Bain Capital has acquired control of Inspire Entertainment Resort on Yeongjong Island, South Korea's largest integrated resort, following financial troubles faced by its previous owner, Mohegan Gaming & Entertainment (MGE). MGE Korea, the South Korean subsidiary of Mohegan, defaulted on a $275 million loan in November 2021, leading to Bain Capital's intervention.
The resort, located near Incheon International Airport, covers 461,661 square meters and includes three five-star hotels with 1,275 rooms, a 15,000-seat performance arena, an indoor water park, and a large convention center. It is also the largest foreigner-exclusive casino in South Korea.
Despite a $1.6 billion investment, MGE Korea has struggled financially since the resort's opening in January 2023. By September, it reported revenues of KRW 219 billion ($152 million) but incurred a net loss of KRW 265.4 billion ($152 million). The resort's operating loss for the fiscal year ending September 2024 was KRW 156.4 billion ($108 million).
Bain Capital's acquisition was triggered by MGE's inability to meet its loan obligations. As a result, the resort's name has been changed from Mohegan Inspire Entertainment Resort to Inspire Entertainment Resort. During a recent earnings call, MGE's COO, Ari Glazer, confirmed the transition and noted that Bain Capital had taken control of MGE Korea's shares.
Despite the ownership change, daily operations at the resort will remain unaffected. Mohegan Inspire officials stated that there would be no immediate changes to the executive team, and Bain Capital assured that employees and business functions would continue as usual.
Bain Capital is committed to the long-term growth of Inspire, aiming to strengthen its market position. The firm expressed confidence that its industry expertise and collaboration with management would enhance operational stability and drive growth.
With a history of successful investments in South Korea, including companies like Carver Korea and Hanwha Advanced Materials, Bain Capital plans to improve Inspire's financial performance and elevate its status as a premier entertainment destination in Asia.
