Mohegan Gaming, the tribal casino operator, expressed confidence that its recently opened integrated resort, Mohegan Inspire in Incheon, South Korea, will achieve positive cash flow by the close of 2024. This optimism was conveyed during the release of Mohegan’s financial results for the fiscal year ending on September 30, 2023. The discussion unfolded in the context of Mohegan Inspire’s soft opening and its subsequent progress.
Soft Opening Details:
Mohegan Inspire commenced its soft opening on September 30, unveiling various components such as three hotel towers, a 15,000-seat multi-purpose arena, MICE facilities, Splash Bay indoor water park, Aurora entertainment street, and multiple INSPIRE-owned restaurants.
Notably, the foreigner-only casino and additional retail spaces are scheduled to open in the coming year.
Current Footfall and Operations:
According to COO Jody Madigan, post the soft opening weekend, Mohegan Inspire has experienced robust foot traffic, with positive indicators in hotel occupancy and strong food and beverage covers, particularly during weekends.
The phased opening approach includes forthcoming additions on the gaming side in early 2024 and additional non-gaming facilities in Q2, contributing to the completion of the project.
Cash Flow Positive Forecast:
Mohegan executives, including CEO Ray Pineault, expressed contentment with the early performance of Mohegan Inspire, citing positive feedback and the successful execution of major events.
The management anticipates achieving cash flow positivity by the conclusion of 2024, signaling confidence in the resort’s future financial success.
Casino License Status:
Mohegan reiterated its expectation to secure the casino license for Mohegan Inspire in the first quarter of 2024. The license approval process is contingent on the operational status and a 5-star rating for associated hotels, both of which are reportedly progressing well.
Customer Feedback:
Early feedback from customers has been positive, particularly regarding the quality of the property and the service provided during significant events. Positive reviews on social media further attest to the appeal of Mohegan Inspire’s non-gaming amenities.
Financial Highlights:
Mohegan reported its highest-ever consolidated net revenues of US$1.67 billion in FY23, with the second-highest Adjusted EBITDA of US$399.9 million. The fiscal strength primarily stems from Mohegan’s domestic properties.
Mohegan Gaming’s strategic optimism surrounding Mohegan Inspire’s financial performance and the expectation of securing its casino license in early 2024 underscore the company’s commitment to the success of its international ventures. As Mohegan Inspire continues its phased opening, balancing gaming and non-gaming amenities, the resort aims to carve a niche in South Korea’s competitive hospitality and entertainment landscape.