Wynn Resorts (NASDAQ:WYNN) 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?
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.