Lotte Tour says Jeju Dream Tower casino enters 'utilisation phase'
Lotte Tour Development says casino growth at Jeju Dream Tower has moved beyond its ramp-up phase and entered a new “utilisation phase” from January 2026, as rising awareness of the integrated resort continues to drive revenue, gaming volumes and visitation.
According to an investor relations presentation uploaded to the company’s website on 15 June, Lotte Tour defined the period from October 2023 to December 2025 as a “Ramp-Up Phase”, during which market awareness of the property was established. The company said that growing recognition of Jeju Dream Tower has now supported its transition into a “Utilisation Phase” beginning in January 2026.
The presentation stated that the casino had entered the utilisation stage “through increased awareness” after passing through the 2024-2025 ramp-up period.
Casino revenue and gaming volumes continue to grow
Jeju Dream Tower’s casino net revenue rose 40.3 per cent year-on-year to KRW118.6 billion (US$78.5 million) in the first quarter of 2026, from KRW84.5 billion (US$55.9 million) a year earlier.
Lotte Tour described the result as evidence of “continued solid revenue growth” and highlighted the year-on-year increase despite the first quarter traditionally being a seasonal low period.
The company also pointed to casino drop as a clearer measure of underlying demand because it excludes fluctuations in hold rates.
“Casino drop is a clear indicator of demand and seasonality excluding hold-rate volatility,” the presentation said.
Total casino drop rose 35.0 per cent year-on-year to KRW650.5 billion ($430.3 million) in the first quarter, compared with KRW482.0 billion ($318.8 million) in the prior-year period.
The presentation noted that seasonal effects became increasingly visible after awareness of the property expanded, stating that while seasonality had only a limited impact during the initial ramp-up stage in 2024, peak-season effects became more pronounced from 2025 onwards.
Visitor numbers rise through May
During the first several months of 2026, casino activity continued to rise, according to monthly operational data. The number of people who visited the casino each month was 53,000 in January and 54,000 in February. It then dropped to 44,000 in March before rising to 59,000 in April and 63,000 in May.
Casino net revenue amounted to KRW33 billion ($21.8 million) in March before rising to KRW49 billion ($32.4 million) in April and remaining at KRW49 billion ($32.4 million) in May.
Total casino drop increased from KRW173 billion ($114.5 million) in March to KRW238 billion ($157.4 million) in April and KRW257 billion ($170.0 million) in May.
During 2025, monthly casino visitation reached as high as 59,000, while total monthly casino drop peaked at KRW293 billion ($193.8 million), according to the investor presentation.
Group revenue and profitability improve
At group level, first-quarter consolidated revenue rose 28.1 per cent year-on-year to KRW156.2 billion ($103.3 million), compared with KRW121.9 billion ($80.6 million) in the first quarter of 2025.
Casino operations remained the primary growth driver, with segment revenue increasing 40.3 per cent to KRW118.6 billion ($78.5 million). Hotel revenue rose 27.9 per cent to KRW18.0 billion ($11.9 million), while travel revenue declined 16.2 per cent to KRW18.3 billion ($12.1 million).
Operating profit more than doubled to KRW28.8 billion ($19.1 million) from KRW13.0 billion ($8.6 million) a year earlier, representing growth of 121.0 per cent. Operating margin improved to 18.4 per cent from 10.7 per cent.
Lotte Tour attributed the improvement primarily to the sharp increase in casino revenue, describing it as a significant enhancement in profitability.
The company nevertheless reported a net loss of KRW7.5 billion ($5.0 million) for the quarter, an improvement from a loss of KRW23.7 billion ($15.7 million) in the prior-year period.
Grand Hyatt Jeju sustains high occupancy
The investor presentation showed Grand Hyatt Jeju recording occupancy of 87.6 per cent in April and 87.3 per cent in May 2026, while average daily room rates stood at KRW254,000 ($168) and KRW261,000 ($173), respectively.
Lotte Tour said first-quarter hotel revenue growth was achieved despite an increase in internal transactions linked to a higher proportion of casino customers staying at the property, suggesting growing integration between the resort’s gaming and hotel operations.
The company said hotel occupancy reached 76 per cent during the first quarter, reflecting a substantial improvement compared with the same period a year earlier.
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