The US high-end hotel and casino operator Wynn Resorts revealed plans to expand its non-gambling properties on the territory of Macau. The expansion in one of the largest gambling hubs on a global scale would include a museum and a theater. The expansion project is estimated at about $2 billion.
As unveiled by the company, the Crystal Pavilion complex is planned to be adjacent to the Wynn Palace situated on the Cotai Strip. The project includes the establishment of two hotel towers, gardens and interactive sculptures. An art museum is to be established as part of the project, in collaboration with the young Italian sculptor Edoardo Tresoldi.
The architect Robert A.M. Stern, who the gambling giant is working with, has also designed a glass and steel structure which is to serve as a special performance space. The construction of the complex is set to start in 2021, and the official opening is expected to take place in 2024.
Despite there has been some concern due to recent trade tensions with China, the Chief Executive Officer of the gambling and entertainment behemoth has decided to proceed with expansion plans, as initially intended. Casino businesses operating in the region have been forced to seek ways to boost their presence by investing in non-gambling assets by the Chinese Government which on its turn is trying to make the local tourism sector more diversified.
Macau casino companies are expected to see their current operating licenses come up for renewal over the next few years. In particular, Wynn Resorts’ license is due in 2022.
A Further $125 Million Investment in Wynn Palace’s Renovation Planned, Too
Apart from the construction of the Crystal Pavilion complex, Wynn Resorts has also unveiled plans to invest a further $125 million to renovate its original resort in Macau, the Wynn Palace. On the other hand, the new facility is expected to be visited from 7 to 10 million people every year.
The gambling operator also revealed that there would be a later phase of extension situated on a “north parcel”, but its cost and timetable would be officially announced at a later stage.
The expansion of its non-gambling attractions in Macau is not the only part of Wynn Resorts’ plans for the future. The company has also entered the competition for a license to operate an Integrated Casino Resort in Japan, which has recently opened its casino gambling market. As part of the presentation to investors that took place at the company’s new Encore Boston Harbor resort, Wynn Resorts also revealed an illustration of an urban waterfront resort in Japan.
Apart from the announcement of the investments set to be made in the company’s non-gambling assets, the US hotel and gambling operator also provided a forecast for its future revenue. The company projected 22% growth of its revenue through 2021, as well as a 28% increase in its earnings before interest, taxes, depreciation and amortization (EBITDA). Despite the positive forecast provided by the gambling giant, some analysts explained that they were expecting higher projections from Wynn Resorts, describing the long-term financial targets released at the most recent investor meeting as “slightly more conservative” than initially expected.