Wynn Resorts will build a fourth Las Vegas hotel with up
to 3,000 rooms on the land where the New Frontier Hotel once stood on the Las
Vegas Strip, CEO Steve Wynn said during the company's fourth-quarter earnings
The property would join three others in the Wynn Resorts
complex: the company's two existing hotels, the Wynn and the Encore, which have
a combined total of about 4,750 guestrooms, and a third, 1,500-room hotel in
development as part of the company's Paradise Park projects.
Wynn said he has no worries about having 8,000-plus
guestrooms in the complex, calling the company's hotel business "extremely
"With our room rates, we operate at 50% to 60% margins
in the hotels. And the more hotel rate we get, every dollar goes to the bottom
line," he said. Wynn estimated that the company's ratio of non-gaming to
gaming revenue is in the range of 60/40 to 65/35.
He said the standard guestroom in the new hotels could be a
650-square-foot suite with his and her bathrooms and 80-inch televisions, with
expected nightly rates of $400 or more.
"There is nowhere in the world you can get a room like
that [at that rate,]" Wynn added. "And in a town of 160,000 rooms, in
the middle of 6 million square feet of convention space and at least 500,000 or
600,000 feet of our own, in terms of ballrooms and meeting rooms at the highest
caliber, I'm feeling pretty safe. And I'm going to get those damn buildings up
as fast as I can, because I want to capture more of the absolutely inevitable
visitor and tourist traffic that Las Vegas will experience in the next 15 to 20
Wynn acquired the 34-acre site plus four adjacent acres in
December for $336 million. The tract is on the west side of the Strip, across
the boulevard from the Wynn Las Vegas. The CEO said the company has been
calling the area "West Wynn."