Posted: Aug 30, 2021 7:52 am
Last updated: August 30, 2021, 11:39 am.
According to operator Genting Berhad, Resorts World Las Vegas achieved a daily profit of $ 650,000 before interest, taxes, depreciation and amortization (EBITDA) in the first week of business.
Resorts World Las Vegas, seen here, started off strong. Owner Genting said the venue had a daily EBITDA of $ 650,000 for the first week. (Image: USA today)
The Malaysian industrial conglomerate highlighted the results of its first location in Sin City in its latest earnings report for the second quarter. The $ 4.3 billion Resorts World Las Vegas, the most expensive integrated resort on the Strip in terms of construction costs, opened on June 24.
Additional facilities will be completed and opened in the third and fourth quarters, including the theater at Resorts World Las Vegas, the Zouk Nightclub and the spa. said Genting in his earnings release.
According to the operator, the new venue’s daily revenue for its debut week was $ 2.5 million.
The venue has three hotel towers with a variety of Hilton branded options, retail stores, and more than 40 restaurants.
Ideal timing for Resorts World Las Vegas
With the opening of the newest integrated resort on the Strip on June 24th, Genting was able to derive seven days of EBITDA and sales for the venue from its quarterly results for June.
While the operator didn’t release an update on the venue’s third-quarter performance, the June 24th debut is timing well. That’s because Nevada’s Gross Gaming Revenue (GGR) hit an all-time high in July, with 3.3 million tourists flocking to the Las Vegas area last month, up from 2.9 million in June.
Occupancy at Resorts World Las Vegas was 71.2 percent for the first week at an average daily rate of nearly $ 240, Genting said.
If the pace of the first week is maintained, Resorts World Las Vegas would have annual sales of $ 900 million and EBITDA of $ 240 million. Before the venue opens, analysts predict that the new integrated resort will not fully ramp up on an EBITDA basis until 2024. They also predicted that it would take this long for the property to reach its optimal capacity of 85 to 90 percent.
The Genting venue, the first re-embossed property on the Strip in over a decade, is located on the northwest end of the Strip, where the Stardust Casino was previously.
Genting plans
A potentially faster run-up to and road to profitability for Resorts World Las Vegas could be an integral part of Genting’s plans to potentially introduce a U.S. holding company and list that stock in New York.
In the US, the Malaysian company owns 100 percent of Resorts World New York City (RWNYC) and almost half of Resorts World Catskills (RWC) in New York State, in addition to the Strip venue.
These assets could be combined with Resorts World Bimini Resort and Marina in the Bahamas and 30 acre property in Miami to create a US public company.
