Wynn Resorts Bets $5 Billion On The World’s Newest Themed Entertainment Hub

Construction of deluxe resorts is nothing new in the United Arab Emirates. The Middle Eastern country is already home to almost every leading luxury hotel chain with new ones on the way from global giants such as St. Regis and Ritz-Carlton, as well as boutique brands like Nobu, Six Senses and even one themed to crystal manufacturer Baccarat. However, one resort is generating even more buzz than the others.

It isn’t in Dubai or Abu Dhabi, the most well-known of the seven Emirates, or states, that comprise the UAE. Instead, it is the new flagship of the Emirate of Ras Al Khaimah which is much more rural than its glitzy neighbors.

Ras Al Khaimah was previously best known for pearl-diving, its ceramics business and a sweeping mountain range with a 3,000 year-old fort which was the last line of resistance against British forces in 1819. After the invaders took control of the fort, the seven Emirates fell into British hands and remained there until the UAE finally gained independence in 1971. The discovery of oil in the 1950s led to huge riches flowing into the region and as the reserves began to run out, the Emirates turned to leisure to diversify.

Abu Dhabi has Yas Island with its Ferrari, Warner Bros. and SeaWorld theme parks, whilst Dubai’s palm-shaped island is where you find Aquaventure, the world’s largest water park. It sets a high barrier for Ras Al Khaimah’s cog-shaped Al Marjan Island but this hasn’t deterred it.

Rising from the sandy shores of the man-made island is the first site outside the United States and Asia of gambling giant Wynn Resorts. When complete, a monolithic glittering golden tower containing 1,542 rooms will soar more than 300 meters and be surrounded by lush grounds, swimming lagoons and a marina.

Wynn is making a $5.1 billion bet on the Middle East market and early indications suggest that it is on to a winner. Since the development was announced in January 2022 it has fueled a local real estate boom as well as plans for rival world-class entertainment venues nearby. The Wynn isn’t even slated to open until 2027 so it shows how seriously it is being taken.

There is good reason why the resort has sparked a gold rush. Bill Hornbuckle, chief executive of Wynn’s chief competitor MGM Resorts, put it best when he recently described Dubai as “Las Vegas on steroids. In 1985 it was desert and literally 35 years later it’s this megatropolis with three million people.” It is no exaggeration.

Just as the Strip cuts through Las Vegas, Sheikh Zayed Road runs through the heart of Dubai and many of the city’s major leisure attractions are a stone’s throw away from it.

At one end is a complex of theme parks including ones based on Lego and Dreamworks movies such as Shrek, How To Train Your Dragon and Kung Fu Panda. Heading further towards downtown there’s the palm-shaped island, a mega mall with an indoor ski resort, an illuminated garden (imagine a static version of Disney’s Main Street Electrical Parade) and a towering picture frame where visitors get sweeping views of the city from its peak.

Next up is the silvery egg-shaped Museum of the Future which also shares similarities with another Disney attraction – the futuristic Epcot park. Then comes the main event – the world’s tallest tower which has the world’s largest mall at its feet. The lagoon at the exit to the mall even features a spectacular fountain show developed by WET Design, the company behind the Bellagio fountains in Las Vegas.

As we have reported, Dubai is filled with American restaurants including New York City cupcake vendor Magnolia Bakery, Applebee’s, Buffalo Wild Wings, Chuck E. Cheese, Dickey’s Barbecue Pit, IHOP and Orlando-based casual dining chain Tony Roma’s, once owned by Clint Murchison Jr., founder of the Dallas Cowboys. Many of them line Sheikh Zayed Road and, just like in Las Vegas, the same goes for extravagant hotels, which are often attractions in themselves.

One hotel is themed to Aspen, with rooms which resemble ski lodges, while another features a restaurant where diners sit around a circular table surrounded by projection screens which immerse them in futuristic worlds as they eat avant garde dishes. Dubai even shares the similarly arid climate of Las Vegas which explains why much of its entertainment is indoors.

All of the signage in the city is in English and you’d be hard pressed to find someone who doesn’t speak English as a staggering 88.5% of the UAE’s 10.2 million residents are expats. There is however one big difference with Las Vegas.

Until recently, there was a Caesar’s Palace in Dubai but it had no casino and the same goes for its lavish Atlantis resort which looks from the outside like its namesake in the Bahamas but lacks its sprawling gaming floor. The UAE’s official religion is Islam, which forbids gambling so casinos have been banned in the country. Until now.

When the Wynn Al Marjan Island was announced it made a splash in the Gulf with the announcement that a casino would be part of the complex. In September 2023, the UAE announced the formation of a new commercial gaming authority called the General Commercial Gaming Regulatory Authority (GCGRA) which was assigned exclusive jurisdiction to regulate, license and supervise all commercial gaming activities and facilities. It soon rolled the dice.

Last month, Wynn announced that the GCGRA had awarded it the UAE’s first commercial gaming operator’s license and it is planning to make the most of it.

The Wynn faces stiff competition as Ras Al Khaimah is already home to the world’s only themed Hampton Inn which, as we have reported, looks more like a Disney or Universal Studios hotel then a mid-range property. Nearby there’s a palatial Doubletree with a private beach and pool complex to rival a Las Vegas resort.

At the top of the scale is the Waldorf Astoria which looks like an Arabian palace as its soaring sand-colored central tower is dotted with arched windows and ornate balustrades. Inside it’s a mix of Middle Eastern opulence and an Art Deco homage to the chain’s heritage.

The lobby is lined with sparkling white marble and littered with glass display cabinets containing golden animal models made by local artisans. A mosaic of gold coins hangs on the wall and a giant golden carriage clock stands in the middle in a nod to the one which graced the lobby of the hotel’s New York namesake.

This inspiration carries through onto the elevator doors as they are covered with the same kind of gold and white geometric designs which were popular in the 1930s. The bathrooms are equally Art Deco with dark marble counters and black-and-white checkerboard floor tiles whilst the rooms exude excess. Chandeliers formed from golden twigs hang from vaulted ceilings embossed with Arabic designs in relief whilst turquoise sofas are set into alcoves surrounded by arches.

Its leisure facilities look like they have come from a Caribbean resort. There’s an infinity pool, a lagoon pool with two slides and a stretch of sandy beach with a castaway theme right down to its weather outlook system – a coconut hanging from a branch next to a sign telling visitors what conditions to expect based on the appearance of the shell.

The Wynn appears to be going for a different look. The sleek shimmering hotel will have a 225,000 square feet gaming floor as well as 130,000 square feet of shops and 145,000 square feet of meeting space. There will be 16 restaurants, six bars, a private beach and a marina. It will be Wynn’s first-ever beachfront resort and will also feature 297 suites, six townhouses, and 22 villas. Wynn reportedly employed more than 90 architects, designers and creatives to oversee development of the resort and it shows.

Concept art of the property shows that guests are set to get a regal sense of arrival thanks to a colossal cream-coloured Roman-style stone arch at the entrance flanked by massive marble columns and golden falcons standing next to the doorway. The sun-like symbol set into arch above the doorway is reminiscent of the entrances to Grande Dame hotels like the George V in Paris and the Beverly Wilshire, made famous by the film Pretty Woman.

The concept art shows that the Wynn’s lobby will be equally flashy with golden columns, terracotta-colored sofas and more statues of falcons illuminated by traditional Arabic lamps hanging from ceiling. No expense has been spared and crystal models of peacocks even adorn the entrance to the bar. It doesn’t come cheap.

Wynn has a 40% equity interest in the project with the remainder held by its local partners, RAK Hospitality Holding and Al Marjan Island LLC. The $5.1 billion construction cost, including land, capitalised interest and fees, is expected to be funded with 53% equity and 47% debt. It explains why Wynn is raising a $2.4 billion debt facility which is due to close by the end of the year and is already “oversubscribed with strong demand from local and international lenders,” according to the company.

So far Wynn has contributed $532.6 million of cash to the project and forecasts that its remaining share of the equity required for construction comes to between $800 million and $875 million. It seems to be a safe bet.

Around a third of the world’s population lives within a four-hour flight so it helps that the resort is within a 50-minute drive from the major international airport in Dubai. JP Morgan analyst Joseph Greff added that the resort’s core target markets represent about 25% of the world’s population, 20% of global GDP and nearly 20% of the world’s millionaires. The Wynn won’t just appeal to them but also many of the local residents who aren’t so wealthy.

The fourth-largest country of origin of UAE residents is the Philippines at 6.9% of the total. According to data from TGM Research, a massive 38.9% of people in the Philippines bet on sports in the past 12 months.

The result of this is that Wynn reportedly expects gross gaming revenue of $1 billion to $1.66 billion, operating revenue of $1.375 billion to $1.875 billion, and adjusted underlying income from the property of $500 million to $800 million, implying 26% to 43% margins. “We’re excited for this opportunity,” said Max Tappeiner, president of Wynn Resort Al Marjan, at the recent ‘Future of Ras Al Khaimah’ conference. He added that “there are only three major gaming markets in the world right now, and we think this could become the fourth.”

As anyone who has been to Las Vegas knows, with casinos come attractions. Back in 2005, 5% of all visitors to Las Vegas went to see shows run by avant-garde circus show operator Cirque du Soleil. At the time Cirque only operated O, Mystère and Zumanity but its tally of shows has risen to five since then.

Soon after that, Dubai made a play for Cirque as we revealed in the Mail on Sunday. In August 2008 Dubai investors Istithmar World and Nakheel each bought 10% of the business for an estimated $400 million putting a $2 billion valuation on Cirque. However, it didn’t lead to the development of any permanent shows in Dubai as the financial crisis led to Cirque’s co-founder Guy Laliberté reportedly reclaiming half of the stake after just five years.

Nevertheless, Cirque still tours in the UAE as we have reported and Dubai ended up with a permanent show developed by one of the troupe’s most famous directors, Franco Dragone. Called La Perle, it bears more than a passing resemblance to Cirque’s water-themed extravaganza O in Las Vegas which was also directed by Dragone.

Themed to the UAE’s heritage in pearl diving, it is a son et lumière spectacular with a soaring screen set behind the stage and scenes beamed onto the borders between the banks of seats. At one point the projections make it look like the cavernous auditorium is made from giant rotating cogs and at another they show skyscrapers rising up to give the impression that the audience is in the middle of a metroplis. Performers swing from lampposts suspended from above as pin-sharp projections turn the stage into city streets followed by a marble floor, a grassy landscape with autumn leaves blowing in the wind and an ocean which ripples.

Suddenly fog rolls in, fountains spout up from the sides of the stage, sprinklers above signal the start of a storm and then comes the main event. Waterfalls emerge from the rafters gushing down onto the floor of the theater as the stage below slides away to reveal a pool. It sets the scene for high diving stunts and aerial acrobatics from performers attached to rigging which enables them to appear to glide on the water and emerge from it with pearls.

The show uses every trick in the book from fake snow (actually soap suds) raining down on the audience to towering puppets walking in, and acrobats swinging down with a huge arc of water spray fanning out from their feet behind them. Just when you think it can’t surprise even more it does. The stunts start with acrobats somersaulting on a thin strip of springy tape and the highlight comes when a giant orb is lowered from above and suspended in mid-air. Four motorbikes race around the inside of it like an enclosed wall of death. They weave in and out of each other’s path almost on their sides and upside down in a loop-the-loop.

La Perle is far from the only show in Dubai. There’s even one outside the Festival City Mall. Called IMAGINE, it rivals anything at Disney’s parks but plays on a lagoon several times a night for free. The show features flamethrowers, multi-colored fountains and lasers synchronised to inspiring scenes beamed onto a 36-storey hotel and three screens formed from fountains which fan out into a fine mist. All the effects are timed with each other so when a character projected onto the hotel appears to throw something into the lagoon a fountain launches into the air at that precise moment to make it seem like the object has landed there.

Nevertheless, there is still great potential for growth in the Dubai show scene. During the day the temperature surges to more than 100 degrees but at night it dips below 90 making it conducive to night time entertainment. So it is perhaps surprising that Dubai lacks a dedicated theatre district like Broadway in New York or London’s West End. Instead, Broadway shows are performed in the opulent Dubai Opera which will soon have a string of new competitors.

Inside the Wynn will be a theater featuring bespoke shows. The star attraction in the hotel’s Las Vegas counterpart is called Awakening which was also originally designed by Dragone and features avant-garde acrobatics and huge puppets. Outside is the Lake of Dreams show featuring footage projected onto a waterfall and a cast of animatronic characters including a 30-foot tall frog which sings and dances. The Wynn Macau is no exception as it is famous for its synchronised fountains. Then come the artists who take up residence in Wynn’s hotels.

The Wynn Encore Theater in Las Vegas has attracted shows like Spamalot and Avenue Q as well as a glittering array of acts. Robbie Williams, Whoopi Goldberg and country singer Garth Brooks have all played there whilst Beyoncé held her I Am…Yours concert residency there in 2009.

Mindful that the Wynn in Ras Al Khaimah could attract a similar caliber of acts, other Emirates are stepping up their game. The UAE government is awarding one land based gaming license per Emirate so more mega resorts are on the way.

MGM Resorts has already submitted a proposal to the UAE government to secure a casino operating licence in Abu Dhabi. In September its chief executive Bill Hornbuckle explained that “the way it will work is the federal government in Abu Dhabi will approve it, we’ve applied for it and hopefully we’ll win the licence there.” That’s just the start.

Earlier this year Dubai awarded a construction contract for a $2 billion MGM mega-development which will feature three of its brands. The futuristic-looking complex will house MGM, Bellagio and Aria resorts and in the middle of it all will be a smaller version of the iconic sphere in Las Vegas. It will have 300 seats, compared to the 18,600 capacity of its counterpart in Las Vegas, but the venue could be almost as tall as initial plans had the sphere as part of a 110-meter high entertainment tower

MGM is planning to build the venue inhouse and it is unconnected to Sphere Entertainment Co which owns and operates the one in Las Vegas. It too is putting its chips on the UAE and three weeks ago announced that its first international outpost will be in Abu Dhabi. The exact location of the Abu Dhabi Sphere hasn’t yet been revealed but concept art shows it on Yas Island.

“By embracing cutting-edge entertainment like Sphere, we’re not only elevating our global profile but also setting new standards in immersive experiences and cultural offerings,” said His Excellency Mohamed Khalifa Al Mubarak, chairman of Abu Dhabi’s Department of Culture and Tourism.

Wynn isn’t resting on its laurels and in August bought 70 acres of additional land on Al Marjan Island for future development. It has everything to play for.

Not long ago prices per square foot on the island were 300 dirhams ($82), but now they are nearly three times that. A typical four-bed villa costs 6 million dirhams ($1.6 million), while top-end luxury houses can reach 40 million. There is a strong pipeline of properties on the way.

British auto maker Aston Martin has partnered with Saudi Arabian developer Dar Global to design the interiors of luxury homes that are part of a $250 million beachfront residential community on the island which is due to be completed by 2028.

In September Matthew Amlot, one of the Middle East’s most skilled journalists, broke the news that luxury developer Source of Fate is launching with a near 10 billion dirhams ($2.7 billion) pipeline of new developments including three residential projects on Al Marjan Island. He added that the increase in prices there is a direct result of the announcement that it will be the location of the UAE’s first gaming resort.

Amlot is the editorial director of the Middle East’s leading business magazine Arabian Business which also recently reported that Ras Al Khaimah is hoping to increase visitor numbers to 3.5 million by 2030, up from 1.2 million last year. It is laying a solid foundation for this growth.

There are currently only six hotels on the island with a total of 3,052 rooms along with around 3,000 apartments. In contrast, Las Vegas has almost 155,000 hotel rooms. That gap is narrowing as 12 hotels are in the planning stages in Ras Al Khaimah along with seven in construction, according to CoStar, a London-based provider of real estate data and analytics. More hotels means more competition and even more entertainment opportunities.

In August gaming giant Las Vegas Sands reportedly filed a trademark for use in the UAE of “Venetian” – the name of its flagship resort brand.

For all these reasons, the UAE is forecasting a sharp boost to its economy. From now until 2027 its GDP is expected to grow by 4.3% annually, tourist arrivals by 8.3% and international tourism receipts by 8.1%. The country’s average tourism spend per visit already comes to $1,414 and gaming spending should drive that up even higher. A report in June by real estate consultancy CBRE predicted that the UAE’s gaming industry could ultimately yield upward of $8.5 billion in annual revenue and if so it really will have hit the jackpot.