Casino operator Wynn Resorts Ltd expects the current regional conflict in the Middle East involving the United States and Iran to lead to a “modest delay” in the opening of its Wynn Al Marjan Island project in the United Arab Emirates (UAE). Meanwhile, the company has announced plans to develop a new all-suite hotel tower – with no gaming facilities – next to its existing Wynn Palace casino resort in Macau’s Cotai district.
That is according to Craig Billings, chief executive of Wynn Resorts Ltd, which controls Macau-based casino operator Wynn Macau Ltd.
He was speaking on Thursday during Wynn Resorts’ call to discuss first-quarter earnings.
The new hotel tower (pictured in an artist’s rendering) – branded as ‘The Enclave at Wynn Palace’ – will feature 432 suites and sit directly adjacent to, and connect with, the east entrance of Wynn Palace, Mr Billings said.
Construction is likely to start in the second half of 2026, and take two-and-a-half years, according to a company presentation.
“This is a US$900-million to US$950-million addition that will increase the existing Wynn Palace room count by 25 percent, and our suite count by 50 percent, driving more foot traffic into gaming and our existing food and beverage outlets,” he added.
Wynn Resorts’ management stated during the call that “final government approvals are starting to come together” for the new tower.
It added that capital expenditure on the Enclave tower in 2026 “would be limited to some piling and early development works”.
“Wynn Palace runs at essentially full occupancy every night,” Mr Billings said, explaining the need for additional hotel room capacity. “When you’re at 99-percent occupancy, you’re not making a speculative bet by adding rooms; you’re clearly capturing demand that already exists and that you’re currently turning away.”
He confirmed that the new tower “does not have a gaming element”, and has “very, very modest food and beverage”, because it will be directly attached to the existing Wynn Palace facility.
The executive added that he did not expect the new project to cause significant disruption to the existing property, “because it is a relatively constrained portion of our plot.” He also confirmed that plans for such a tower had existed previously, but had been shelved and were now being revisited and updated.
Mr Billings explained that the base room product at Enclave would be “slightly larger” than the base room product at Wynn Palace.
“The way I would describe it in terms of aesthetic finish is that it is complementary to our existing product,” he said. “It’s not the same, nor is it a radical departure that would feel as though it was off-brand.”
Al Marjan delay
Discussing developments in the Middle East and their impact on the Wynn Al Marjan project, Mr Billings said Wynn Resorts’ management expected “a modest delay” in its opening timeline.
“I expect that we will quantify that in the coming months,” he added.
“We are forging ahead with the project every day and we look forward to opening in 2027,” Mr Billings later said during the call.
The US$5.1-billion property – in which Wynn Resorts has a 40-percent equity stake – had been due to open in spring 2027.
The executive stated that construction at Wynn Al Marjan “has continued to progress” despite the regional conflict in the Middle East, “with over 22,000 workers on site”.
The casino firm had previously noted that some halt to work had occurred at the site in Ras Al Khaimah, part of the UAE.
“While we have faced logistical and shipping challenges in the region, deliveries have largely continued and we are rerouting shipments and sourcing alternative materials where needed based on conditions,” he said.
He added: “Today, these challenges are manageable, though we are realistic that the picture could shift as the situation evolves.”
Mr Billings said he was confident that, as the region “stabilises”, authorities in the UAE “will find smart ways to accelerate tourism” back into the country.
He added that, for now, it was “too early” for Wynn Resorts to revisit the performance estimates it had previously presented regarding the Wynn Al Marjan project.
“We remain as convicted in the project as we were before the conflict began,” he said.
During the conference call, Wynn Resorts’ management also spoke briefly about the group’s performance in Macau during the recent Labour Day holidays, a festive period for the Chinese mainland.
“It was good,” Mr Billings said, adding that casino drop “was up year on year, and we felt good about the holiday”.
The executive also discussed performance at the expanded Chairman’s Club gaming area at Wynn Palace, which opened during the first quarter.
“The early signs are actually quite good,” Mr Billings said. But he admitted it would “take a little bit” for it to begin generating incremental market share within its customer base.
During the call, the group’s management dismissed concerns about intense competition in Macau regarding the promotional environment used to attract and retain gaming patrons, stressing that Wynn remained disciplined in terms of promotional spending.
“I don’t think we’ve seen it necessarily change substantially. It’s day-to-day combat,” management said during the call.
