Creating “compressed energy”
A total overhaul of the mass gaming floor at the new Wynn Palace resort on Macau’s Cotai Strip could take a year and a half to complete, but the resort could benefit from the renovation as early as summer 2017.
The $4.2 billion Palace opened in August, with a floor so vast it looked empty, despite the crowds that flocked to the luxury resort.
“Wynn Palace’s mass floor casino space will be reduced without reducing the number of tables, to create compressed energy,” said Morningstar analyst Chelsey Tam. “The group is carving out a section on the casino floor for construction of a casual dining area, which we expect will match mass customers’ demand better, as hard-core gamblers are more likely to be interested in eating quickly and returning to the gaming tables. Currently there are approximately 200 seats for high-volume dining; this does not appear to be enough.”
Tam said Wynn Palace’s ramp-up “will increase gradually in the near term, thanks to increased marketing efforts and enhanced connectivity via the bus programs.”
The Macau Business Daily reports that ongoing construction on the Cotai Strip has made it hard for some people to easily get to the Wynn Palace. The resort is working to overcome those obstacles with cut-rate rooms, loyalty programs and baccarat and poker tournaments.
“We have seen promotional offers as low as HK$1,019 (US$127)” for rooms, Tam notes. “We have also seen a lucky draw to attract players and free chips for registration.”
