Q4 2021 Bally's Corp Earnings Call
Thanks, Brett.
[music].
Good day and thank you for standing by welcome to the Barclays Corporation fourth quarter 2021 year end earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer period in order to ask a question. During this session. Please press the star.
He followed by the number one on your telephone please be advised that today's conference call is being recorded.
If you should require further assistance. Please press star Zero I would now like to turn the call over to Bobby alone Senior Vice President Finance and Investor Relations at Balis. Please go ahead Sir.
Good morning, everyone and thank you for joining us on today's call.
The earnings release and presentation that accompany this call are available in the Investor Relations section of our website.
With me on today's call are Lee Fenton, Chief Executive Officer, George <unk>, Our President retail Robeson Reeves present interactive seed cap Chief Financial Officer.
Before we begin we'd like to remind everyone that comments made by management today will contain forward looking statements.
These forward looking statements plans expectations estimates and projections that involve significant risks and uncertainties.
These risks are discussed in the company's earnings release, and our SEC filings.
Actual results may differ materially from the results discussed.
These forward looking statements.
In addition, during today's call management will refer to certain non-GAAP financial measures.
Conciliations to the most comparable GAAP financial measures are included in the schedules contained in our earnings release and presentation.
We do not provide reconciliation of forward looking non-GAAP financial measures due to our inability to project special charges within a certain extent.
Today's call is also being broadcast live on our Investor Relations site.
I'll be available for replay shortly after the completion of this call now let me hand, it over to Lee.
Thank you, Bob and Hello, everyone.
The full quarter together launched pilots I'm extremely excited about the potential across our business the 2022 and beyond.
We closed gainsay the launches the beijer acquisition to date.
What type of walnuts last year, and we've made significant progress on integration to this point.
Give me just a few highlights.
With a pad and got approved a consolidated Greek budget based on a clear set of strategic goals for 2022.
In the next week, we will unveil our purpose and values tried global employee base, which will be at the heart of how we grow our business over the coming years.
We have started to see the first fruits about omni channel vision with the launch of Bally Casino in New Jersey.
Our data project, which will be a key enabler to allow us to further optimize our business performance.
Well underway.
We are on track without rollout probably back to the Xerox.
We continue to build top of funnel awareness grow our customer dataset and see increasing engagement on a free to play products.
We have rationalized the games, there's public co spend to the tune of approximately $5 million.
We launched the Bally's foundation in the U K to improve global employee buying and global awareness, we will launch the same in the U S. In the next few months.
And as we continue to drill down into the business, we own finding best practices, among the teams, which will drive efficiencies for us in the longer term.
Bringing together a wide variety of assets with geographically dispersed teams and a number of business lines is not without complexity. So I'd like to give my heartfelt. Thanks to all of the bally's team for the passion with which they have approached all of the integration work streams.
Yeah.
As we've stated before we are a unique combination with equal revenues coming from U S retail casinos and our global digital business.
We believe in customer Centricity, driven by Great service, great data and great analytics.
We did not need to be first to market with an inferior product customers will always have choices and your first impression is more important than timing of launch.
We will launch when the product is right and we're willing to make short term gain to build long term trust and value with our customers.
With the continued irrational spending on sports betting we have concentrated on North American interactive focus on building sports betting product that is U S centric and easy to use for the mass market.
We will begin to market our T zero product in Arizona, and New York in the first half of 2021.
We've also accelerated our efforts to go live in Ontario, with regulated online gaming and we expect to launch that in the summer.
And we'll add additional state launches through the second half of the year.
Finally, I can see now launched in New Jersey in December and I'm very pleased with the early results.
Now one of the coal plant, so the rationale and bringing that together bally's and games as well.
It was to enable a lower cost of acquisition into digital products.
We've seen very positive early momentum for our cross sell campaign and the a.
C database into our casino.
Sign ups above our expectations across the board.
Actually delivering double digit database conversion in the higher value segment.
The cross sell campaign has enabled a blended C P I to come in under $200 and it's brought in customers with predicted ltvs circa two X compared to what we've seen on our Virginia Casino brand in the same state.
We plan to increase that cross sell campaigns that in Q1 'twenty to 'twenty two.
Naturally we will also have a bowl.
Our position as we go forward and that was illustrated with the addition of lives casino to the product on Monday of this week.
We continue to focus on the differentiated Omnichannel strategy, when we drive awareness of the police Brian using free to pay bought our products to optimize customer acquisition, providing cost structural advantages for our interactive business. A great example of this is the 100 million March madness.
The challenge that we will launch on the seventh of March leveraging our properties, our extensive partnership with Sinclair and a free to play expertise to deliver an extremely cost effective marketing campaign.
As we introduced in the third quarter, we're going to report our business with three primary segments casinos and resorts International Interactive and North America Interactive.
So turning to casinos and resorts, we have a large portfolio of regional gaming assets that generate significant and sustainable cash flow.
2021 was a record revenue EBITDA and free cash flow year.
For 2021 pro forma for acquisitions completed in the year, Excluding Atlantic City revenues were 983 million, an EBITDA was 395 million showing a 40% EBITDA margin.
Fourth quarter EBITDA of $83 million on revenues of 278 million, excluding I say EBITDA of 88 million on revenues of 247, showing a 36% EBITDA margin.
In the seasonally lower fourth quarter, we were negatively impacted by Covid and the previously mentioned smoking ban in Shreveport.
In addition in response to market condition, we bought back some I mean it tasted in November December that caused a little offside with COVID-19 and the impact of poor weather.
We've pulled back that isn't maintenance says in January in the past few weeks have seen the return of strong margins.
2021 pool pro forma as if all acquisitions place at the beginning of the year, we would've had revenue of approximately 1.15 billion.
Going into 'twenty, two we expect revenues to be flat or slightly up from that level.
<unk> in the range of $395 million to $395 million we.
We expect the Atlantic City will contribute 150 million of revenues.
No EBITDA.
Excluding I say, we expect EBITDA margin to be in the 38, 39% range. This includes the January that had 5 million of headwinds due to COVID-19 and particularly poor weather.
Volumes of bounce back in line with expectations in February inflationary pressures, particularly on the wage side the main headwinds into 'twenty two but.
But we expect the market to be rational.
Continue to expect that we will maintain most of the margin guidance for 2019.
Our FTE count at the casino at the end of Q4, 'twenty one was down.
Down 26% over Q4, 19, and we expect it to hold at that level through 'twenty two.
We have 190 million of capital expenditures in the practices in 'twenty two with the key highlights being Atlantic City, where well at 750, New hotel rooms, and subtle near mean it says it will be in service by Memorial day.
Lincoln why we'll build out 50000 square feet and have a significantly enhanced Asian off right.
In Kansas City, the investment will extend into 2023.
Significant upside to an already successful story with the addition of 40000 square feet.
The land based facility housing non gaming amenity.
In addition, we will finalize the full pallet rebranding of our properties for the second quarter.
Moving to international interactive, which primarily operations in the U K and Asia.
2020 was the record revenue EBITDA and free cash flow.
In terms of revenue for the full year on a constant currency basis U K. It was plus 10% year on year and Asia was plus 18%.
Comps in Q4 on a constant currency basis U K was down 5% and Asia up 8%.
Handle in the UK it was only up 1%.
More than 4% move down in the house that led to a result slightly below expectations.
But January on the house side, you came back to normal levels Q4 average monthly active users were down 3% year on year, while deposits ticked up 4%.
We continue to believe that the average bet size customer profile responsible gaming standard and our lack of dependence on VIP business.
As in a favorable position in the U K Progressive the gambling Act review.
We have always been and will continue to be the lead our best practices in the market illustrated by a recent gammon cap accreditation for the safer gambling standards.
Three which is the highest level and the company can achieve.
In Asia fourth quarter revenues from plus 8%, while total handle was plus 14 on deposits were up by 15%.
I know you called out brand continues to take share and during Q4, we made 24 seven customer cast small cap.
So he is now our largest product segment and even when you combined life and RMG Casino and we believe this demonstrates wider adoption of online gaming in the market. We were first mover out there and can say that the data is pointing us tremendous opportunities and citizen, but sure long.
In 2021, 34% of NGL was from customers acquired over two years ago and this is up from 22% in 2019 in 'twenty 'twenty.
Having a strong and growing long term customer base allows us to be more competitive and continue to invest while maintaining strong growth and cash flow.
In the U K for 2022 we expect low to mid single digit right.
The H one we have some tough comps, but we expect the year on year decline, we saw in Q4 to be the low point.
We expect Asia to deliver double digit growth.
Spain rest of Europe , and rest of the world will have revenues of $50 million to $60 million compared to $68 million 2021 due to the closure of non core market.
We expect total revenue of approximately $1.15 billion, assuming a GBP USD 135.
Segment EBITDA margin should stay at that long term guidance of 28% to 29%.
We will spend approximately 30 million on capital expenditures consistent with historic spend on platform development.
Yeah.
Yeah.
Lastly, North America interactive, which comprises a growing b C operations and supported B to B operations.
The business continues to grow quarter on quarter 90 million revenue in the quarter compared to 11 million in Q3 EBIT.
EBITA losses of $8 million in the quarter, which is within the range that we expected and compares to approximately $5 million of losses in the third quarter.
Sallie I could see that launched in December and we have good momentum through January and into February brand awareness is strong and improving through the visibility given the cross Valley sports.
So micron interactive we project 2022 type of 125 million of revenue and a negative 60 million of EBITDA.
And 30 million of capital expenditures capital expenditures are primarily software development costs required for a state by state launches.
Our corporate segment is projected to be $50 million and that rent, which does not include any rent associated with Tropicana Las Vegas is $46 million, we will announce additional details on chocolate calling her in the coming months, but we continue to be excited about the opportunity in Vegas and we are in advance discussions.
With potential development partners.
We expect to be in a position to communicate I've chosen partners unplanned by the half year ahead of completion in early Q3.
Putting all those things together it gives us a headline net revenue of two four to $2 $5 billion and adjusted EBITDA of 560 to 508.
And that includes 60 million of EBITDA losses in North America Interactive.
Capital expenditures include $120 million of growth capital of approximately $60 million of maintenance plus $60 million of interactive split between North America, and international and $30 million, one time capex related to integration.
Prior to turning to Steve I want to update you on our ESG efforts.
<unk> was a leader in ESG in the UK and families will be a leader in the U S pallets.
Alex have now established an official ESG committee of the board.
Our longstanding guidance. This foundation in the U K has been renamed Bally's Foundation, and we'll spend more than $2 5 million pounds. This year on assets in the U K.
We're also setting up a foundation in the U S to invest in the communities that we serve.
From an ESG reporting perspective S. A S. B reporting will go live in Q1, 'twenty, two and the U N social development goals reporting framework will be set in the second quarter.
In the coming months, we will have a dedicated ESG section on our website, but most importantly, we're increasing our responsible gaming awareness programs across our entire company.
Giving back to the community maintaining a healthy relationship with our customers. There's always been a priority of our culture now let me hand, it over to Steve.
Lee Thank you mostly housekeeping for me.
For the quarter, we reported net revenues of $548 million. This reflects a full quarter of interest revenues of course under our new segment reporting structure. Additionally, we filed an 8-K. This morning that has a recast for the past seven quarters.
That should help satisfy your modeling requirements.
For the quarter adjusted EBITDA was $119 1 million. This includes a $5 $7 million loss at Bally's AC that we will continue to call out as we work through the seasonal loss profile at that property.
Also in the quarter, we repurchased $87 million worth of common shares at an average price of just under $40 total share count, which assumes full conversion of Sinclair warrants and options and other contingent shares $66 5 million and the schedule for this is included in our 10-K materials.
Total debt outstanding at the end of the quarter was $3 $5 3 billion in cash on balance sheet was just over $200 million.
A few modeling assumptions depreciation and amortization for 'twenty, two will be approximately $400 million, which includes $265 million of purchase price amortization from the games as transaction.
Cash taxes will be approximately $30 million primarily international.
State taxes, we estimate our GAAP effective tax rate to be 20% for 2022.
Stock compensation will be approximately $30 million.
As Lee discussed.
Excuse me, we will have $180 million of property related capex with values AC front end loaded the $60 million of interactive Capex is spread evenly throughout the year the $30 million of corporate Capex will be front end loaded as well and.
And so with that operator, we are prepared to take questions.
Leann.
She would like to ask a question. Please press star one on your Touchtone phone you may withdraw your question at any time by pricing there kind of a pea once again that is star one and we will take our first question from Lance Vitanza with Cowen. Please go ahead. Your line is open.
Thanks, guys. Thanks for taking the questions I have three if I can the first is the.
The status of new UK gaming regulations, maybe we'll just start there if you can comment on that please.
Well, Thank you man.
Well Unfortunately due to the pressure is really on government time the schedule for that.
White paper look sort of shifted out a little again I'm not pleased about that but we are where we are.
As I mentioned in the in the remarks, you know we've got a very mass market base in a relatively low spend per customer compared to others in the market. So we think we're well positioned.
Potential changes that might come through the review, but it's worth remembering that when whenever we face any prior regulatory change in the U K you know the past 20 years.
Even even when it had a short term impact on us over the mid to wants to he is we've always been net gain as I continue to believe that you know the further change to the regulatory landscape in the U K through the review and of course, we don't know exactly what it will be.
It is most likely to consolidate share in the larger players and and see smaller players exit the market. Indeed, we actually saw someone exit the market earlier this week and have that license in the U K. So we feel disappointed that the timeline keeps you.
Sting out, but we're expecting to see a white paper in may.
And typically that would be kind of 90 days consultation around that white paper and then it would depend whether it needs an act.
The parliament to enact and the thing and not what Paypal as to when it could have an impact on the market. It doesn't need to not take could be in by Q4 or Q1 of 'twenty three if it needs an act is probably mid to.
Second half of 2023.
Okay. Thank you for that I guess the next question would have to do with New York and how you are thinking about your marketing in and approaching that market.
So we wouldn't think about sitting in new York much differently other than obviously with an eye on the margin because of the tax rate then we went elsewhere.
You mentioned database cross sell even though we haven't got a property in New York today.
We do actually have a thorough database all New York players and that's because actually AC database is as large with players based in.
New Yorker dresses than it is with players with New Jersey addresses.
So we also have a large chunk of Pennsylvania players in that database as well so that's going to be our first point of call right, we'll be going there and we'll be looking to leverage our digital expertise in terms of more saying that we'll be approaching it cautiously.
I think you'll see the same kind of tactics from violates that you've seen with other players with very very significant spend.
Spend above the line.
Okay, and lastly for me before I jump back in the queue is could you just talk about how the integration of the technology is going.
Obviously the games as technology is key but also some of the some of the deals that were put together before you arrived.
That works et cetera, you know, how how is all of that being integrated in and how would you describe where we are in the process of getting everything to really gel. Thanks.
Okay. Thank you.
It's been there's been some herculean efforts I would describe the technology teams at the last 12 months.
I think that they've done an amazing job and starting to do all of that plumbing, it's not an easy task right. When you when you eat bringing technologies together.
We've already got working now the Pam from game says all of the data flowing in the data architecture rollout and the sports engine from Pet works now actually not rebrand it to evolve as part of that.
Single platform all of that plumbing is happening and we now can take back and two N. So, whereas four weeks ago.
We didn't have absolutely surety on that that is all now up and working so I think the teams have done an amazing job in terms of pulling that together.
You know I I T is another area, where we want to progress and we will be very focused on making sure that all of the interactive assets wasn't just felt what you mentioned, but all of the other interactive businesses that were acquired pre game says all get onto the same common working platforms as well.
It is incredibly important cross enjoined in adults and just communicating more effectively but.
I guess the short answer is very pleased with how the technology.
It's coming together its been a ton of work from everybody and that's that's emboldened us to say that you know will we talked about launching an H. One we know we're definitely launching an H one I mean, I would definitely launching in Arizona, and New York and H one.
Thanks, very much for your help.
Thank you.
And we'll take our next question from Ricardo Chinchilla with Deutsche Bank. Please go ahead. Your line is open.
Hey, guys. Thanks for taking the questions.
First of all begin I was wondering if you guys could comment on what maximum leverage level do you guys feel that you know these set of assets can withstand.
On a consolidated on a consolidated basis I don't have restricted group basis. So any comment on that no maximum leverage that you will feel comfortable you know having at these you know with this portfolio and do that all everybody to sleep comfortably at an AD you know a night would be very helpful.
Yeah, so what.
And I think it was a record I was okay I recall there. Thanks for the question.
And what we're comfortable with where we are of course, the main way that we'd like to bring.
Bring leverage down as to draw about profits and drive our profit lines, but we're we're definitely comfortable with where we all don't know Steve if you've got any further comment on that.
Ricardo Hi, yes.
Yeah, just a little bit.
As we mentioned when we marketed.
Well frankly, the equity and the bonds last year. This is a this is a we think.
Healthy place for this for this growing company to be where we are now kind of low low fives. If you will cash flow leverage we do intend to delever over time, the capex profile that lead mentioned.
His dialogue is less than half of our of our consolidated EBITDA and obviously, we have the ability to manage that.
Along the way as appropriate visa fee leverage so.
It's never.
Static situation, it's it's quite fluid overtime, but we are mindful of leverage and we intend to work it down over time, but by the way.
It's a two part equation there is the debt and then the cash flow side as North American interactive ramps into 2023.
That leverage will be will be impacted favorably.
As well as a recovery, we think from omicron setbacks in 2021.
That's all I have.
Yeah.
Perfect.
I could squeeze one in on the interactive front it seems like your expectations, where the burn is going down from 80 million to 6 million is related to timing.
You know lunches getting into 'twenty, two 'twenty three or is it more related to you guys being more you know more cost conscious in some of your assumptions, particularly now that given that some of your peers might be.
Her into lower media spend.
And I'll tell you a little bit of both.
Yes, it's Paul partly timing and partly us just being cautious in terms of where we want to go.
On the build out.
Partly indicated a little bit by you know the the positive cross sell news that we've had from Bally ally Casino in New Jersey, that's that's kind of the.
The good news, it's early days there, but you know what we're comfortable with with the guide 60 mile.
That's all I had thank you so much thanks.
Thanks for color.
We'll take our next question from Dan <unk> with Wells Fargo. Please go ahead.
Hey, good morning, guys and thanks for taking my questions.
So I guess first off on some of your real estate that you own. It. Your casinos can you just walk us through are there any property specific nuances that would limit flexibility for sale leasebacks and I asked that thinking about Rhode Island, where I know you just renegotiated something this past summer that gave you more flexibility. So are there any other properties that are encumbered and maybe I guess can you talk.
About what.
Is there anything special about Rhode Island that would limit flexibility.
And George can you please I'm not sure right.
In.
Tahoe is.
Our Tahoe properties currently under a lease arrangement.
Other than that.
We have the ability to monetize any of these any of the other assets as.
As far as as road, and obviously that will be depending on our kind of strategic our strategic plan going forward.
So in Rhode Island.
No there's really nothing.
Especially as part of the previous legislation that was passed for IGT.
That prohibits us from from monetizing any of those properties.
Sell leaseback.
Got it and then just switching to North America Interactive you Chairman recently spoke about some challenges.
That are kind of well known out out in the market I mean, how do you view the opportunity to gain share there's something youre going to chip away at over time or are you going to make a big splash with the large media campaign.
And does this strategy kind of coincide with the reduction from the 80 million to $60 million.
No.
There was never a big.
Rash media campaign.
Plough.
Tens and tens of millions into that is something where we will chip away at the time and we will.
Leverage the assets that we have we think we have some phenomenal asset.
And strategically made the right choices in terms of trying to create a differentiated customer funnel.
You know we have a long term deal with Sinclair.
One it gives us the legitimacy and schools too I think.
It makes the Bally, Brian very evident and we think we can leverage that a lot further and we've got you know significant free to play capability, which we have which we believe helps massage that funnel so well.
I don't know.
If I like the phrase chip away at the time.
<unk> steadily incrementally and sustainably over time is probably where I would place us rather than a.
The big all our media campaigns.
Alright, Thats fair and just if I could squeeze in one more quickly.
Special Committee is there any expectation for when investors can expect an update.
On how things are kind of progressing there.
Dan I cant say anymore.
Beyond what's already been released strike we've formed the special Committee the board that'll be considering the proposals I think it was announced the other day that they've appointed advisers now so there's always a need to do that work and consult back with the special Committee and but there's no there's no set timing though.
No well, who can give you that.
Understood. Thanks, so much.
Thank you.
Well take our next question from Jeff syntax Vantuyl with Stifel. Please go ahead. Your line is open.
Great. Thanks for taking my question, it's great to hear from you all again.
Apologies if I missed this but I wanted to talk to the North America losses on the online shrunk a bit more as it stands with your current rollout plans do you have a sense yet when you might see the peak from a quarterly EBITDA loss perspective, and then how are you thinking about the timing to inflect EBIT positive all things considered.
So.
In terms of the guidance, we've said generic probably $60 million in 'twenty, two we would expect that to probably repeat in 'twenty three.
As we roll out into further states and in terms of getting to profitability.
Profitability I mean, obviously, we're early in today's decided that that Hudson that that has some challenges and could change along the way but.
But we would expect to get to profitability at some point in 2024.
Yeah.
Okay, Great. That's very helpful. Thank you and then for my follow up I wanted to touch on the prospects you know kind of a follow on with what's on Dan's questions on on more real estate monetization here, we've seen some favorable cap rate comps out there more recently and there is comments from your chairman, suggesting there is potentially some value not being realized.
You in your in your portfolio on the real estate front that the public markets. You know all things considered has this changed your view.
On potentially monetizing some of your wholly owned assets or do you still view this mostly as a financing mechanism to fund more inorganic growth on the brick and mortar front.
Yes, I mean, that's and you've seen us do some some sale leaseback over time, we've tended to do it when we've got a strategic reason to do it and I think that remains to be our outlook.
So you know that that is a big asset that we hold within the portfolio right with some of the promises that running combat.
So we will look at it.
You know predominantly looking at when we've got something strategic that we think we can leverage off the back of it.
Perfect. That's all from me very helpful. Thanks.
Thanks, Jeff.
And just as a reminder to ask a question today that is star and one and we will take our next question from David Katz with Jefferies. Please go ahead.
Okay.
Hi, This is cassandra asking for the team.
Taking my question I.
I just want to get that.
On the pitch for downtown Chicago license, one Kelly exact legislation.
The city.
So the date in terms of decision from the city is pushed out a little bit. So we're now expecting a decision in April .
Previously that was effective in March we continue our dialogue, we continue to be excited about the opportunity to say as long as it is on the right terms.
And but we're expecting a final decision come April .
Got it.
For Chaco stages, I think that will also be rebranded them. Once the acquisition close can you talk about maybe potential capital requirement, there and update on the strategic plan for that property.
So we're not going to see that stay Cassandra because as I mentioned in my remarks, you know with we're in a number of discussions with development partners very excited about the potential opportunities, but we're not actually in a position today to say what those plans are we said we will confirm.
Those plans before the end of the half year.
Ahead of completion on that property in early Q3.
Got it thank you very much.
Thank you.
Yeah.
And we'll take our next question from Barry Jonas with tourists Securities. Please go ahead.
Hey, guys good morning.
I wanted to start with our share repurchases there was a nice level in the quarter. How are you thinking about that going forward.
Thanks Barry.
So we'd.
We obviously purchase.
Fair amount.
And and the run up to the end of the year and we continue to keep that in mind.
And you know we continue to look at that on a on a basis alongside other opportunities for our cash investments.
But right now we're not active in the market.
And well, we'll see how we go from here.
Okay.
Great and then shifting to gain with this.
You talked about a customer acquisition reset in December which it believes the Google auction, just how should we think about that going forward.
We have had somewhat of a bounce back so you know I.
Our trend line in the U K has been somewhat consistent with our peers as we pass through some very tough comps.
Were further impacted by that house I, just mentioned, which was actually the second lowest quarter ever on record for us.
And then we sold the the cost of acquisition inflation in the gate globe shouldn't in the second half of 'twenty Walden.
And we decided we wanted to be disciplined and did not spend in.
Chase and you saw a better impact on revenue in Q4.
Very happy with current trends in the U K.
And where what basket, where we would expect to pay in terms of levels of acquisition. So I think that you know you can't say, it's not going to happen again, but not happening currently is in set where we're back on track in terms of where we would expect to pay in terms of levels of S. T d's and the spend to achieve that.
Great and then if I could sneak one in I recently had the opportunity to see twin River Lincoln and was just hoping to get more color on the construction there maybe your thoughts on ROI and really the player base, you're targeting or are you looking to kind of reclaim some lost business or do you expect.
Youre going to significantly grow the market.
Yeah. Thanks, Bonnie so clearly a big Asian focused that but maybe you know, Georgia is super close to that maybe you want to add some color sure. So we broke ground on this project in September .
Which will again expand the gaming floor by 40000 square feet.
It will also allow us to create Lee referred to what we're building is a destination agent targeted gaming amenities, which will include an Asian food Hall, a feature bar seems your order feature.
We had a topping off ceremony at the beginning of February Adil.
Additionally, we're going to be adding 14000 square feet.
Korean spa and that will be constructed within our hotel, where we already have 4000 square feet that is taken.
We expect everything to be online for Thanksgiving in 2022.
It's a bit of a defensive strategy, but clearly.
It's to reintroduce customers that we feel have split trips with primarily encore that wed like to recapture back into <unk>.
Providing more visitations to us.
Perfect. Thanks, so much guys.
Thanks Barry.
And there are no further questions at this time I will turn the call back over to Lee for any closing remarks.
Okay.
I'd just like to thank you for your time this morning, and thank you for your continued attention on the business.
You know I think we've got a tremendous opportunity with the assets that we pulled together over the last 24 months at palace and we're only really just getting going in terms of realizing what they can do once combined.
So thank you for your time and I wish you a great rest of day.
Goodbye.
And this does conclude today's program. Thank you for your participation you may disconnect at any time.
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