Hann Resorts’ founder Dae Sik Han says that the $200 million-plus IPO for his company is out of a desire to not “slow down all of this development,” noting that “it’s much better to go to this public market”.
The executive was speaking on the Thought Leaders with Cathy Yang program on One News.
When asked about his comments during an interview two years ago at the ASEAN Gaming Summit regarding the timing of the IPO, Han noted:
“I’ve been thinking about this listing for a couple of years. And there should be compelling reasons why I have to go for an IPO. Right now, the most important this is I have a lot of plans in place for future expansion. If I don’t go for an IPO right now, I could have 100 percent ownership of my company. [But] in two to three years, what is going to be the value of the company?”
Han indicated that the company has already spent some PHP50 billion ($873 million) for its Hann Casino Resort, with further plans for PHP40 billion ($700 million) in investment in the next project. Regarding the Hann Reserve, in New Clark City, the executive noted that the investment “is going to be much, much bigger than that”. Speaking at the ASEAN Gaming Summit in 2023, Han noted that some $4 billion could be expected to be invested over the coming 10 years in the project.
A series of loans, coupled with the proceeds from the IPO, and expected revenue from operations are set to help fund the building of an InterContinental and Novotel hotel brands – totaling over 1,000 keys, while also funding Hann Reserve’s development. And while the master plan is extensive, the first golf course on the property “is expected to open by the end of this year”.
A second golf course, two of the three 18-hole courses that will grace Hann Reserve, “is expected to open at the end of next year (2026)”.
Segmentation
Han is very adamant about how the golf angle differentiates the property from its competitors – particularly IRs which have spent millions on entertainment facilities, but lack the space for a luxury golf course.
And the tie in between golf and gaming is apparent from the tee-off, with Han noting that golfers are prone to bet on the game – meaning they will easily transition such propensity to the gaming floor. He notes that while a concert with 1,000 ticket holders will have a turnover ratio to gaming of “less than 10 percent, for golfers “I’m very confident to say it’s more than 60 percent”.
And the company overall knows how to cater to its various clientele. “As far as headcount is concerned, around 70 percent of them are local and around 30 percent are foreigners. And around 95 percent of these 30 percent are Korean. But as far as revenues are concerned, it’s something like 50/50.”
But golf is not the only thing expected to drive visitors to his 450-hectare property. Given his Korean background, Han is banking on the K-experience to also drive continued growth. And the targeting is “to use golf for the luxury market and this Korean experience for the mass market”.
The online segment is also important, as it provides the ‘omni-channel’ experience – bridging online and offline. Having launched its Hann Live Online platform earlier this year, with hopes for up to 500 e-casino games by the end of the year, leveraging the growth of the online gaming market which “itself still has room to grow further”.
And gaming overall will continue to be the lifeblood of the company – with Han indicating that around 85 percent of overall revenue comes from the segment.
Even calls for a possible ban on online gaming in the Philippines do not threaten the company’s expansion, with the Chairman and CEO noting “whatever I’m doing right now is not only about online – it’s about online/offline together […] so it won’t affect any of my plan (regarding the proposed ban)”.
