AMC Entertainment, Regal And Other Theater Chains To Invest $2.2B For Upgrades Over Next Three Years: Here’s What Retail’s Thinking

Theater owners across the United States and Canada will invest more than $2.2 billion to modernize and upgrade theaters of all sizes over the next three years.

The National Association of Theatre Owners (NATO) said the eight companies planning to invest in the modernization include AMC Entertainment Inc., Regal Cinemas, Cinemark USA, Inc., Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres, and Santikos Entertainment.

According to the association, the funds will be used on an array of projects to modernize and improve theaters of all sizes.  Updates include adding the latest laser projection technology and immersive sound systems, installing more comfortable seating, enhancing food and beverage offerings, creating family entertainment options such as arcades and bowling, among other things.

The eight largest theater chains in the United States and Canada, represent over 21,000 screens and 67% of the box office.

Since the pandemic and the subsequent rise of OTT players, movie theaters have witnessed a tough time maintaining their revenues.

Meanwhile, Bloomberg reported that a group of bondholders of AMC Entertainment have sued the firm claiming that a restructuring deal in July had eroded their rights and prioritized more junior bondholders.

AMC shares have lost nearly 22% since the beginning of the year. Stocktwits followers of the firm continued to remain ‘bullish’ on the stock on Thursday.

Bullish followers of the stock have expressed optimism on the decision to upgrade theaters.

Regal Cinemas, the second-largest movie theater chain in the U.S., had earlier announced a $250 million capital raise in July. The firm had stated that the capital raise will be used to upgrade existing Regal theaters in concert with respective real estate partners.

The upgrade included investments in luxury recliners and additional improvements to the moviegoing experience through upgrades to Regal's digital channels including the website and app.

Meanwhile, shares of Cinemark Holdings have gained over 101% on a year-to-date basis. The firm had recently announced that it achieved its all-time best September domestic box office weekend driven by Beetlejuice Beetlejuice, which also was the company’s biggest domestic opening weekend box office for a September title.

Also See: Intel Says It Has No Plans To Divest Stake In Mobileye: Retail Gives Thumbs Up

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