Wynn to splash US$2b in Macau

Business | Bloomberg 12 Jul 2019

Wynn Resorts, the parent of Wynn Macau (1128) unveiled plans for a US$2 billion (HK$15.6 billion) expansion of its properties in Macau, including a theater and museum.

The company expects to get as much as a 20 percent return on the investment.

The Crystal Pavilion complex, which will be adjacent to the Wynn Palace on the Cotai peninsula, will include two hotel towers, interactive sculptures, gardens and a performance space in a glass and steel structure designed by architect Robert A.M. Stern.

Construction will begin in 2021, with an opening set for 2024.

Chief executive Matt Maddox is pressing ahead with his expansion plans, even with markets skittish over trade tensions with China. Casino operators there are under pressure to invest in non-gambling attractions to diversify China's tourism industry.

Wynn Resorts is also competing for a license in Japan, which recently legalized casino gambling. The company unveiled an illustration of an urban waterfront resort there on Wednesday as part of a presentation to investors at its new Encore Boston Harbor resort.

Licenses for Macau casinos are expected to come up for renewal over the next few years, with Wynn's due in 2022, giving the company an incentive to underscore its commitment. Wynn also plans US$125 million in renovations for its original resort there.

Wynn projected revenue growth of 22 percent through 2021, and 28 percent higher earnings before interest, taxes, depreciation and amortization. The Boston resort could generate as much is US$325 million in profit on revenue of US$1.1 billion within three years, the company said.

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