The Las Vegas Strip is officially in economic recovery, according to Steve Wynn, chief executive officer for Wynn Resorts, Ltd., who based his declaration on first quarter earnings of .51 billion, which are compared for profitability against a Wall Street benchmark of nontraditional figures. Wynn’s total revenue of 0.9 million was down 1.5 percent from one year ago. Daily room rates increased 6.2 percent and revenue per room was up 12.6 percent.
Wynn said that figure makes the company the most profitable hotel in Las Vegas.
“I see Las Vegas getting a footing that it hasn’t in the past,” he said. Until last week, he was reluctant to discuss the Strip’s touted recovery by neighboring casino operators.
The Strip may be in recovery, but Wynn’s larger interests lie in the current gaming capital of the world, Macau. Last year, Macau turned out $45.2 billion in gaming revenue. Wynn Resorts had a first quarter net income of $226.9 million at $2.22 per share. That’s up 9.8 percent in one year. Wynn Macau and Encore at Wynn Macau earned $1.13 billion, up 14.2 percent from 2013.
Now, the company is building the Wynn Palace in Cotai, Macau, for $4 billion. The facility with its 1,700 hotel rooms, spa, retail outlets, restaurants, meeting space and performance lake, is projected to open in 2016. Wynn said the outside of the property will feature a 25-foot Faberge egg and restaurants will have full theater stages.
But the company wants to retain its revenue at the original facility and Wynn said there will be changes completed prior to the opening of the new resort.