◆ Drop holds above 200 billion won; what a 22.6% hold rate shows
Lotte Tour Development said Monday that its casino and hotel businesses generated a combined 63.492 billion won in revenue last month. The casino led the gains: April casino net sales totaled 48.842 billion won, up 48.5% from a year earlier.
Key indicators for casino performance include visitor numbers, drop (the amount customers exchange for chips) and the hold rate. The casino logged 58,534 visitors in April, averaging 1,951 a day, underscoring a steady mass-market customer base. Table drop came to 205.339 billion won, remaining firmly in the 200 billion won range.
Industry attention has focused on the 22.6% hold rate, which reflects the share of chip exchanges retained as revenue. The figure is approaching the average hold rate of nine large integrated resorts in Macau’s Cotai area (26.1% as of 2025), suggesting improved table efficiency and that VIP marketing is gaining traction.
◆ Foreign guests top 77%; casino-hotel cycle strengthens
Casino growth has been supported by the hotel business at Grand Hyatt Jeju. Hotel revenue was 14.65 billion won, and occupancy rose to 87.6%.
The share of foreign guests climbed to a record 77.3%, up from 65.7% in April last year. With more flights and more independent travelers, foreign hotel guests have increasingly flowed into the casino, reinforcing the resort’s stay-and-play model.
◆ After losses, operating leverage comes into view
Lotte Tour Development opened during the pandemic in late 2020 and faced heavy fixed costs, including interest and operating expenses, as travel routes were restricted. The company has since entered a clearer turnaround, following first-quarter revenue of 156.7 billion won and cumulative revenue of 220.2 billion won from January through April.
Casinos and hotels require large upfront investment and carry high fixed costs, but once they pass break-even, much of additional revenue can flow to operating profit through operating leverage. Experts say Jeju Dream Tower has moved into that phase.
A company official said demand tied to the Labor Day holiday began to be reflected from late April. During the May Labor Day holiday period, the resort sold as many as 1,550 rooms a day out of 1,600, effectively running near full occupancy, the official said. The official added that the strong run is expected to continue through midmonth even after the golden holidays in South Korea, China and Japan end, raising expectations for another earnings surprise.
* This article has been translated by AI.
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