Revenue and occupancy decreased at Wynn Resorts' Las Vegas
hotels in the first quarter, which the company attributed to a fluctuation in
group business and not any market softness.
"A large group shift from Q1 to Q2 this year negatively
impacted RevPAR growth and food and beverage revenues in the quarter," CFO
Craig Billings said during Wynn's first quarter earnings call.
Billings said he expects to see an "offsetting
outperformance in RevPAR" for Las Vegas hotels in second-quarter results.
Revenue per available room (RevPAR) at the Wynn Las Vegas
and Encore hotel-casinos fell 2.1% to $279. Average daily rate (ADR) slipped 0.6%
to $338, while occupancy decreased from 83.9% to 82.6%.
Total Las Vegas revenue was down 7.1% to $401 million, attributed
to the group bookings shift and a decline in baccarat volume.
In Macau, Wynn saw mixed results. The Wynn Macau's revenue
dropped 15.3% to $523.9 million, with RevPAR and ADR flat and occupancy
The Wynn Palace, however, had a revenue increase of 9.1% to
$726.6 million, bolstered by 8.2% RevPAR growth and a 7.7% ADR increase.
Occupancy at the Wynn Palace grew from 96.8% to 97.2%.
Wynn Resorts CEO Matthew Maddox addressed investor concerns
over increased competition from emerging gaming markets in Asia.
"I just don't believe that Macau and Las Vegas are
going to be cannibalized by those small, tertiary jurisdictions," said
Maddox. "What always happens is that customers will try out the new
product, they'll go to a place where they're getting free money and big
discounts, but that never lasts. Customers with money and choice always go back
to the place that they enjoy the most, and you cannot replicate Las Vegas and
Macau anywhere else on the planet. I'm a big believer ... that Macau's and Las
Vegas' best days are ahead of them."
Maddox also touched on a ruling made last month by the Massachusetts
Gaming Commission allowing Wynn Resorts to retain its gaming license in the
state after investigations into the company's concealment of sexual misconduct
claims made by multiple women against its founder, Steve Wynn. That decision included
a fine against the company of $35 million, and Maddox said that Wynn Resorts is
currently weighing whether to file an appeal.
"We're still reviewing the decision as it relates to
some of the secondary and tertiary conditions imposed by the commission,"
he said. "We are ready to move forward with the opening of Boston Harbor.
We do not believe, if we choose to appeal, that it will impact our ability to
open the project at the end of June."