Wynn Resorts plans to invest US$2 billion to expand its two casinos in Macau.
The heart of the plan is an attraction called the Crystal Pavilion, which will be adjacent to Wynn Palace in the Cotai resort district and will include two hotel towers with a total of 1,300 rooms and suites, gardens, interactive sculptures, an art museum, a food court and a high-tech theater in a glass and steel structure designed by architect Robert A.M. Stern.
The project was announced with an eye toward solidifying Wynn’s standing with a local government that wants to see more tourism-focused non-gaming investment from the market’s six casino operators in considering whether to renew their gaming concessions, which expire in 2022.
Construction on the Crystal Pavilion is expected to begin that year before the expiration of Wynn’s concession, with an opening set for 2024.
The company said it believes the expansion will attract 7 million to 10 million visitors annually and deliver a 15-20 percent return on adjusted property EBITDA.
“We have a seven-acre parcel next to Wynn Palace Cotai, and we’ve been working very hard on what could come next, and what we have so far is a 1.5 million-square-foot facility that we think will be a must-see in Macau,” said CEO Matt Maddox.
The company also plans $125 million in renovations and upgrades at its original twin casino hotel complex on the Macau peninsula.
Wynn restated its bullish stance on the market, saying it believes mass-market gambling spend will continue to trend upward while the dominant VIP sector will remain stable, an implication that investment in non-gaming attractions is worthwhile.
Mass-market gaming revenue across the territory has grown 43.4 percent over the last two years, while VIP has dipped by 3.5 percent.
Official statistics suggest that VIP gaming revenue fell 15.6 percent in the second quarter while mass-market grew 18.6 percent.
