Development at Cotai
Wynn Resorts (WYNN) is currently constructing Wynn Palace, a fully integrated resort in the Cotai area of Macau. Wynn Palace features a 1,700-room hotel, meeting space, casino, spa, retail offerings, and food and beverage outlets. The company expects to open Wynn Palace in the first half of 2016. Other casino resorts being built in the Cotai area include Las Vegas Sands’ (LVS) Parisian Macau, Melco Crown‘s (MPEL) Studio City, and MGM Resorts’ (MGM) MGM Cotai. Exchange-traded funds (or ETFs) like Consumer Discretionary Select Sector Standard and Poors depositary receipt (or SPDR) fund (XLY) help investors gain exposure to these casino companies.
In July 2013, Wynn Resorts (WYNN) signed a $2.6-billion guaranteed maximum price (or GMP) contract for the construction of Wynn Palace. The total budget of the project is ~$4.1 billion. As of September 30, 2014, Wynn Resorts has invested ~$1.4 billion in the project.
On September 17, 2014, the Massachusetts Gaming Commission (or MGC) awarded Wynn MA, an indirect wholly owned subsidiary of Wynn Resorts, the Greater Boston (Region A) gaming license. Wynn Resorts will develop and construct a fully integrated resort in Everett, Massachusetts. On November 7, 2014, the gaming license awarded to the company became effective, and Wynn Resorts paid $85.0 million as a license fee.
Expansion at Macau
On April 21, 2010, Wynn Resorts opened Encore at Wynn Macau. This resort is an expansion of Wynn Macau, which adds a fully integrated resort hotel with ~410 luxury suites and four villas along with restaurants, additional retail space, and gaming space.
Expansion at Las Vegas
On December 22, 2008, Wynn Resorts opened Encore at Las Vegas. This is an expansion of Wynn Las Vegas. Encore at Las Vegas is located immediately adjacent to Wynn Las Vegas and features a 2,034 all-suite hotel, a ~72,000 square foot casino space, 12 food and beverage outlets, ~60,000 square feet of meeting space, and ~27,000 square feet of upscale retail outlets.