KB Securities sees growth room at Jeju Dream Tower despite weaker Q3 earnings outlook for Lotte Tour

KB Securities believes Jeju Dream Tower still has room to grow, even though it expects Lotte Tour Development's earnings for the September 2026 quarter to come in below forecasts. The brokerage's analyst, identified as Choi, pointed to rising visitor numbers and scope to improve revenue from gaming tables at the foreigner-only casino.

The cautious earnings view reflects two main factors. One is the VIP rolling table business, which has yet to deliver strong results. The other is weak growth in drop, the amount of cash customers exchange for chips, per visitor. Choi linked that trend to policy changes in China, including a crackdown on undeclared overseas income. In other words, more people are coming to the property, but spending per guest has not risen at a comparable pace.

Despite this, Choi sees further potential for visitor growth. Club membership reached 166,000 in the third quarter, up from 149,000 in the previous quarter. The analyst also noted that casino patrons account for only 50% of hotel occupancy at present. An expected increase in flights between Jeju and Macau, along with new routes from China, could support further growth in arrivals.

The analyst also compared table productivity with Macau. Average daily revenue per gaming table at Jeju Dream Tower is about KRW13 million, against an average of KRW20 million in Macau. Choi cited that gap as evidence of room for improvement, even though the VIP rolling programme has not yet performed strongly. The measure looks at revenue per table per day, separate from visitor counts or drop.

Recent results show the difference between attendance and revenue. Jeju Dream Tower has posted a series of record highs in visitation and casino sales over the past 18 months, and September brought another visitor record. Even so, casino revenue fell sharply that month, with lower hold contributing to the decline, according to earlier reporting by Inside Asian Gaming.