Wynn Macau EBITDAR up 10.9% as parent posts higher profit, unveils Enclave tower plan

Wynn Macau Ltd reported a 10.9% year-over-year increase in adjusted property EBITDAR to USD279.4 million in the first quarter, while parent Wynn Resorts Ltd posted higher profit and revenue.

According to the company’s Thursday filing, operating revenue for Wynn Resorts rose to $1.86 billion from $1.70 billion a year earlier, a gain of about 9.4% year over year. Net income attributable to the company increased to $120.5 million from $72.7 million, up about 65.8%.

“Our first quarter results reflect the strength of Wynn’s business across all of our markets,” said Craig Billings, CEO of Wynn Resorts, Limited in a press release accompanying the results, adding, “Las Vegas delivered another quarter of EBITDAR growth and continued to make gains in gaming market share. In Macau, we saw a meaningful increase in gaming volumes year-over-year alongside healthy market share, and we were pleased to increase the dividend from Wynn Macau, Limited.”

Groupwide adjusted property EBITDAR climbed to $562.4 million from $532.9 million.

Wynn Resorts Ltd also announced Friday that its board of directors had declared a cash dividend of 25 cents per share, payable May 29, and repurchased 528,667 shares for $53.8 million.

Macau performance

On the Q1 earnings call, Billings said that “premium demand continues to drive the Macau market,” adding that an expanded Chairman’s Club opened to “strong customer reception.” In the first quarter, Wynn Palace generated operating revenue of $659.3 million, up from $535.9 million a year earlier, while adjusted property EBITDAR rose to $203.8 million from $161.9 million.

Wynn Macau recorded operating revenue of $329.9 million, essentially flat year over year, as adjusted property EBITDAR declined to $75.6 million from $90.2 million.

Wynn Palace’s mass-market table games win percentage improved to 26.6% from 24.8% a year earlier, while VIP win as a percentage of turnover rose to 3.11% from 2.61%.

At Wynn Macau, mass-market win percentage fell to 15.1% from 18.7%, and VIP win dropped to 0.39% from 1.09%.

UAE project outlook

Wynn continues to position the United Arab Emirates (UAE) as a long-term growth market while acknowledging new challenges at the Wynn Al Marjan Island development during the Q1 call. Billings noted during the call that the UAE project has faced “logistical and shipping challenges in the region,” but added shipments have largely continued, with Wynn “rerouting shipments and sourcing alternative materials where needed.”

He described the situation as manageable but said, “We do expect a modest delay in our opening timeline,” adding the company will quantify the delay in coming months.

For now, Wynn still expects the resort to open in 2027.

In the first quarter, Wynn contributed $100.1 million, bringing total cash contributions to $1.01 billion.

New 432-key all-suite hotel at Wynn Palace

On the call, Billings announced a new investment at Wynn Palace, the Enclave, a 432 all-suite hotel tower expected to increase room count by 25% and suite inventory by 50%.

The project, located adjacent to the existing Cotai resort, is designed to capture unmet demand, with Billings noting Wynn Palace runs at essentially full occupancy every night.

Construction of the Enclave is expected to begin later this year and is projected to take two-and-a-half years.

The Wynn CEO described the planned Enclave development at Wynn Palace as a “truly spectacular” addition to what he called the market’s leading gaming floor, saying the investment reflects strong demand in Cotai and consistently high occupancy at the resort.

He said the 432-room all-suite tower will be built adjacent to Wynn Palace and connected to its east entrance, a design intended to channel “more foot traffic into gaming and our existing food and beverage outlets.”

On concerns the Enclave could cannibalize Wynn Macau, Billings dismissed the idea, stating, “No, there’s no cannibalization risk,” adding the expansion is aimed at meeting Cotai demand rather than shifting play.

“It is true that on peak days, we’ve talked about this on prior calls, at peak events, we do feel our table count. Beyond those peak events, we have plenty of table capacity at Wynn Palace, and we just expanded the Chairman’s Club so that we can satisfy our best customers. I would not think about it as cannibalization of Wynn Macau,” Billings said.

Analysts questioned whether the planned Enclave tower can generate returns sufficient to justify its $900 million to $950 million price tag. Billings responded that the project’s structure supports strong economics, as it will not include a casino and will feature limited food and beverage offerings, allowing it to drive traffic to existing resort amenities. He said the development could produce between $150 million and $175 million in EBITDA, and described the move as “a real no-brainer.”

On capital spending, Chief Financial Officer Craig Fullalove said final government approvals for the Enclave are beginning to come together, with construction expected to begin once approvals are secured.

He added that, as final government approvals begin to fall into place, spending on the Enclave in 2026 will be limited to piling and early development work.