Macau (MNA) – Wynn Macau Ltd. announced it will invest US$2 billion (MOP16.1 billion) to expand its Wynn Palace resort, according to a note of the Hong Kong Stock Exchange on Thursday.
Wynn Macau revealed it will expand its ‘Crystal Pavilion’ at the Cotai property – which all constructed with glass – with about 650 luxury rooms, 650 suites, and a 270 ‘degree fully immersive’ entertainment theater.
The ‘Crystal Pavilion’ project is expected to separate into two construction phases, as the first phase of South Parcel pavilion and hotel tower with about 650 rooms will start in 2021 and is believed to take above 36 months.
The cost and timing of the stage, located in the north parcel hotel tower, are yet to be discussed.
The targeted adjusted property EBITDA return on investment is about 15 to 20 per cent, while Wynn expected about 7 to 10 million visitors for the ‘Crystal Pavilion’ annually.
Meanwhile, Wynn Macau estimated that gross gaming revenues would grow at a 3.5 per cent compound annual growth rate through 2021, as results would be driven by the mass market and VIP would remain stable.
Wynn expected a 16 per cent growth in total GGR share by 2021 due to the ‘neighborhood improvement’ on Cotai, the return of premium customer as well as the West Casino expansion drives share gains at Wynn Macau in 2020.
Brokerage Sanford C. Bernstein commented on the expansion, stating that it could be a ‘long-term growth driver for Wynn’, however its near-term impact would be ‘limited’.
