arrangement comparable to the tax blend for VIP and mass gaming in Singapore, providing a conducive environment for gaming operations.

The total investment for the Wynn Al Marjan Island project has been revised from an initial estimate of $4 billion to $5.1 billion, reflecting adjustments for inflation and market conditions. This budget encompasses land acquisition, capitalised interest, and various fees associated with the development.

Construction is expected to ramp up significantly in the coming months, with a goal to achieve 89 percent of the hard construction costs of approximately $2.7 billion by the end of the fourth quarter of 2024. The resort is expected to open its doors in Q1 2027.

Projected revenue

Wynn Al Marjan Island is anticipated to generate robust revenue, with projections estimating the UAE market size for integrated resorts at approximately $3 to $5 billion. The projected revenue breakdown for the integrated resort indicates that gaming will play a significant role, but non-gaming revenue streams are also expected to thrive. Wynn expects to capture a 33 percent share of this market, boosted by what they term a “Wynn Premium,” which positions them favourably against competitors in the region.

Overall, Wynn anticipates a substantial?contribution to its Adjusted Property EBITDA from this venture, projecting that by 2026, the UAE will account for 20 percent of its total adjusted property EBITDAR, alongside Macau (42 percent), Las Vegas (30 percent), and Boston (8 percent).