LAS VEGAS (KLAS) — Wynn Resorts will begin a $200 million “full remodel” of hotel rooms beginning in July — the first renovation since 2010 — in preparation for a big upswing in business expected in 2022.
The company describes the remodel as a “competitive advantage” over other Strip properties as convention business begins to return to Las Vegas.
And Wynn Resorts has some convention business under its belt for the first time since the pandemic began. Officials said 600 customers who were part of a recent group meeting gave them insights into customer reactions to steps to keep people safe as business gets back to normal.
The news came as Wynn Resorts announced it is merging its interactive division, WynnBET, with a company owned by Vegas Golden Knights owner Bill Foley.
Both announcements came during Wynn Resorts’ investor call on first-quarter earnings.
The collaboration with Foley comes with Wynn’s investment commitment of more than $600 million. The company, WynnBET, has 300 employees currently. The merger of WynnBET and Foley’s company, Austerlitz, brings star power from both sides.
The jockeying to grab the lead in online casinos and sports betting continues to be a priority for big casino companies in Las Vegas. Wynn Resorts CEO Matt Maddox said the business has the potential to drive “$40 billion over the next five years.”
Maddox said WynnBET remains a subsidiary of Wynn Resorts, which holds 58% ownership.
First quarter earnings were once again a reminder of the pandemic, and comparisons to the first quarter of 2020 showed how the company struggled to match revenues from last year — but also showed Wynn had achieved higher profits because of cost-cutting moves.
Operating revenue was $725.8 million, down 23.9% from the first quarter in 2020, when revenue was $953.7 million.
In Las Vegas, operating revenues were $178 million, down 44.8% from Q1 in 2020, when revenue was $323.8 million.
“Our first quarter results reflect continued progress in our business as consumers began to once again travel to their favorite leisure and gaming destinations,” Maddox said.
But in a departure from usual statements to investors, Maddox wanted to talk about the present — and what it could mean for the future.
Less than halfway through the second quarter, revenues have already exceeded the first quarter, Maddox said. Business started to come back strong during March Madness — the NCAA basketball tournament.
Maddox talked about the “roaring consumer,” and what the company expects room reservations to get back into the 90% range this month.