Hoiana predicted to generate $470m of annual EBITDA

By Violeta Prockyte

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.  

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