In a recent filing with the Korea Exchange, Lotte Tour’s Jeju Dream Tower reported mixed results for March 2024, with both casino and non-gaming revenues experiencing slight declines after a strong start to the year.
Casino Revenue Insights
Casino revenues for March saw a 7.4% decline month-on-month, totaling KRW22.2 billion (US$16.4 million). Despite this decrease, the figures represent a substantial 263% increase compared to the same period last year. Notably, table game revenues experienced an 8.3% sequential decrease to KRW20.9 billion (US$15.4 million), while machine revenues grew by 10.3% to KRW1.29 billion (US$953,455).
The robust table drop of KRW121.9 billion (US$90.1 million) in March reflects a significant 15.6% rise from February and an impressive 26.5% increase compared to March 2023. These figures highlight dynamic patterns in gaming activities at Jeju Dream Tower.
Hotel Revenue Performance
In contrast to the casino segment, hotel revenue exhibited a decline of 10.2% month-on-month and 4.1% year-on-year, amounting to KRW5.5 billion (US$4.1 million). This decrease underscores specific challenges within the accommodation sector of the integrated resort.
Year-to-Date Analysis
For the first three months of 2024, cumulative casino sales reached KRW70.0 billion (US$51.7 million), showcasing a remarkable 328% surge year-on-year. Conversely, hotel revenue for the same period declined by 5.2% to KRW16.8 billion (US$12.4 million).
Overview of Jeju Dream Tower
Situated as the tallest building in Jeju with 38 floors standing at 169 meters, Jeju Dream Tower is a prominent integrated resort featuring diverse amenities. The facility boasts a retail mall, 14 restaurants and bars, an outdoor pool deck, top-floor skydeck with lounge, two spas, and a robust casino offering.
The casino was relocated from its former home at Lotte Hotel Jeju in June 2021, expanding significantly to over 5,000 square meters. It currently houses 141 gaming tables, 190 slot machines, and 71 electronic table games, catering to a diverse clientele seeking entertainment and gaming experiences.
The recent performance of Jeju Dream Tower presents an intriguing narrative of growth and challenges within its casino and hotel segments. Despite the monthly fluctuations, the year-on-year trends reflect substantial progress in casino revenues, attributed to strategic shifts and enhanced offerings post-relocation.