Please ensure Javascript is enabled for purposes of website accessibility

6 Things You Didn't Know About Wynn Resorts Ltd.

By Daniel Sparks - Jul 18, 2017 at 8:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Has Wynn Resorts' soaring stock price caught your interest? Here are some facts you might want to know about the hotel and casino operator.

Wynn Resorts (WYNN -0.15%) has been on a tear recently. Shares are up an impressive 44% in the past six months as the company's Macau properties prove to be lucrative.

As both its stock price and revenue surge, many investors who normally might shun the hotel and casino industry may be wanting to learn more about the companies behind the world's biggest mega-casinos. Why not start with one of the world's most successful casino operations, Wynn Resorts, founded and led by none other than casino mogul Steve Wynn himself?

Wynn Palace in the Cotai district of Macau.

Wynn Palace in the Cotai district of Macau. Image source: Wynn Palace.

1. Wynn Resorts is more than just Wynn Las Vegas.

Beyond Wynn Las Vegas, Wynn Resorts counts a number of other hotels and casinos under its ownership. The Encore, adjacent to the Wynn Las Vegas tower, is also a Wynn property. In addition, Wynn Resorts operates Wynn Macau and the more recently opened Wynn Palace, also located in the Cotai district of Macau. 

2. Rooms account for just a fraction of Wynn Resorts' revenue.

Despite boasting about 7,500 rooms between all of its properties, room revenue represents a small percentage of Wynn Resorts' total revenue. For instance, in Wynn Resorts' first quarter, rooms accounted for just 12% of total revenue. The bulk of revenue is driven by its casinos. Casino revenue in Wynn Resorts' first quarter was $1.15 billion, or 78% of its total $1.48 billion of first-quarter revenue.

3. Wynn Palace is driving massive revenue growth.

With Wynn Palace opening in August 2016, the casino has been a hit. In Wynn's most recent quarter, total Wynn Resorts revenue was up about 48% compared to the year-ago quarter. This sharp increase was primarily driven by $475.8 million in revenue generated from the new Macau-based resort. 

4. Wynn is building a resort near Boston.

Last July, Wynn Resorts started construction on a property in Everett, Massachusetts -- a short drive from Boston. The resort, which will be called Wynn Boston Harbor, is an approximately 34-month project that began construction last July. Wynn plans to open the resort around April or May of 2019.

5. The Wynn Boston Harbor project is over budget.

Just a few quarters ago, Wynn was planning on spending $1.9 billion to $2.1 billion on building its new Wynn Boston Harbor resort, but the budget has recently expanded to $2.4 billion. Management pointed to higher-than-expected sub-contractor bidding and the addition of more convention space as reasons for the higher budget.

6. Steve Wynn helped oversee the construction of other famed hotels and casinos.

Steve Wynn's assent to a casino and hotel real estate guru primarily took place under Mirage Resorts, before it merged with MGM Grand in 2000. At Mirage Resorts, Wynn helped launch The Mirage, Treasure Island, and the Bellagio, among other notable hotels and casinos. 

Investors may be right to be interested in Wynn Resorts after the stock's recent run-up. With Wynn well-positioned in the hot Macau market, and the Wynn Boston Harbor launch on the horizon, Wynn Resorts' recent growth may be just getting started.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$68.23 (-0.15%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.