From yesterday's LVRJ:
Steve talked about this a bit at the shareholder's meeting. This has been a long term plan for quite some time.
Categories: Wynn Resorts
In April, Wynn said he had the financing for the $1.4 Billion Encore. If he intends to open in the first half of '08, I would think he'd have to start construction very early in '06. By that time, we'll see where the share price is, as well as Wall Street's sentiment for Wynn. I certainly wouldn't doubt him, but $1.4 Billion is a lot on top of Macau.
If I remember correctly, the Annual Report said the Urban Village would start to open in 2010, so the golf course probably has to go by '08 or the first of '09. The big IF in my mind is, can the Strip absorb two $4 Billion mixed use developments opening within a couple years of each other?
Unless there's international problems with China, Macau should be a real money machine for Wynn once it finally opens.
I would have to track down the quote but I read somewhere that they want to break ground for Encore in August of this year.
Will Vegas ever see a growth plateau? All these plans for more and more casinos/ hotels... The bubble has to flatten out at some point, no? Growth is obviously strong enough now, that investors still see these projects as highly profitable? It just staggers me that there's so much continued development.
This comes up a lot.
History says there is plenty of demand.
Here's some more info in this article:
I think it's interesting/amusing that the article about the Urban Village says "Word is that MGM Mirage is rolling out a dynamite, companywide yield-management system to set room rates across all properties." and then the article about the mergers states "...there is tremendous competition and little coordination, especially in room rates, between hotel-casinos owned by the same company" as "proof" that the mergers will not adversely affect competition.
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