Casinos in South Korea: Paradise Co to begin construction on new hotel
The new hotel is scheduled to open in 2028.
South Korea.- Paradise Co has confirmed plans to begin construction on a new hotel in Seoul in the first quarter of 2025 with a target opening date in 2028. The 18-floor hotel will have approximately 200 suites and five basement levels offering premium services for foreign VIPs. It will cover 13,950 square metres. The cost of the development is estimated to be between KRW500 (US$360m) and KRW550 (US$400m).
The project is part of a broader strategy to attract more international high-rollers. When the company first revealed the project in July, Choi Jong-hwan, Paradise Co’s chief executive, said the objective was to create a hotel that would establish a new standard in the hospitality sector.
In September, a new space specifically for high-rollers opened at the Paradise Casino Walkerhill in Seoul. The casino’s first expansion in nine years increased its size by 17 per cent, from 3,934.60 to 4,587.26 square metres. There are now 112 table games and 213 machine games. The casino operator said it expects sales in the new VIP venue to reach KRW1.32tn (US$952m) by 2026. During the first half of this year, combined sales, including non-consolidated affiliates, amounted to KRW569.9bn (US$410m), with an operating profit of KRW91.2bn (US$66m).
Paradise Co posts net income of US$14.20m for Q3
Paradise Co has reported that net income attributable to shareholders was KRW19.66bn (US$14.20m) in the third quarter of the year. The figure was down 55 per cent year-on-year but up 32.71 per cent when compared to the previous quarter.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) were KRW55.73bn (US$28.35m) down 27.7 per cent year-on-year but up 7.4 per cent sequentially. Overall sales reached KRW268.25bn (US$136.34m), down 6.1 per cent year-on-year, and 1.8 per cent in quarter-on-quarter terms.
Paradise Co recorded casino sales of KRW84.38bn (US$42.89m), down 27.1 per cent in year-on-year terms and down 24.6 per cent sequentially. The decline was mainly attributed to a low hold rate. The soft drop reached KRW1.77tn (US$899.21bn).
Paradise Co operates four venues in its casino division: Walkerhill in Seoul, Jeju Grand on Jeju Island, Busan Casino in the southern port city of Busan, and Paradise City, near the main international airport serving Seoul. Walkerhill’s casino revenue totalled KRW65.8bn (US$33.4m), down 28 per cent sequentially and 33.8 per cent year-on-year.
Meanwhile, Paradise City EBITDA reached KRW37.50bn (US$19m), up 4.9 per cent year-on-year and 49.5 per cent compared to the second quarter of the year. Revenue was KRW146.55bn (US$74.58m), up 10.5 per cent compared to last year and up 11.5 per cent sequentially. Casino revenue amounted to KRW110.29bn (US$56.15m), up 12.8 per cent in year-on-year terms and 7.6 per cent sequentially.
