by Christopher Freeburn | June 5, 2012 11:09 am
Wynn Resorts (NASDAQ:WYNN) will build a second casino and resort in Macau. The new gaming destination will feature a 2,000-room luxury hotel, 10 restaurants, a myriad of high-end retail boutiques, spas, a night club and, of course, 500 tables for gambling.
The price tag for all this gaming opulence: $4 billion.
Wynn has already received approval from Macau authorities to begin work on the project, which is expected to take up to four years to finish.
Once construction is complete, air-conditioned gondolas will ferry guests across a specially created lagoon in front of the casino, which is being built on 51 acres of reclaimed swampland.
Given the current economic downturn in Europe and the U.S., and with even China showing signs of a slowdown, it might not seem like the right time to launch such an ambitious luxury project. Wynn acknowledged the global economic situation, but said Macau appeared to be exempt from the outside world’s volatility.
Still, he noted that Macau’s gaming growth would not continue indefinitely. At $33.5 billion in 2011, the former Portuguese colony’s annual gaming revenue was more than five times greater than that of Las Vegas. Wynn Resorts’s generated more than 70% of its first-quarter earnings in Macau.
Shares of Wynn Resorts rose just under 1% in Tuesday morning trading in New York.
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