The acquisition by US casino giant Wynn Resorts of high-end casino Crown London will boost the company’s regional brand power and build a global database ahead of the launch of its US$5.1 billion Wynn Al Marjan Island, according to CBRE Equity Research.
In a note, CBRE’s John DeCree described the acquisition of the 20-table members-only casino, formerly known as London Aspinalls, as “small but strategically significant” – even if the property itself is not seen generating meaningful cash flow.
“The London VIP casino market had been in decline prior to the pandemic, and we suspect the asset probably doesn’t generate much cash flow (if any) today,” he wrote.
“That said, we view this as a very strategic purchase for Wynn. Aspinalls caters to very high-end VIP gaming customers from London but also internationally, including from Asia, India and the Middle East, making it a very unique customer acquisition tool for Wynn Al Marjan Island.
“Aspinalls hosts a regular Bollywood Night, and India is one of the top feeder markets for tourism to the UAE. This acquisition gives Wynn a flag in a gateway city that should help build the global database and boost Wynn’s brand power in the region ahead of a blockbuster opening in the UAE.
“Importantly, this is a high-end gaming asset with high-intent customers, making it a more deliberate customer acquisition channel relative to a branded hotel strategy or partnership.”
Wynn is due to open its UAE resort in 2027, with the company revealing in a Friday update that development has currently progressed through the 31st floor of the hotel tower.
For analysis on the Crown London transaction by our CEO Andrew W Scott, please click here.
