After making an announcement that they will be making provision for the addition of about 1,371 rooms to its Wynn Palace Cotai venue in about eight months ago.
The reputable casino operator Wynn Resorts Limited has made it known that a similar expansion plan is also in place for its nearby Wynn Macau facility after unveiling the expansion plan. Following Bloomberg news service, the firm which has its headquarter situated at Las Vegas declared that approximately $2 billion has been set aside for the expansion plan which will bring a 650-room hotel tower to the southern part of where Macau Peninsula currently exist. Also, there are intentions to follow this expansion by erecting a similar structure at the opposite side.
Reputable American architect, Robert Stern designed the original steel and glass structure which was nicknamed ‘Crystal Pavilion’.
Anyways, the structure will require the sum of $125 million for renovations. According to the estimation, this will give Wynn Resort limited a mouth-watering 20% return-on-investment rate by the time it gets commissioned in the year 2024. After the completion of the entire project, the resort will control an annexation pair of hotels, which will have at least 1,300 rooms coupled with theater, gardens, an art museum, interactive sculptures, and a performance space.
The massive expansion will even show and emphasize more on the commitment of the resort as regards Macau endeavors in getting its casino license extended beyond 2022.
“This type of investment in nongaming amenities will not only help Wynn’s business in Macao but help (strengthen Macao’s) position in the global leisure market and help Macao evolve into more than just a gaming destination, All of that should be received favorably by the government in Macao” There were the exact words of John Decree, The Union Gaming analyst who also believes that the significant demand for Wynn Palace made the Resort believe that they could make use of more hotel rooms. He further said, “Regardless of trade tensions, it sounds like the project will move forward, but don’t expect any real capital deployment until 2021”.
A Make it or break it plan for Wynn Resort
It is no news that Wynn Resorts shares recently fell $3.39, 2.53 percent, to $130.34.
Well, Joseph Greff, an analyst at J.P Morgan believes that Wynn’s initial target is to build Macao gaming revenue to at least 3.5% through the year 2021.
He said, “Today’s pullback reflects some level of disappointment in the assumption of 3.5 percent annual growth in Macao, and slightly higher (capital expenditure) for Wynn Palace’s Crystal Pavilion expansion.”
Another report carried out by Steven Wieczynski referred to the 3.5% a “glaring outlier” of the forecast. The report goes thus “Management has very limited visibility into Macao market (especially around the VIP market) and it does them no good to throw some obscene GGR (gross gaming revenue) growth forecast out there eventually proves aggressive, having said that, we would be willing wager a large sum of money on the over 3.5% growth rate for Macao in the next couple of years.