Supplier News
US – Wynn to build new resort on Las Vegas golf course
By Phil - 7 April 2016
Wynn Resorts has announced plans to redevelop land behind its two Strip resorts into a new development dedicated as much to entertainment as to gambling.
Wynn plans to spend US$1.6bn transforming its Tom Fazio-designed Wynn Golf Club into what is tentatively being called Wynn Paradise Park, which is being touted as a lake resort behind Wynn and Encore, which will provide water-skiing, paddle-boarding, ice cream and fireworks.
Wynn Resorts CEO Steve Wynn, who introduced the new concept during an investor presentation, painted a picture of white sand beaches, aquatic features and nightly fireworks shows.
Mr Wynn, who compared the fireworks to Disney’s, added: “I don’t give a damn if they put a nickel in a slot machine. I want them to pay my admission, I want them to stay in my rooms, I want them to drink my booze and eat our food. This is the most fun project in my 45 years. Somebody take the other side; tell me what’s wrong with this idea? We’ve all drunk the Kool-Aid.”
It will include a 38 acre lagoon, surrounded by premium meetings and convention space, a 1,000 room hotel tower, a small casino and extensive dining and nightlife. The elaborate water attraction will include both daytime and night time entertainment elements.
“We have a chance to reinvent Las Vegas and make the whole venue an entertainment attraction; an idyllic beach paradise surrounded by white sand beaches,” Mr. Wynn added. “People come to Las Vegas from all over the world to live large and have a good time and we can dish up an irresistible entertainment attraction.”
It will be constructed on approximately 130 acres of real estate that currently houses the Wynn Golf Club. The proposed lagoon will be lined by a pristine white sand beach and boardwalk and feature an array of daytime activities including water skiing, paddle boarding and parasailing. At night, the space will transform with an elaborate fireworks display that is launched from the 120 ft. center island and surrounding areas.
Wynn Paradise Park will add 260,000 square feet of premium meetings space with unobstructed views of the waterfront, spacious guest rooms with a separate bedroom, living room and balcony, and a variety of restaurants, including an expansion of the current Country Club restaurant.
In addition, the resort is also developing Wynn Plaza, an expansive retail complex featuring 75,518 square feet of luxury retail space. Debuting fall 2017, the uniquely designed complex will augment the existing luxury retail collection currently showcased at Wynn Las Vegas and Encore as well as bring the shopping experience to the high traffic area bordering Las Vegas Blvd.
It will be the first time Mr. Wynn has built in Las Vegas since Encore in 2008.
Telsey Advisory Group analyst David Katz highlighted that the golf course generates about $5m in earnings before interest, taxes, depreciation and amortization, whilst Paradise Park could generate up to $400m.
“We view the re-development as a shrewd move on the part of Wynn to unlockfurther value from the land,” said Mr. Katz.
The announcement sugar-coated Wynn’s preliminary financial results for the first quarter ended March 31, 2016.
In the first quarter of 2016, net revenues are expected to be in the range of $603m to $613m, compared to$705.4m generated in the first quarter of 2015. Adjusted property EBITDA is expected to be in the range of $187m to $195m in the first quarter of 2016, compared to $212.3m for the first quarter of 2015.
In the first quarter of 2016, net revenues are expected to be in the range of $384m to $394m, compared to$386.9m generated in the first quarter of 2015. Adjusted property EBITDA is expected to be between $105m and $113m for the first quarter of 2016, compared to $110.7m for the first quarter of 2015.
