Resorts World Las Vegas Generates 0,000 in Daily EBITDA During First Week
Resorts World Las Vegas notched $650,000 in daily earnings before interest, taxes, depreciation and amortization (EBITDA) during its first week in business, according to operating Genting Berhad.
The Malaysian industrial conglomerate with an expansive gaming empire spanning multiple units highlighted the results for its first Sin City venue in its recent second-quarter earnings report. The $4.3 billion Resorts World Las Vegas, which is the Strip’s most expensive integrated resort in terms of construction costs, opened on June 24.
The venue has three hotel towers with various Hilton-branded options, retail stores and more than 40 dining options.
Additional amenities will be completed and opened in the third and fourth quarters, including The Theatre at Resorts World Las Vegas, Zouk Nightclub and the Spa,” said Genting in its earnings release.
Daily revenue at the new gaming venue amounted to $2.5 million during the debut week, according to the operator.
Ideal Timing for Resorts World Las Vegas
With the newest Strip integrated resort opening on June 24, Genting was able to derive seven days worth of EBITDA and sales from the venue on its June quarter results.
While the operator didn’t provide an update on how the venue is performing in the third quarter, the June 24 debut amounts to some good timing because Nevada’s gross gaming revenue (GGR) hit an all-time high in July and 3.3 million tourists flocked to the Las Vegas area last month, up from 2.9 million in June.
Occupancy at Resorts World Las Vegas was 71.2 percent at an average daily rate of almost $240 during its debut week, said Genting.
If the pace of the first week is maintained, Resorts World Las Vegas would generate $900 million in annual revenue and $240 million in EBITDA. Prior to the venue opening, analysts forecast that the new integrated resort won’t be fully ramped on an EBITDA basis until 2024 and that it will take that long for the property to reach optimal capacity of 85 percent to 90 percent.
The Genting venue, the first newly minted Strip property in over a decade, is situated at the northwest end of the Strip, where the Stardust Casino was previously located.
A potentially faster ramp up and road to profitability for Resorts World Las Vegas could be integral to Genting’s plans to perhaps unveil a US holding company and list that stock in New York.
In the US, in addition to the Strip venue, the Malaysian company owns 100 percent of Resorts World New York City (RWNYC) and nearly half of Resorts World Catskills (RWC) in upstate New York.
Those assets along with Resorts World Bimini Resort and Marina in the Bahamas and a 30-acre parcel of land in Miami could be folded together to create a publicly traded US entity.
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