Wynn Resorts Pledges $900 Million for UAE’s Spectacular Al Marjan Island Venture

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Against the shimmering background of the United Arab Emirates’ landscape, rising majestically from the sands of Ras Al Khaimah, the gem that will be Wynn Al Marjan Island is beginning to take shape. Wynn Resorts (NASDAQ: WYNN) has confidently announced it will self-fund its substantial$900 million share of the ambitious $4 billion integrated resort venture.

As the era of a new decade started, Wynn Resorts committed its minority investor’s stake to the project, putting to rest any whisperings of doubting the company’s financial health. In collaboration with local juggernauts Marjan LLC and RAK Hospitality Holding LLC, as well as Wynn Design and Development at the creative helm, their venture is already turning heads and shaping investment outlooks.

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Analysts at CBRE Credit Research, Colin Mansfield and Connor Parks, affirmed in a recent dispatch to their clientele that Wynn Resorts is more than capable of covering its financial commitment of $900 million without drafting in extensive new debt.

“We anticipate Wynn Al Marjan Island will score a de-leveraging effect for Wynn Resorts when factored into our projected 2026 estimates, dipping to approximately 4.2x gross lease-adjusted leverage at project maturity,” they opined.

Interestingly, the resort is already kicking dust, despite UAE regulators having yet to officially approve casino gaming. Aiming for a grand revealing to the world in early 2027, Wynn Al Marjan Island’s hotel tower might even see its final touch by the late months of 2025.

One question in the minds of many observers is what the potential adoption of multiple casino resorts in the UAE might mean for the gaming landscape, especially if one lands the lucrative Dubai location. However, Wynn Al Marjan Island stands to benefit immensely from a head start in the race.

CBRE’s earlier projections this month assert that the venue might be a revenue-generating powerhouse once it hits its stride. Expected to potentially yield net revenue of $1.8 billion, gross gaming revenue of $1.38 billion, and EBITDAR of $921 million, it could significantly fortify Wynn’s financial landscape.

Wynn’s free cash flow is also set for a substantial bolster, with CBRE estimating it could reach as high as $1.4 billion in 2026, with an 18% FCF margin, setting a new gold standard within global gaming.

Another factor that deserves mention is the investment-grade sovereign credit rating of Wynn’s local partner. Though it might seem far-fetched that Wynn will ever control 100% of the UAE venture, this tidbit of information might prove consequential in the long run.

The sizable funding Wynn Resorts is deploying to bring Wynn Al Marjan Island to fruition might ordinarily cause consternation regarding a business’s credit outlook. However, Mansfield and Parks of CBRE discount any significant leverage concerns in Wynn’s case. The resort already collects between $280 million to $300 million in annual licensing fees from existing properties, a figure likely to swell when the UAE casino hotel graces the skyline.

Should CBRE’s anticipation of the UAE regulatory structure and the resort’s revenue profile transpire, Wynn Resorts will bag a top-tier property in one of the most sought-after international jurisdictions. This could further elevate its already formidable global diversification position, Mansfield and Parks concluded.