Mohegan's Inspire Korea resort is experiencing significant operational challenges, potentially risking loan default following underwhelming financial performance in fiscal year 2024.

The $1.6 billion Inspire Entertainment Resort, which opened last March near Incheon International Airport, generated just $163.3 million in net revenue for the year, with fourth-quarter revenue of only $62.2 million.

Key Financial Challenges:

• Casino underperformance with low table hold
• Higher-than-expected operating costs
• Costly marketing campaigns across Asian markets
• Hotel occupancy at just 69%
• Adjusted EBITDA loss of $49.5 million

Gaming Performance:

• Table games revenue: $94.7 million
• Slot revenue: $6.8 million
• Gaming space includes 150 table games, 176-seat electronic gaming stadium, and 373 slots

Despite Mohegan achieving record company-wide net revenues of $1.88 billion (up 13% year-over-year), Inspire's poor performance led to a consolidated EBITDA swing from a $34.5 million profit in FY23 to a $36.1 million loss in FY24.

The property's location, 45 minutes outside downtown Seoul, may be impacting its appeal to foreign visitors, as South Korean nationals are prohibited from gambling at the venue. The company warns of possible default on its Korea Term Loan unless new lenders are secured.

For comparison, Mohegan's other properties significantly outperformed Inspire:

• Mohegan Sun (Connecticut): $589.2 million combined slots and table revenue
• Canadian properties: $210.9 million in gross gaming revenue
• Mohegan Pennsylvania: $196.6 million in gross gaming revenue

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