Betting big on Asia Pacific: designing the next generation of integrated resorts

Integrated resorts – also known as IRs – are large-scale hospitality developments anchored by gaming, but complemented by a range of other leisure and entertainment facilities. In recent years, the IR market has gained rapid momentum, bringing a new set of players to the table – especially in Asia Pacific.

As competition increases, so too does the need to evolve, innovate and differentiate. Creating the next unique destination experience requires not only a mixture of market-driven leisure and entertainment activities and a new gaming experience, but key insights into consumer trends and preferences of all segments.

As competition increases, so too does the need to evolve, innovate and differentiate.

In this article, Guy Cooke, Director of Strategy, shares insights on five key trends impacting the sector today – backed by WATG’s 76-year history of supporting clients through the development and design of some of the world’s most famous IRs – from the legendary Atlantis Paradise Island in the Bahamas and Venetian Las Vegas, to a new wave of properties in Asia Pacific including Paradise City in South Korea, Hoiana in Vietnam, and the newly opened Grand Lisboa Palace in Macau.

For more research and insights from WATG Strategy, click here.

1. Lifestyle gamers

In Asia Pacific, IRs are increasingly looking for ways to capture a bigger slice of the premium mass segment – that is, wealthy casino guests that travel independently to resorts, and to whom non-gaming factors often drive resort selection. Although operators carry their own definitions, in locations such as Macau, premium mass reportedly equates for 30–50% of mass gross gaming revenue

Luxury lifestyle elements and a considered mix of amenities that appeal to both casino patrons and non-gamers alike are now mainstays of the successful IR.

As a result, the incorporation of luxury lifestyle elements and a considered mix of amenities that appeal to both casino patrons and non-gamers alike are now mainstays of the successful IR. One-of-a-kind elements such as experiential retail, thematic dining and cutting-edge wellness concepts are increasingly used to entice guests, with signature entertainment options that celebrate Asian culture proving extra popular.

2. Social VIP and optional exclusivity

Shifting aspirations has seen a segment of ‘high-rollers’ move away from demanding outright privacy and towards a more social approach to gaming, where optional exclusivity becomes preferable. At the same time, mass-market gamers – in line with broader sector trends – are looking for more unique, personal experiences.

As designers, we see huge opportunity in bridging the gap between public and private – creating a range of curated lifestyle gaming spaces.

As designers, we see huge opportunity in bridging the gap between public and private – creating a range of curated lifestyle gaming spaces, supporting further segmentation within IRs. To quote my colleague Hussain Kamal, the next generation of gamers have high expectations – and it takes highly refined, highly varied and interactive environments to meet them. Spaces that combine gaming with entertainment, dining, spectacle and VIP service will thrive in 2022 and beyond.

3. Hyper-personalization at scale

Across almost every sector, consumer demand for unique and bespoke experiences is a trend that will only become more pronounced with time. In the hotel industry alone, 70% of guests report having positive experiences with personalization*.

Within IRs and other large-scale resort offerings with higher guest volumes, how can you still provide curated, bespoke and hyper-personalized experiences? We believe it’s through a mix of technology, operations, and savvy design.

In the hotel industry alone, 70% of guests report having positive experiences with personalization.

Beyond the in-house experience, technology plays an increasingly important role in personalized service, beginning well before arrival and extending into post-departure to encourage repeat visitation – especially in the Covid-19 era.

It is also essential that careful guest segmentation is considered, designing a range of flexible spaces that provide options for how the guest wishes to navigate their in-property experience. Taken to the extreme, we are designing resorts within resorts – providing boutique lifestyle-centric stays within high key count complexes.

*IBM

4. Nerdy niche to mainstream

Esports has seen significant growth in investment, revenue and viewership in recent years. Arena-like venues for professional video gamers are being heralded as the next generation destination anchor, with significant appeal among millennials and ‘zoomers’.

Flexibility is vital when designing esports venues – even more so in the context of an IR. Spaces should be multi-purpose and able to convert to other uses, maximising revenue opportunities.

One to watch: synergy with the traditional gaming segment in the future, with esports and fantasy betting on the rise.

5. Pop culture in hospitality becomes even more, well, popular

While the incorporation of contextual cultural elements and intellectual property in hospitality isn’t a new trend, recent years have seen it become increasingly nuanced – especially when it comes to IRs. When done sensitively and well, affiliation with unique cultural references provides a recognizable touchpoint and differentiator, as well as appealing to pre-existing engaged markets.

When done sensitively and well, affiliation with unique cultural references provides a recognizable touchpoint and differentiator, as well as appealing to pre-existing engaged markets.

Our Paradise City project (master planning for the site, architecture for the resort, and interiors for its nightclub, Chroma) was Korea’s first IR, catering specifically to domestic and international tourists seeking an authentic immersion into the world of K-pop and global ‘art-tainment’. A specific range of amenities were incorporated to capture the momentum, including an on-site film studio and K-beauty retail, while K-wave celebrity brand ambassadors are engaged for promotion. You can read more about the Hallyu effect in ‘Five trends impacting hospitality in Asia Pacific now’.

Project spotlight

Paradise City, South Korea

All great metropolises are grounded in the past, present and future, and that is exactly what WATG’s design team sought to bring to life at Paradise City through the master planning process. Following the threads of nostalgia, wish and illusion, an urban patchwork of components – including the main resort hotel designed by WATG’s architecture team – radiate from a grand central plaza that connects to transport, large-scale public artworks, fountains, clock towers, and multimedia experiences. Leveraging the synergies between entertainment, gaming and hospitality, an on-site film studio is reserved for K-wave productions, while Chroma – Asia’s largest nightclub, designed by Wimberly Interiors’ Josh Held – serves as a destination in its own right.

Grand Lisboa Palace Resort, Macau

The Grand Lisboa Palace Resort is the latest milestone development in Cotai, Macau’s famous gaming and entertainment district. Inspired by grand European palaces and state buildings, WATG provided the architecture for each of the IR’s three distinctive towers: the five-star Grand Lisboa Palace, the Palazzo Versace, and THE KARL LAGERFIELD, totalling close to 1,900 keys. While each tower’s character and separate arrival provides for market segmentation and a unique set of guest experiences, they are connected by a highly amenitised, centralised hub. Taking inspiration from the likes of the Louvre, it meticulously marries traditional Chinese elements and European architecture to create a unique sense of place.

Hoiana, Vietnam

Described as ‘grand, glamorous, and all-encompassing’, this integrated resort is located just south of Hoi An and Da Nang – connecting visitors to a wide range of amenities from sports to entertainment, dining and more, alongside authentic, rich cultural experiences and natural beauty. WATG worked with the developer to create the concept masterplan for the entire 800+ ha site, before moving onto architecture and landscape services for the first phase and centrepiece of the development – the resort hotel and casino and Hoiana Shores, a Robert Trent Jones II golf course.

With a soft opening in 2021, the project represents a new high watermark for IRs in Vietnam. With support from WATG, future phases will see a variety of further accommodation typologies and amenity concepts added over time. The result is the creation of a truly one-of-a-kind destination with strong appeal to a range of regional tourist profile demand drivers.

About the author

Guy Cooke is a Senior Associate and Director of Strategy, based in WATG’s Singapore office. With extensive global experience in the hospitality space, Guy’s role focuses on market analysis, development strategy and financial feasibility for the hotel, resort, branded residential, mixed-use and attraction sector. He is an avid follower of lifestyle trends and market insights and collaborates with our design teams to ensure creative yet strategic, future-proof solutions for clients and end-users.