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Wynn Resorts Ltd is building a casino resort in the United Arab Emirates that analysts say could become a meaningful source of cash for the parent company.
A Tuesday research note from CBRE Equity Research focused on the long term financial impact of the Wynn Al Marjan Island project now under construction in Ras Al Khaimah.
Good to Know
Wynn Al Marjan Island sits on an artificial island in Ras Al Khaimah, part of the UAE federation. The site lies about 50 minutes by road from Dubai International Airport.
On Monday, the operator announced the topping out of the hotel tower, which has now reached the 70th floor. The milestone places the project firmly into its next phase as the region prepares for its first regulated casino resort.
Wynn Resorts Ltd serves as the parent company of Wynn Macau Ltd and holds a 40 percent equity interest in the UAE project. Marjan LLC and RAK Hospitality Holding LLC serve as the other partners. In addition to its equity position, the casino group will collect ongoing management and licence fees.
CBRE analysts Colin Mansfield and Connor Parks said the project stands out due to how cash flows reach the parent entity.
They wrote:
“Wynn Al Marjan Island could eventually be the largest payer of fees [to Wynn Resorts], signifying its importance for the equity narrative as it can directly fuel shareholder returns.”
They added:
“The licence and management fees should flow directly to the parent entity, bypassing subsidiaries that have their own debt service and capex needs.”
The analysts also said:
“Therefore, it is 100-percent accretive to Wynn Resorts’ ability to fund shareholder returns.”
That structure separates the UAE project from capital demands tied to other regional operations, including Macau.
Wynn Resorts holds an exclusive casino licence for Ras Al Khaimah with a renewable term of 15 years. Analysts see the licence as a core asset given the limited competition framework planned for the market.
CBRE estimates annual gross gaming revenue could range from US$1.00 billion to US$1.66 billion once operations stabilize. The base case assumption used by the firm sits at roughly US$1.33 billion per year.
Those figures place Wynn Al Marjan Island among the more meaningful single asset contributors within the global Wynn portfolio, especially from a fee and cash flow perspective.