- Wynn announces new $2bn investment project in Macau
- Renovation of existing Macau property to be completed by 2019
- New $2bn project to open doors in 2024
Wynn Resorts Ltd. is boosting its clout in Macau with a $2bn project that will result in 1,300 new rooms and a new building next to the existing Wynn Palace.
Wynn Eyes $2bn Expansion in Macau
Following tumultuous past two years, Wynn Resorts Ltd. seems to be back in its stride, announcing a $2 billion expansion of its Macau portfolio. The company plans on adorning its property in the Chinese enclave with a theater, sculpture gardens and more amenities and venues.
Dubbed “The Crystal Palace,” this project will emerge near the existing Wynn Palace property and it will feature two hotel towers and add estimated 1,300 rooms to the hotel’s portfolio. According to analysts, including John DeCree from Union Gaming, the refurbishment and expansion of the property would drive interest in the property, which will in turn require more rooms.
To roll out such a gigantic project, Wynn will tread carefully as stakes are high. First, Wynn will focus on finishing the first hotel room and it will then move on to add 650 rooms as well as the theater. JP Morgan explained that Wynn is planning on some artistically and engineering challenging novelties, such as a Lilly-shaped glass-and-metal structure, along with a sculpture garden and food places.
Union Gaming’s managing director Grant Govertsen has also shared his opinion about the project. Expansions in Macau are not necessarily always profitable, and it’s important for any company that undertakes this to make sure that any novelties fit Chinese taste.
Beginning Construction in Macau
The expansion would definitely take some preparation to be given the best chances of timely conclusion. According to Wynn, construction work is most likely to start in 2021 and the opening will coincide with Japan’s Integrated Resort in 2024.
Wynn is hopeful to attract up to 10 million people as well as register up to 20 percent return on its investment, which gives it a good forecast over the next ten years. Earnings before EBITDA will grow by additional $300 million or $400 million.
Wynn is not stopping there. The existing Wynn Macao property will be refurbished as per a $125 million plan, which will lead to 400 renovated rooms at the Encore tower. These innovations will be complete by the end of 2019, which will give the operator enough time to prepare its more ambitious real estate projects.
Elaborating on whether the growing tensions between the United States and China would have a toll on the expansion plans or business in the region, Mr. DeCree said that this is unlikely. Furthermore, by investing in amenities, Wynn will consolidate its standing in the global leisure business, which is another valuable boost across the board.
Meanwhile, back home, Wynn Resorts Ltd. will be opening its new golf course, Tom Fazio on October 11.