Wynn Resorts' Crystal Pavilion to begin construction in late 2021

Thursday 11th of July 2019

Construction for Wynn Resorts’ Phase 1 South Parcel Pavilion and 650 room hotel tower is expected to commence in late 2021, with costs estimated at US$2 billion.

Located in a parcel of land adjacent to Wynn Palace, the proposed “Crystal Pavilion” is described by the company as a “must-see” tourist attraction, featuring an innovative architectural design with an all-glass structure.

The expansion will also include two-phased hotel towers with a total of 1,300 luxury rooms and suites, one-of-a-kind public entertainment attractions, a 270 degree fully immersive entertainment theatre and a food hall offering a variety of regional Asian cuisines.

According to the company’s presentation, the project is expected to complete in 2024.

Bernstein analysts said the non-gaming focused expansion as a long-term growth driver for Wynn but noted that the near-term impact is limited.

Other notable projects include the renovation of the Encore tower at Wynn Macau, which is expected to complete in 19Q4. Management has advised that the total project cost for 400 rooms is $125 million. It is also adding new F&B near the West Casino to create a more premium experience for its guests.

The investor day also offered an opportunity for Wynn Resorts management to share their thoughts on the company’s financial performance in the near future.

Management expects 2021E adjusted property EBITDA to be $2.4 billion, and 2021E revenue at $8.1 billion.

However, Bernstein analysts believe the estimates have been overly conservative, particularly on Macau (management expecting 3.5 percent CAGR through 2021E), while the company's Macau property EBITDA estimate is 12 percent lower than Bernstein’s estimates.