Hoiana predicted to generate $470m of annual EBITDA
Hoiana, Suncity’s Vietnam integrated resort project, is estimated to generate annual EBITDA of $470m once the casino is revamped and phase one is fully implemented.
Based on the performance of a VIP room at Crowne Plaza in Da Nang, Suncity’s other venue, gaming revenue could reach $2.35bn per year. The capital expenditure budget of phase one for Hoiana is $1bn, and it has 1,000 hotel rooms, 140 gaming tables and 330 slots.
The predictions are based on research by Michael Ting, an analyst at Smartkarma. He said: “We estimate that Suncity generated roughly $1.4m GGR per table, per month at Crowne Plaza. Extrapolating this to the 140 tables at Hoiana Phase 1, we estimate that the property can generate roughly $196m of GGR per month or $2.35bn per year.
“Applying a 20% EBITDA margin (double that of Macau), we estimate that Hoiana Phase 1 at full ramp can achieve EBITDA of $470m per year which is at 70% of NagaCorp Ltd.”
However, these contributions to profits won’t happen until the financial year 2022. Ting stated it’s due to ongoing COVID-19 and slow resumption of international travel. Hoiana’s financial success is a long-term commitment.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
