Enclave hotel in Macau a ‘no brainer’, UAE resort handed to ops team by July 2027: Wynn CEO

The Wynn group’s investment in the 432-key, all-suite The Enclave hotel (pictured in a rendering) at Wynn Palace, in Macau’s Cotai district, is a “no brainer” given that the brand’s existing hotels in the city were running at circa 99 percent occupancy. So said Craig Billings, chief executive of Wynn Resorts Ltd, on the Thursday call to discuss third-quarter earnings. The firm is the parent of Wynn Macau Ltd, which runs Wynn Macau in the city’s downtown area, as well as Wynn Palace in Cotai. The CEO noted: “The challenge that Macau has, is they don’t have enough hotel rooms… You have a market that does five times the gaming revenue of the Las Vegas Strip, but has… 30 percent of the hotel rooms.” He stated: “That’s really the challenge for the market and diversification of the market. The demand is absolutely there… It’s just a question of how you can utilise your rooms. It’s also why The Enclave is such a no-brainer.” Mr Billings added: “We run 99 percent occupancy. We tack on 432 suites, that’s obvious EBITDA [earnings before interest, taxation, depreciation and amortisation].” Per a May announcement, The Enclave has a US$950-million price tag. Mr Billings said on Thursday that construction had begun in the third quarter, with opening expected in early 2029. Management was also asked on the call about the Wynn group’s contribution to a Macau-government “guidance fund” to support the city’s economic diversification. In a Hong Kong filing last month, Wynn Macau Ltd said its concession-holding subsidiary, Wynn Resorts (Macau) Ltd, had committed up to MOP1.37 billion (US$169.1 million) to the fund. The company said the contributions would constitute non-gaming investment and count towards its committed investment obligations under its gaming concession contract. On Thursday’s earnings call, Craig Fullalove, Wynn Resorts’ chief financial officer, noted: “From an accounting standpoint… the benefit of the fund is that it ultimately will sit on balance sheet as opposed to within operating expenditure, so that’s obviously better from an EBITDA standpoint.” UAE progress Mr Billings was asked about future development opportunities following the U.S. midterm elections. In his response, he highlighted the potential for further investment in the United Arab Emirates (UAE), where the group is developing the US$5.7-billion Wynn Al Marjan Island resort in Ras Al Khaimah. Wynn Resorts is a 40 percent equity investor in the UAE project, which has seen its opening timeline pushed back to September 2027 – from an earlier target of spring 2027 – amid the U.S.-Iran conflict in the region . Democrats won majorities in both the U.S. Senate and House of Representatives in Tuesday’s elections, with party leaders pledging to seek an end to U.S. involvement in the war. Mr Billings stated: “If the UAE opens [for normal business] as we believe it will open, and of course the election had an impact on the likely trajectory of the conflict in the region as well… then we have a land bank there, and we should think about how we’re going to use that land bank, because there’s significant returns to be earned there.” The CEO also noted: “We acknowledge the uncertainty in the region, but as I’ve said before, we are firm believers in the resilience and adaptability of the UAE. I believe Wynn Al Marjan Island will be the most exciting integrated resort opening globally in over a decade.” Mr Billings said fitting-out work was under way, with initial areas of the resort to be handed over to the operations team early in 2027. The phased handover would continue through July, with the operations team having “full control in late July”, ahead of the September opening. Hiring of the operations team was also “well under way”. The CEO stated that even with a 1,500-key hotel, “demand exceeds supply”. He said the Wynn group would be launching the only resort of its kind available for “thousands of miles”. Mr Billings added: “You have an extremely wealthy local population, many of whom are expats, many of whom are accustomed to to gaming and casino visitation. “You have certain demographics that have no problem travelling there today…. we remain pretty bullish on the opportunity.” The CEO was also asked on the call whether he had concerns that Nevada – Wynn Resorts’ home state, as well as a key operational hub for MGM Resorts International, the parent of Macau operator MGM China Holdings Ltd – might impose higher state taxes on gaming, after the state governor’s job passed to a Democrat after the midterms. Mr Billings said: “Nevada is a model for how the state and the industry work together. I will not be up nights worrying about gaming tax increases here. “The incoming governor is someone we know well and have great respect for, and I feel very, very comfortable that governance in Nevada remains as sane as it has for 70 years.”