After an unusual shift in group business resulted in
decreased revenue and occupancy in Q1, Wynn Resorts said investors should expect
a big rebound in Q2. Wynn delivered.
The company's two Las Vegas resorts -- Wynn and Encore -- recorded an increase in revenue per
available room (RevPAR) of 9.5% to $300, while average daily rate
was up 6.4% to $333. Occupancy jumped 2.5 percentage points to 90.1%.
Total Las Vegas revenue grew 5.1% in the quarter, to $464.1
million, boosted primarily by a 17.7% surge in casino revenue.
Wynn Resorts CEO Matt Maddox called it an
"extraordinary quarter" during the company's earnings call on
"It was the first time in over five years where our
RevPAR increased by more than 9.5%, but what I found much more interesting was
our focus on the casino, which for the last five to six years had largely been
ignored. Our domestic table games business was up 12% this quarter, when the
overall Las Vegas Strip was down 6%," Maddox said.
Maddox added that the company is forecasting continued
growth, spurred in part by the addition of a 400,000-square-foot convention
center at the Wynn Las Vegas that's expected to open in the next six months.
Additionally, two new restaurants from chefs Thomas Keller and Enrique Olvera
are scheduled to debut at the property in 2020.
In Macau, Wynn Resorts reported strong results, with RevPAR
rising 5.3% to $258 at the Wynn Palace and up 2.6% to $278 at the Wynn Macau.
Likewise, total operating revenues at both the Wynn Palace and Wynn Macau grew,
increasing 1.3% to $628.9 million and 0.6% to $546.5 million for the quarter,
Maddox touted the late June opening of the Encore Boston
Harbor, telling investors that Wynn Resorts plans to turn the property into the
"top grossing casino in the Northeast."
"Our hotel is beginning to ramp, and we are working on
various offers and promotions to really understand the highly competitive slot
market in the Northeast," said Maddox. "[But] we're making sure that
we're not going to get into a promotional war with our competitors, who are
quite nervous about Encore Boston Harbor. We are really focused on guerrilla
Wynn Resorts reported a total revenue increase of 3.3% to
roughly $1.66 billion for the quarter.