[toc]Following a lucrative quarter for the Wynn Palace in Macau, Steve Wynn is set to move forward with his Paradise Park project on the Las Vegas Strip.
The resort tycoon aims to commence construction before the year concludes.
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 the park, which is expected to span 130 acres behind the two properties, to feature a lake, a lagoon, sandy beaches, and a retail and entertainment section.
The north end of the Strip is seeing an increase in the prevalence 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 commence construction of its $4 billion Vegas casino. The construction is presently happening across the street from the Wynn properties.
Why Wynn thinks now is the time to expand in Vegas
The Paradise Park project is not so much about leveraging the Vegas economy as it is about utilizing profits from the new Wynn property in Macau.
The Wynn Palace in Macau, which opened in August 2016, significantly boosted the company’s fourth-quarter properties, increasing them by just over $350 million. The entirety of the profits can be attributed to this new Asian casino.
During the latest earnings call of the company, Wynn discussed the quick start of the Palace.
“Wynn stated, “Our hotel occupancy at the Palace is slightly ahead now. We are operating within a 90 percent occupancy range.”
Meanwhile, the revenue of the Las Vegas properties in the fourth quarter was down two percent from 2015.
Wynn has been dreaming about the Paradise Park project for a few years now. Given the quick success of Wynn Palace, he believes it’s the right time to go ahead with it.
“He explained that we aim to significantly increase our non-casino revenue. Instead of investing in another casino, the park plans to introduce more entertainment attractions at the Wynn and Encore properties.”
Will Wynn have time to spearhead a new project?
Wynn’s new role with the Republican National Committee (RNC) could potentially jeopardize the rapid progress he envisions for the park.
Recently, President Donald Trump personally requested Wynn to act as the finance chair for the RNC. Wynn consented to accept the position, but only after the RNC agreed to alter the role to minimize his travel as chair.
Wynn, similar to Trump, has a history of donating to both Democratic and Republican causes. Given his close ties with fellow resort tycoon President Trump, it’s not surprising that Wynn contributed over $800,000 to Republican campaigns last year.
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