US tribal gaming operator Mohegan Gaming & Entertainment says its US$1.6 billion South Korean integrated resort development, Inspire Entertainment Resort, remains on track for a late 2023 launch despite concerns over global supply chain issues and related cost blowouts.
Speaking on the company’s earnings call following release of its financial results for the June quarter, Mohegan CEO Ray Pineault acknowledged ongoing challenges in progressing the project but said he wasn’t expecting Inspire to experience any major delays to its current construction timeline.
“Obviously there is a challenging environment when you think about the [global] supply chain issues,” he said. “It’s something we are in constant contact with our general contractor in monitoring our pre-opening expenses and we continue to look at ways to make sure we keep that project on track and on budget.”
Construction of Inspire resumed in February after Mohegan completed financing and Pineault said progress since then has been rapid.
“The concrete structures for the three hotel towers continue to develop at various stages between Levels 8 and 12 and installation of the aluminum curtain wall has commenced,” he said.
“The steel structures for the casino, convention center, retail, pool dome and parking garage are at various stages of progress up to Levels 3 and 4. Level 3 of the arena has also been completed and Level 4 is underway.
“We anticipate a projected completion and opening in the latter part of 2023.”
Mohegan, which operates seven casinos across the United States and Canada, reported a 271% increase in net revenues to US$417.1 million and 134% increase in income to US$59.4 million in the June quarter, while Adjusted EBITDA set an all-time quarterly record for the company of US$120 million.
“This was the first full fiscal quarter of operations without COVID-19 restrictions at MGE Niagara Resorts since the pandemic first closed the property in March of 2020, and Mohegan Digital continues to execute a strategy that is focused on profitability,” said Pineault. “These results reflect the success of Mohegan’s diversification strategies.”