Wynn Resorts has completed the funding for its Al Marjan Island resort in the United Arab Emirates (UAE), securing a $2.4 billion (£1.93 billion/€2.31 billion) construction facility from a global syndicate of lenders.
Announced in January 2022, the under-development Wynn Al Marjan Island will be the first integrated resort in the UAE. Initial projections placed the project’s cost at $3.90 billion, but this has since increased to approximately $5.10 billion.
To support the investment, Wynn has sought financial backing from several areas. The final part of this funding is being made available as a secured term loan facility over seven years.
The loan will be combination of US dollars and Arab Emirates Dirham. The bulk of the expected development costs will be in dirham. According to Wynn, it is the largest hospitality financing transaction in the history of the UAE.
Abu Dhabi Commercial Bank and Deutsche Bank acted as joint coordinators of the financing round, while First Abu Dhabi Bank, Emirates NBD Capital Limited and The National Bank of Ras Al Khaimah are formed part of the wider bank syndicate, along with the Sumitomo Mitsui Banking Corporation.
First Abu Dhabi Bank is acting as agent and security agent for the lenders.
Wynn expects topping off in December
Alongside yesterday’s (6 February) funding confirmation, Wynn published an update on the project’s progress. Some 64% of the structural concrete of the main resort tower – up to the 34th floor – has been completed. In November, during the operator’s last update, this work had been 50% complete.
Wynn said the construction team is completing one floor per week, with the aim of topping off in December. Over the past 100 days, the resort tower has grown approximately 140 feet.
When complete, the resort will feature 1,542 rooms and suites. To date, 80% of all rooms have been completed. The exterior façade window glazing is more than 20% complete, while fit out is underway in over 1,120 rooms.
As for the low-rise portion of the building, the concrete and steel structures are a combined 70% complete, at the time of writing. Exterior facades and interior fit, as well as elevator and escalator installation across the property, are also progressing.
Other on-site facilities at Wynn Al Marjan Island will include restaurants, lounges and bars, a nightclub and beach club, shopping promenade, theatre and meetings and events centre.
What about the other possible players in UAE?
Wynn remains the only operator to have secured a casino licence in the UAE. The General Commercial Gaming Regulatory Authority (GCGRA) issued the licence, the first of its kind in the Emirate, in October last year.
The only other licences issued so far are to The Game to operate the UAE’s national lottery and a number of supplier licences to provide gaming machines and technology.
MGM Resorts has also declared an interest in launching in the UAE. CEO Bill Hornbuckle revealed at a Skift event in September that plans are in place for a resort in Abu Dhabi, with a licence application pending.
However, speaking in November, GCGRA chairman Jim Murren said the regulator will take its time with resort licensing. He said the authority is “focused on the operators we have already licensed”.
