7 Critical KPIs for Measuring Casino Resort Performance

Long-Term Return Metrics

• The current Internal Rate of Return (IRR) stands at a negative -0.02%.
• A negative IRR means the project’s expected return doesn't yet beat the cost of capital.
• This metric will defintely improve once sustained positive cash flow is achieved.
• The initial investment timing is the primary driver of this early negative reading.

Fixed vs. Variable Exposure

• Fixed monthly expenses are currently listed at $1145 million, which you must cover regardless of occupancy or volume.
• Variable costs are defintely the primary risk, expected to consume 190% of revenue in 2026 if left unchecked.
• This means for every dollar earned, you are spending $1.90 on direct variable inputs that year.
• Controlling variable spend requires tight procurement standards across all ancillary services like F&B and spa operations.

Gaming Floor Yield

• Measure Win Per Gaming Position (WPGP) on a rolling 7-day basis.
• If WPGP falls below $400 per shift, reallocate machine mix.
• Fixed cost allocation for the gaming floor must be covered by 80% of average WPGP.
• Use event space rental revenue to offset low-performing floor segments during slow convention weeks.

EBITDA Growth Justifies Spending

• Projected EBITDA grows from $265 million in Year 1.
• Target Year 5 EBITDA reaches $1,198 million.
• This 4.5x growth trajectory validates aggressive CapEx deployment.
• Use this metric to model future debt servicing capacity accurately.

Disadvantages

• It ignores the high-margin revenue from gaming and dining operations.
• A high RevPAR can mask poor operational efficiency if fixed costs are high.
• The 650% occupancy target mentioned for 2026 requires careful interpretation, as standard occupancy cannot exceed 100%.

Industry Benchmarks

For luxury integrated resorts, the goal is always to achieve a RevPAR significantly above the market average, often by 20% or more. Benchmarks help you validate your pricing structure; for instance, if the Standard King's midweek rate is $180, you need to know if that beats the competition or if you are leaving money on the table.

Disadvantages

• Ignores operational costs like staffing or maintenance.
• Results vary widely based on game type (slots vs. table games).
• Doesn't reflect overall profitability (GOPPAR is better for that).

Industry Benchmarks

Benchmarks for WPGP vary significantly based on location and game mix. In major US markets, a well-run slot floor might see WPGP between $150 and $350 daily, while table games often yield higher per position but require more staff. These targets help you gauge if your game mix is appropriate for your target market.

Disadvantages

• Ignores capital expenditures (CapEx) and debt service costs.
• Can mask poor performance in one area if another (like gaming) is booming.
• Doesn't account for high variable costs, like the 60% F&B Cost of Sales.

Industry Benchmarks

For luxury hotels, GOPPAR benchmarks vary widely based on location and seasonality, but for a full-service resort, you need a number significantly higher than standard hotels to cover the massive fixed costs of gaming infrastructure. Since you have high variable costs, like 70% Gaming Taxes, your target GOPPAR must reflect strong operational leverage. If your GOPPAR lags, it means your 600 rooms aren't generating enough profit flow to support the entire enterprise.

Disadvantages

• Doesn't account for large fixed costs like property depreciation or core staff.
• Can mask operational issues if costs are improperly classified as fixed overhead.
• Jurisdictional Gaming Taxes are often fixed by law, limiting immediate control.

Industry Benchmarks

For integrated resorts, this percentage is highly sensitive to regulatory environments. While F&B Cost of Sales might typically run around 30% to 35% in luxury hospitality, the inclusion of high Gaming Taxes (which you project at 70% for 2026) drastically inflates the total variable burden. Successful operators aim to keep the combined variable load below 55% if possible, though high tax jurisdictions make this tough.

Disadvantages

• It assumes burn rate stays constant, which rarely happens.
• It ignores seasonal swings common in resort operations.
• A high runway number can mask poor unit economics.

Industry Benchmarks

For large capital-intensive projects like a casino resort, benchmarks are less about months and more about milestones. Investors typically look for 18 to 24 months of runway post-major funding to reach sustainable positive cash flow. If your runway dips below 12 months before major revenue stabilization, refinancing risk spikes sharply.

Disadvantages

• Ignores revenue quality (e.g., high-margin vs. low-margin streams).
• Doesn't account for part-time staff or contractors effectively.
• Can be misleading if major capital investments suddenly boost revenue without hiring.

Industry Benchmarks

For integrated resorts, RPE needs to be high because fixed costs, like the physical property and high-end amenities, are substantial. A low RPE signals that your operational expenses are eating into the margins generated by gaming and lodging. You need to compare this figure against direct competitors in major entertainment hubs.

Disadvantages

• Non-gaming margins are typically lower than gaming margins.
• Requires managing complex, diverse operational departments.
• Success relies on attracting non-gambling resort guests.

Industry Benchmarks

For integrated resorts, a healthy mix often targets 40% to 60% non-gaming revenue to demonstrate stability to investors and regulators. Resorts heavily weighted toward gaming (over 80%) face greater compliance costs and volatility risk.