Key Takeaways
Wynn Macau Ltd. (1128.HK), a subsidiary of Wynn Resorts, announced first-quarter operating revenues of $989 million, a 14.2 percent increase year-over-year, as the gaming hub continues its post-pandemic rebound.
"Wynn Palace runs at essentially full occupancy every night. You’re not making a speculative bet by adding rooms; you’re clearly capturing demand that already exists," Craig Billings, CEO of parent company Wynn Resorts, said on an earnings call while discussing plans for a new hotel tower.
According to the first-quarter results, adjusted property EBITDAR grew 10.9 percent to $279 million, while operating income climbed 14.2 percent to $145 million. The company's performance was also bolstered by a strong Labour Day holiday period, where management said casino drop was up year-on-year.
The results prompted Wynn Resorts to announce a new all-suite hotel tower in Macau, branded 'The Enclave at Wynn Palace.' The project, estimated to cost between $900 million and $950 million, will add 432 suites and increase the property's room count by 25 percent. Construction is expected to begin in the second half of 2026.
The planned expansion in Macau highlights the company's confidence in the region's growth, even as it faces minor delays on another major project, the Wynn Al Marjan Island in the UAE. The new Macau tower, which will not have a gaming component, is designed to capture unmet demand for high-end accommodation. Investors will be watching for final government approvals for the project in the coming months.
This article is for informational purposes only and does not constitute investment advice.
