Mohegan Inspire to reach profitability in three years, analysts say

The Mohegan INSPIRE Entertainment Resort held its opening event on March 5.
The Mohegan INSPIRE Entertainment Resort held its opening event on March 5.

Mohegan Inspire Entertainment Resort could outpace rivals, according to CBRE.

South Korea.- CBRE Capital Advisors has forecast that the Mohegan INSPIRE Entertainment Resortthe recently launched casino complex in South Korea, will achieve positive cash flow within its first three years of operation. The resort had a soft opening in November and launched gaming on February 3. It was the first time in almost two decades that a new foreigner-only casino has opened in South Korea.

CBRE analysts Colin Mansfield and Connor Parks foresee a mature annual EBITDA of approximately US$150m with robust margins and debt service coverage in its ramp-up phase. They said the project has access to an estimated US$179m in cash as of December 31, 2023, earmarked for construction payables and preopening expenses.

The report says the casino could have a faster ramp-up than its competitor, Paradise City, due to a less phased opening and a wide range of non-gaming amenities. Analysts believe that Mohegan Inspire can outperform Paradise City because of its greater focus on slots and larger room base. The report expects the average win-per-unit-per-day to be in line with the average in Asia, except for Macau and Singapore, which far exceed casinos in South Korea, the Philippines, Malaysia, and Cambodia.

The casino has over 150 table games, 390 slot machines, and 160 electronic table games (ETG). It has a floor for VIP guests featuring a Guandong-style restaurant. Mohegan Gaming & Entertainment (MGE) posted net revenue of US$425.2m for the first quarter of the fiscal year 2023-2024, up 4.6 per cent compared to the previous quarter.

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