[toc]Following a successful quarter at the Wynn Palace in Macau, Steve Wynn is set to proceed with his Paradise Park project on the Las Vegas Strip.
The resort tycoon aims to commence construction before the year ends.
What does Paradise Park entail?
Plans for Paradise Park involve enlarging the area around the existing casino resorts, Wynn and Encore. The development is projected to cost $1.5 billion.
Wynn Resorts anticipates that the park will span 130 acres behind the two properties. Plans for the park incorporate a lake, a lagoon, sandy beaches, as well as retail and entertainment facilities.
The north end of the Strip is seeing an increase in the number of expansive luxury resorts.
The current location of the SLS Hotel and Casino was previously occupied by the Sahara.
In May 2016, Resorts World Casino received approval to start constructing its $4 billion casino in Vegas. The construction is now in progress, located across the street from the Wynn properties.
Why Wynn thinks now is the time to expand in Vegas
The Paradise Park project is more focused on utilizing profits from the new Wynn property in Macau than exploiting the Vegas economy.
The Wynn Palace in Macau, which commenced operations in August 2016, significantly contributed to the company’s fourth-quarter profits, boosting them by more than $350 million. The entire profit was attributed to this new Asian casino.
During the company’s most recent earnings call, Wynn discussed the quick commencement of the Palace.
“Wynn stated, “Our hotel occupancy at the Palace is slightly ahead now. We are operating within the range of 90 percent occupancy.”
Meanwhile, the revenue of Las Vegas properties in the fourth quarter decreased by two percent from 2015.
Wynn has been dreaming about the Paradise Park project for a few years now. Given the rapid success of Wynn Palace, he believes it’s the right time to go after it.
“He explained that they aim to significantly boost their non-casino revenue. Instead of investing in another casino, their plan is to enhance the Wynn and Encore properties with more entertainment attractions,” he said.
Will Wynn have time to spearhead a new project?
Wynn’s new role in the Republican National Committee (RNC) could potentially jeopardize the fast track he envisioned for the park.
Recently, President Donald Trump personally requested Wynn to serve as the RNC’s finance chair. Wynn agreed to the role but only on the condition that the RNC would adjust the role to limit his travel as chair.
Wynn, similar to Trump, has a history of donating to both Democratic and Republican causes. Given his close ties to President Trump, who is also a resort tycoon, it’s not surprising that Wynn contributed over $800,000 to Republican campaigns last year.
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