Regal plans to upgrade its cinemas with $250 million in capital

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Regal Cinemas, the second-largest movie theater chain in the U.S., has raised $250 million to modernize its facilities, the operator said Tuesday.

The increase is intended to boost the number of existing locations (425 theaters nationwide) with upgrades like luxury recliners and other amenities. Regal is owned by struggling movie theater giant Cineworld, which filed for Chapter 11 bankruptcy in September 2022 and emerged from a financial restructuring last year.

“Regal is executing on its business plan and first-quarter results exceeded our expectations, delivering one of the strongest balance sheets in the industry,” said Regal CFO Thomas Song. “As we invest in delivering the best moviegoing experience, our customers will enjoy enhanced theaters combined with a strong slate of films through the end of the year.”

Song, who joined Regal in March as part of a series of executive appointments at Cineworld following its bankruptcy, added: “As we identify cinemas where these improvements can be made, we encourage our owners to also contact us expressing interest in their locations.”

Exhibitors like AMC Theatres, Cinemark and Marcus Theatres have focused on upgrades for years to lure homegoers with more upscale experiences, while boutique chains like Alamo Drafthouse (which was acquired by Sony Pictures in June) have built their brands on offering customers more amenities (like in-theater dining) than standard movie theater locations.

Now, Regal is also apparently trying to catch up after it liquidated multiple locations and screens last year amid its parent company’s bankruptcy proceedings under bankruptcy laws.

While watching movies has been revived thanks to From inside to outside 2, How to steal the moon 4 AND Bad Boys: Ride or Die In recent weeks — domestic box office receipts from July 5-7 reached $156 million — the year continues to be a challenging one for theaters, which have seen fewer notable successes due to production delays caused by the strike and the pandemic.

Year-to-date domestic box office receipts are $3.9 billion, down about 17% from 2023, according to Comscore. There could be more declining days in the short term. “Overall, we forecast box office receipts to decline a relatively modest 6% this quarter” year over year, theater chain analyst Eric Handler of Roth MKM wrote in a July 8 report. “Our forecast calls for declines in July and August before turning positive in September.”