Jeju Dream Tower records 1.926 trillion won in second-quarter sales, a historic high... growth expected to continue into July

*This content was translated by AI.

Jeju Dream Tower Complex Resort achieved its highest-ever quarterly performance by recording 1.926 trillion won in sales for the first half of this year, driven by strong results across its casino and hotel divisions.

Lotte Tourism Development announced on the 1st that it achieved 640 billion won in sales across its two main divisions—casino (net sales) and hotel (standalone basis)—last month.

This represents a 29.4% surge compared to 49.4 billion won in June of last year, marking three consecutive months since April of sales exceeding 600 billion won, already surpassing last year's summer peak season of 185.5 billion won.

The growth momentum of the core cash cow, the casino (Dream Tower Casino), continues to strengthen. Second-quarter casino net sales (total sales minus agent commissions and other deductions) reached 147.088 billion won, a 33.7% increase from 110.038 billion won in the same period last year.

This figure also significantly exceeded the previous record of 139.348 billion won in the third quarter of last year and 142.723 billion won in the fourth quarter.

The number of visitors per quarter rose to 182,872, a 23.2% increase year-on-year and a 21.5% increase quarter-on-quarter. Table drop (the amount of money converted into chips for gaming) also increased by 11.1% quarter-on-quarter to 637.498 billion won.

Notably, the average hold rate (the percentage of table money retained by the casino) for the quarter reached 22.1%, a significant 4.7 percentage point improvement from 17.4% last year. This level is now approaching the average hold rate of 25.1% for the first quarter of 2026 among nine ultra-large complex resorts in Cotai, Macau, which boasts the world's highest profitability, including The Venetian and Galaxy.

Lotte Tourism Development explained, "The hold rate improved significantly due to a substantial increase in the average number of open tables per day driven by rising visitor numbers, as well as an increase in customers staying for extended periods (long stays) of over a week."

For June alone, casino net sales reached 48.722 billion won, a 36.1% surge year-on-year. Visitor numbers (61,146) and table drop (224.585 billion won) also increased by 18.7% and 2.5% respectively, continuing the upward trend.

The hotel division (Grand Hyatt Jeju) also continued its strong sales performance. Second-quarter hotel sales reached 45.478 billion won, a 10.7% increase year-on-year and a 19.3% increase quarter-on-quarter.

A total of 128,600 rooms were sold, achieving an average occupancy rate (OCC) of 88.3%. Notably, foreign guests accounted for 77.3% of all sold rooms, demonstrating that Dream Tower has firmly established itself as an essential tourist destination for international visitors traveling to Jeju.

Hotel sales for June alone reached 15.293 billion won, a 12% increase year-on-year. A total of 43,218 rooms were sold over the month, achieving a room occupancy rate of 90%.

With the foreign guest occupancy rate soaring to 78.2%, rooms used by casino customers averaged 833 per day, a 14.2% increase from 730 rooms per day in the same period last year, accounting for 52.1% of all rooms.

The market is anticipating a strong earnings surprise from Lotte Tourism Development's first-half results for this year. This is because the complex resort business, including casinos and hotels, has a high proportion of fixed costs; once sales exceed the break-even point (BEP), excess revenue largely accumulates directly as operating profit, creating a powerful operating leverage effect.

In fact, considering that when Dream Tower's sales reached 185.5 billion won in the third quarter of last year, Lotte Tourism Development's consolidated operating profit reached 52.9 billion won (with an operating profit margin of 28.4%), market expectations for this second-quarter performance of 192.6 billion won are bound to grow even higher.

A Lotte Tourism Development official stated, "In addition to the record-breaking quarterly performance of Jeju Dream Tower, the cruise ship operations in the travel sector will also be reflected in the second quarter, so we expect both the first-half and full-year results to reach historic highs."

Meanwhile, on the 2nd, KB Securities maintained its 'Buy' investment recommendation and a target price of 28,000 won for Lotte Tourism Development, noting that the company continues to outperform the market despite a slowdown in the global casino market.

KB Securities researcher Choi Yong-hyun analyzed, "Total Macau casino gross gaming revenue (GGR) for June decreased by 12.1% year-on-year and 18.1% month-on-month, influenced by the World Cup event. However, Lotte Tourism Development's sales increased by 36.1% year-on-year during the same period, outperforming the Macau market." He further predicted, "With the peak season effect fully kicking in during July, there is a high probability that the company will record its highest-ever monthly sales."

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*This content was translated by AI.