When Steve Wynn purchased the former Alon / Frontier land last month nobody really knew what he was going to do with it. The common thought was that Wynn would sit on the land and save it for development sometime in the distant future.
Turns out Steve wants to build, and build fast. Wynn Resorts wants to develop this land (along with their Golf Course / Paradise Park project) as fast as possible and is going full speed ahead on Las Vegas development.
Wynn will be building a two to three thousand room new hotel on the Alon land in a project they are calling West Wynn. Steve has been thinking about this project for a long time, and always thought he would end up acquiring the property.
The West Wynn property (or is it Wynn West?) will be connected to Wynn proper via an air conditioned walkway over the Las Vegas Strip.
Steve Wynn's bullishness on Las Vegas seems to be sparked by the new tax reform bill, along with the company's strong results in Macau.
With Wynn looking to build, this could be the much needed boost for the North Strip we've been waiting for. If Resorts World and Fontainebleau (now Project Blue) get underway the North Strip could become a lot more exciting.
Showing posts with label Wynn Resorts. Show all posts
Showing posts with label Wynn Resorts. Show all posts
Tuesday, July 25, 2017
Wynn Second Quarter 2017 Earnings
Wynn Resorts released second quarter 2017 earnings today and held their earnings conference call. Revenue and net income were both up year over year due to the addition of Wynn Palace in Macau and helped by higher hold percentage in both Las Vegas and Macau.
Steve Wynn discussed the plans for the redevelopment of the Wynn golf course in Las Vegas. It appears that plans for the course are on track and drawings are being finalized.
The golf course will be redeveloped to include a lagoon along with new hotel rooms and convention space.
Steve Wynn commented that this land is extremely valuable due to its proximity to the Las Vegas Convention Center along with the Sands Expo Center.
Wynn also updated operations in Macau. Wynn Palace is doing well but is currently being somewhat adversely affected by construction at the neighboring MGM Cotai resort being built.
Back stateside Wynn Boston Harbor opening date will be in 2019 with construction now well underway. The company is also buying more property in the Boston / Everett area with an eye on future expansion.
Steve Wynn discussed the plans for the redevelopment of the Wynn golf course in Las Vegas. It appears that plans for the course are on track and drawings are being finalized.
The golf course will be redeveloped to include a lagoon along with new hotel rooms and convention space.
Steve Wynn commented that this land is extremely valuable due to its proximity to the Las Vegas Convention Center along with the Sands Expo Center.
Wynn also updated operations in Macau. Wynn Palace is doing well but is currently being somewhat adversely affected by construction at the neighboring MGM Cotai resort being built.
Back stateside Wynn Boston Harbor opening date will be in 2019 with construction now well underway. The company is also buying more property in the Boston / Everett area with an eye on future expansion.
Tuesday, January 03, 2017
2016 Las Vegas Stock Recap
With the calendar now showing January 2017, let's take a look back and see how Las Vegas stocks did in 2016.
The big three Las Vegas stocks - MGM Resorts International, Wynn Resorts, and Las Vegas Sands all had good years increasing by more than 20% each. The companies rode the wave of a recovering Macau market combined with strong non-gaming Las Vegas metrics.
In Macau Wynn Palace opened on the Cotai Strip in August. Sands opened The Parisian a few weeks later in in September. Meanwhile in the United States MGM National Harbor near Washington DC was opened in December to capacity crowds.
Caesars Entertainment stock finished the year up just over 7%. Caesars is still involved in seemingly never-ending bankruptcy litigation, but the stock could have some speculation value if they are able to escape bankruptcy with most of the company still in-tact.
Regional operators Boyd Gaming and Penn National didn't fare as well as their international counterparts. Boyd was up a slight 1.5% as they integrated their new Aliante and Cannery acquisitions. Penn was down 13.9% perhaps negatively affected by the anticipated opening of MGM National Harbor stealing business from their Charles Town property.
2016 Las Vegas stock results: (not including dividends)
The big three Las Vegas stocks - MGM Resorts International, Wynn Resorts, and Las Vegas Sands all had good years increasing by more than 20% each. The companies rode the wave of a recovering Macau market combined with strong non-gaming Las Vegas metrics.
In Macau Wynn Palace opened on the Cotai Strip in August. Sands opened The Parisian a few weeks later in in September. Meanwhile in the United States MGM National Harbor near Washington DC was opened in December to capacity crowds.
Caesars Entertainment stock finished the year up just over 7%. Caesars is still involved in seemingly never-ending bankruptcy litigation, but the stock could have some speculation value if they are able to escape bankruptcy with most of the company still in-tact.
Regional operators Boyd Gaming and Penn National didn't fare as well as their international counterparts. Boyd was up a slight 1.5% as they integrated their new Aliante and Cannery acquisitions. Penn was down 13.9% perhaps negatively affected by the anticipated opening of MGM National Harbor stealing business from their Charles Town property.
2016 Las Vegas stock results: (not including dividends)
| Company | Symbol | Start | End | Change |
| MGM | MGM | 22.72 | 28.83 | +26.9% |
| Wynn | WYNN | 69.19 | 86.51 | +25% |
| Sands | LVS | 43.84 | 53.41 | +21.8% |
| Caesars | CZR | 7.89 | 8.50 | +7.7% |
| Boyd | BYD | 19.87 | 20.17 | +1.5% |
| Penn | PENN | 16.02 | 13.79 | -13.9% |
Thursday, May 05, 2016
MGM Wynn and Caesars Talk Results
It was a bonanza of Las Vegas casino company earnings results today. MGM, Wynn, and Caesars all reported their first quarter 2016 results and held earnings conference calls.
MGM Resorts International focused on the Profit Growth Plan (PGP) during their conference call. PGP is the company's plan to increase profits by correcting inefficiencies in the operation. Examples would be consolidating linens and toiletries across all of the company's properties instead of using 14 different types. PGP is also the program responsible for MGM's upcoming parking garage fees. There wasn't much Las Vegas development news this time, but CEO Jim Murren further hinted at the upcoming re-branding of the Monte Carlo. He mentioned that the new Monte Carlo theater would host "A+ residency acts."
Steve Wynn spent much of the Wynn Resorts earnings call talking about the proposed Wynn Paradise Park development. Wynn mentioned that the lagoon coastline was already being expanded by 600 feet, and that zip-lines would be an available attraction. Wynn Paradise Park will have a 1000 room hotel with balcony rooms facing the lagoon and fireworks show. Steve Wynn thinks these balcony rooms will be the most sought-after in all of Las Vegas.
Caesars Entertainment held their earnings conference call at the same time as Wynn's. I guess when you're going through a bankruptcy you want as little attention as possible - and it worked since only one analyst asked a question in the 30 minute call. Operationally, Caesars highlighted strong trends in occupancy and ADR due in part to room renovations. Caesars also talked about their new self service check-in kiosks. Entertainment and dining offerings were also seen as a positive, with In-N-Out Burger coming to the Linq Promenade being the most exciting.
MGM Resorts International focused on the Profit Growth Plan (PGP) during their conference call. PGP is the company's plan to increase profits by correcting inefficiencies in the operation. Examples would be consolidating linens and toiletries across all of the company's properties instead of using 14 different types. PGP is also the program responsible for MGM's upcoming parking garage fees. There wasn't much Las Vegas development news this time, but CEO Jim Murren further hinted at the upcoming re-branding of the Monte Carlo. He mentioned that the new Monte Carlo theater would host "A+ residency acts."
Steve Wynn spent much of the Wynn Resorts earnings call talking about the proposed Wynn Paradise Park development. Wynn mentioned that the lagoon coastline was already being expanded by 600 feet, and that zip-lines would be an available attraction. Wynn Paradise Park will have a 1000 room hotel with balcony rooms facing the lagoon and fireworks show. Steve Wynn thinks these balcony rooms will be the most sought-after in all of Las Vegas.
Caesars Entertainment held their earnings conference call at the same time as Wynn's. I guess when you're going through a bankruptcy you want as little attention as possible - and it worked since only one analyst asked a question in the 30 minute call. Operationally, Caesars highlighted strong trends in occupancy and ADR due in part to room renovations. Caesars also talked about their new self service check-in kiosks. Entertainment and dining offerings were also seen as a positive, with In-N-Out Burger coming to the Linq Promenade being the most exciting.
Monday, April 25, 2016
New Wynn Paradise Park Lagoon Details
A few weeks ago I wrote a blog post about Wynn Paradise Park - the new proposed development by Wynn Resorts which will include a 1000 room hotel with a large man-made lagoon as a centerpiece attraction.
Today a press release was issued giving more details about the project. The lagoon will be constructed by a Miami based company called Crystal Lagoons.
"A 38-acre Crystal Lagoon will be the centerpiece of the development that will feature 260,000 square feet of premium meetings and convention space, a 1,000-room hotel tower, a small casino and extensive dining and nightlife. The elaborate water attraction will include both daytime and nighttime entertainment elements. At night, the space will transform with an elaborate fireworks display that is launched from the 120 ft. center island and surrounding areas. The expansion will be constructed on approximately 130 acres of real estate that currently houses the Wynn Golf Club. The project remains subject to the approval of Wynn's board.
The man-made lagoon with crystal-clear waters and white-sand beaches will be the size of more than 30 football fields and close to the size of almost 100 Olympic-size swimming pools. The new Crystal Lagoon will change the Las Vegas lifestyle with by making water sports readily available, such as stand-up paddle-boarding, wind-surfing, sailing, swimming and more."
Also notable from the press release was information touting the environmental sustainability of the project. The lagoon would use significantly less water than the current golf course.
It certainly looks like an impressive project, and if the sample image below is any indication it will be a great place to hang out. New outdoor spaces are a trend in Las Vegas with The Linq and The Park developments recently opening. Wynn Paradise Park would take the outdoor entertainment concept to the next level.
In my blog post a few weeks ago I was pretty skeptical about the project actually happening, but now that we have more details I think it would be a great expansion. If anyone can pull it off Steve Wynn is that guy.
Image: Crystal Lagoons
Today a press release was issued giving more details about the project. The lagoon will be constructed by a Miami based company called Crystal Lagoons.
"A 38-acre Crystal Lagoon will be the centerpiece of the development that will feature 260,000 square feet of premium meetings and convention space, a 1,000-room hotel tower, a small casino and extensive dining and nightlife. The elaborate water attraction will include both daytime and nighttime entertainment elements. At night, the space will transform with an elaborate fireworks display that is launched from the 120 ft. center island and surrounding areas. The expansion will be constructed on approximately 130 acres of real estate that currently houses the Wynn Golf Club. The project remains subject to the approval of Wynn's board.
The man-made lagoon with crystal-clear waters and white-sand beaches will be the size of more than 30 football fields and close to the size of almost 100 Olympic-size swimming pools. The new Crystal Lagoon will change the Las Vegas lifestyle with by making water sports readily available, such as stand-up paddle-boarding, wind-surfing, sailing, swimming and more."
Also notable from the press release was information touting the environmental sustainability of the project. The lagoon would use significantly less water than the current golf course.
It certainly looks like an impressive project, and if the sample image below is any indication it will be a great place to hang out. New outdoor spaces are a trend in Las Vegas with The Linq and The Park developments recently opening. Wynn Paradise Park would take the outdoor entertainment concept to the next level.
In my blog post a few weeks ago I was pretty skeptical about the project actually happening, but now that we have more details I think it would be a great expansion. If anyone can pull it off Steve Wynn is that guy.
Image: Crystal Lagoons
Thursday, April 07, 2016
Wynn Paradise Park Lagoon
Wynn Resorts held an investor day presentation yesterday. In an effort to share more about upcoming projects Wynn addressed investors for two and a half hours, and the company released a ton of renderings of the upcoming Wynn Palace Macau and Wynn Boston.
Many topics were discussed, but the item grabbing all the headlines is the plan to redevelop the golf course behind Wynn and Encore in Las Vegas. The new project could have a budget as high as $1.6 billion and would include a hotel, small casino, restaurants and retail.
The centerpiece of Wynn Paradise Park would be a large lagoon where guests could partake in a variety of water activities. The company would also plan to launch fireworks over the lagoon every night, just like at Disney.
Even with this model of what Wynn Paradise Park would look like, I'm still skeptical of this actually happening anytime soon. If it does get built I'm guessing the lagoon will be scaled down a bit. Something about building a huge lake in the middle of drought-ridden desert just doesn't feel right. I know what you're going to say - Wynn already did it a Bellagio. True, but this looks like a much bigger undertaking.
Either way, a project like this just underscores the continued expansion of non-gaming activities in Las Vegas. Even though the new hotel will have a casino, it's clear the focus will be on dining, shopping, and the lagoon attraction. Wynn Paradise Park would fit right in with the new outdoor spaces on the Strip - Caesars Entertainment's The Linq and MGM's The Park.
Each one of these features a main attraction to bring people in - the High Roller wheel at The Linq, T-Mobile Arena at The Park, and now the lagoon at Paradise Park.
Many topics were discussed, but the item grabbing all the headlines is the plan to redevelop the golf course behind Wynn and Encore in Las Vegas. The new project could have a budget as high as $1.6 billion and would include a hotel, small casino, restaurants and retail.
The centerpiece of Wynn Paradise Park would be a large lagoon where guests could partake in a variety of water activities. The company would also plan to launch fireworks over the lagoon every night, just like at Disney.
Even with this model of what Wynn Paradise Park would look like, I'm still skeptical of this actually happening anytime soon. If it does get built I'm guessing the lagoon will be scaled down a bit. Something about building a huge lake in the middle of drought-ridden desert just doesn't feel right. I know what you're going to say - Wynn already did it a Bellagio. True, but this looks like a much bigger undertaking.
Either way, a project like this just underscores the continued expansion of non-gaming activities in Las Vegas. Even though the new hotel will have a casino, it's clear the focus will be on dining, shopping, and the lagoon attraction. Wynn Paradise Park would fit right in with the new outdoor spaces on the Strip - Caesars Entertainment's The Linq and MGM's The Park.
Each one of these features a main attraction to bring people in - the High Roller wheel at The Linq, T-Mobile Arena at The Park, and now the lagoon at Paradise Park.
Wednesday, February 24, 2016
Wynn Considering Golf Course Development
Siegfried and Roy are the unlikely source of a rumor presented in a Norm Clarke article claiming that Wynn Resorts has plans to build a boutique hotel on their golf course.
The 1000 room hotel would have a 40 acre lake and convention space. It kind of sounds similar to the Wynn Palace development in Macau which will be opening later in 2016.
The development of Wynn's golf course has been a topic of discussion for a long time. In the mid-2000's it seemed like expansion onto the golf course was almost a certainty. The recession killed the project and Macau took over Wynn's attention.
Now with Macau struggling a bit the golf course idea seems to be in vogue again. I question if Wynn Resorts as a company really needs to do this though. Wynn already has the nicest hotel in Vegas which attracts plenty of high rollers. Is there even more room on the high end for a boutique hotel like this?
The 1000 room hotel would have a 40 acre lake and convention space. It kind of sounds similar to the Wynn Palace development in Macau which will be opening later in 2016.
The development of Wynn's golf course has been a topic of discussion for a long time. In the mid-2000's it seemed like expansion onto the golf course was almost a certainty. The recession killed the project and Macau took over Wynn's attention.
Now with Macau struggling a bit the golf course idea seems to be in vogue again. I question if Wynn Resorts as a company really needs to do this though. Wynn already has the nicest hotel in Vegas which attracts plenty of high rollers. Is there even more room on the high end for a boutique hotel like this?
Thursday, February 11, 2016
Wynn Boston Opening Late 2018
Wynn Resorts reported fourth quarter and full year 2015 earnings results earlier today. The results were down from last year due to continued weakness in the Macau market, and lower gaming in Las Vegas.
Despite the lower earnings Steve Wynn seemed fairly positive on the company's earnings conference call. He said Las Vegas results so far in 2016 have been strong, calling it "Apple pie shaped" - whatever that means.
Steve Wynn has been personally buying a good amount of Wynn Resorts stock lately. He gave a fairly extensive list of why he's buying the stock citing "latent" Las Vegas assets, namely a new shopping esplanade which will replace the old Ferarri showroom.
Wynn revealed the projected opening date for the Everett / Boston project. The resort will fully break ground in April 2016 and be completed 30 months from then - in late fall 2018.
Despite the lower earnings Steve Wynn seemed fairly positive on the company's earnings conference call. He said Las Vegas results so far in 2016 have been strong, calling it "Apple pie shaped" - whatever that means.
Steve Wynn has been personally buying a good amount of Wynn Resorts stock lately. He gave a fairly extensive list of why he's buying the stock citing "latent" Las Vegas assets, namely a new shopping esplanade which will replace the old Ferarri showroom.
Wynn revealed the projected opening date for the Everett / Boston project. The resort will fully break ground in April 2016 and be completed 30 months from then - in late fall 2018.
Wednesday, December 09, 2015
Steve Wynn Buys his own Stock
Steve Wynn has never lacked self confidence. It should be little surprise that he made a big bet on himself, recently purchasing a little over 1 million shares of Wynn Resorts stock valued at just north of $60 million.
The news of the purchase sent WYNN stock up 13% earlier today, increasing a little over $8 a share to finish just shy of $70 a share.
The one million shares Wynn recently purchased now represent 9% of his total stake in the company. He now directly or indirectly owns 11.07 million shares worth around $775 million.
While many see Wynn's purchase as a strong buy signal, I'm not so sure. While Las Vegas results are strong because of lower gaming odds, Wynn's results are more centered around Macau.
I think Macau is going to be a strong casino market for the long term, but there are a lot of question marks in the short term. A slew of new resort openings will likely expand the market in the long run, but could put pressure on existing resorts in 2016 and 2017.
The news of the purchase sent WYNN stock up 13% earlier today, increasing a little over $8 a share to finish just shy of $70 a share.
The one million shares Wynn recently purchased now represent 9% of his total stake in the company. He now directly or indirectly owns 11.07 million shares worth around $775 million.
While many see Wynn's purchase as a strong buy signal, I'm not so sure. While Las Vegas results are strong because of lower gaming odds, Wynn's results are more centered around Macau.
I think Macau is going to be a strong casino market for the long term, but there are a lot of question marks in the short term. A slew of new resort openings will likely expand the market in the long run, but could put pressure on existing resorts in 2016 and 2017.
Tuesday, December 01, 2015
November 2015 Las Vegas Stock Recap
With the calendar now showing December 2015, let's take a look back and see how Las Vegas stocks did in the month of November.
After a blazing hot October for Las Vegas stocks, they came back down to earth a little bit in November.
Caesars Entertainment was the only stock finishing up in November, inching up a little over 5% after soaring over 36% in October.
MGM Resorts International and Boyd Gaming were relatively flat in October, both declining slightly.
Wynn Resorts and Las Vegas Sands both were both down a little over 10% in November after both had a strong October. Some issues in Macau continue to weigh on these two operators.
Penn National was down almost 11% in November, after having the weakest performance of all the Las Vegas stocks in October. I'm guessing their master lease accounting issues could have hurt their stock price recently.
After a blazing hot October for Las Vegas stocks, they came back down to earth a little bit in November.
Caesars Entertainment was the only stock finishing up in November, inching up a little over 5% after soaring over 36% in October.
MGM Resorts International and Boyd Gaming were relatively flat in October, both declining slightly.
Wynn Resorts and Las Vegas Sands both were both down a little over 10% in November after both had a strong October. Some issues in Macau continue to weigh on these two operators.
Penn National was down almost 11% in November, after having the weakest performance of all the Las Vegas stocks in October. I'm guessing their master lease accounting issues could have hurt their stock price recently.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 8.05 | 8.47 | +5.22% |
| MGM | MGM | 23.19 | 22.74 | -1.94% |
| Boyd | BYD | 19.99 | 19.59 | -2% |
| Wynn | WYNN | 69.95 | 62.77 | -10.26% |
| Penn | PENN | 17.86 | 15.95 | -10.69% |
| Sands | LVS | 49.51 | 44.06 | -11% |
Thursday, November 19, 2015
Wynn Palace Opening Date now June 25, 2016
Wynn Palace, the new $4.1 billion dollar resort being constructed on the Cotai Strip in Macau has moved its opening date to June 25, 2016 pushed back from the original announced date of March 25, 2016.
Wynn Resorts issued a press release stating, "it was notified today by its general contractor, Leighton Holdings Limited, that the Wynn Palace project in the Cotai area of Macau will not be ready to open by the projected early completion date."
Recently Steve Wynn expressed frustration with the Macau government over uncertainty about the number of table games the company would be granted at Wynn Palace.
The Studio City development recently opened in Macau, but early reports indicate it hasn't done much to improve city-wide gaming results.
A three month delay in the opening of Wynn Palace probably won't mean much in the long term, but it's just another setback in what has been a very rough year for Wynn Resorts shareholders.
Wynn Resorts issued a press release stating, "it was notified today by its general contractor, Leighton Holdings Limited, that the Wynn Palace project in the Cotai area of Macau will not be ready to open by the projected early completion date."
Recently Steve Wynn expressed frustration with the Macau government over uncertainty about the number of table games the company would be granted at Wynn Palace.
The Studio City development recently opened in Macau, but early reports indicate it hasn't done much to improve city-wide gaming results.
A three month delay in the opening of Wynn Palace probably won't mean much in the long term, but it's just another setback in what has been a very rough year for Wynn Resorts shareholders.
Wednesday, November 11, 2015
Fontainebleau For Sale - Who Will Buy?
The Wall Street Journal reported today that Carl Icahn is looking to sell the Fontainebleau. The property will be listed by CBRE for $650 million.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
Sunday, November 01, 2015
October 2015 Las Vegas Stock Recap
With the calendar now showing November 2015, let's take a look back and see how Las Vegas stocks did in the month of October.
October turned out to be an amazing month for Las Vegas stock returns with every stock I track finishing green, and 5 out of the 6 finishing up by more than 20%.
Caesars Entertainment has been on a wild bankruptcy fueled roller coaster ride. After soaring an incredible 83.3% in August they came crashing back down to earth in September falling 38.32% only to turn it around again in October jumping up 36.67%.
Wynn Resorts and Las Vegas Sands both were up big in October after declining significantly in September. While Steve Wynn was angry at the Macau government during Wynn's earnings call, Sheldon Aldelson was nothing but respectful.
MGM Resorts International had a 25% gain in October highlighted by the news that they are creating a REIT called MGM Growth Properties.
Boyd Gaming rode the downtown Las Vegas success wave with their stock increasing almost 22% in October.
Penn National was "only" up 6.4% in October. I'm guessing their limited exposure to Las Vegas compared to the other stocks kept them form having the same explosive October results.
October turned out to be an amazing month for Las Vegas stock returns with every stock I track finishing green, and 5 out of the 6 finishing up by more than 20%.
Caesars Entertainment has been on a wild bankruptcy fueled roller coaster ride. After soaring an incredible 83.3% in August they came crashing back down to earth in September falling 38.32% only to turn it around again in October jumping up 36.67%.
Wynn Resorts and Las Vegas Sands both were up big in October after declining significantly in September. While Steve Wynn was angry at the Macau government during Wynn's earnings call, Sheldon Aldelson was nothing but respectful.
MGM Resorts International had a 25% gain in October highlighted by the news that they are creating a REIT called MGM Growth Properties.
Boyd Gaming rode the downtown Las Vegas success wave with their stock increasing almost 22% in October.
Penn National was "only" up 6.4% in October. I'm guessing their limited exposure to Las Vegas compared to the other stocks kept them form having the same explosive October results.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 5.89 | 8.05 | +36.67% |
| Wynn | WYNN | 53.12 | 69.95 | +31.68% |
| Sands | LVS | 37.95 | 49.51 | +30.46% |
| MGM | MGM | 18.45 | 23.19 | +25.69% |
| Boyd | BYD | 16.30 | 19.99 | +21.96% |
| Penn | PENN | 16.78 | 17.86 | +6.44% |
Monday, October 19, 2015
Macau Government Responds to Steve Wynn
Steve Wynn verbally lashed out at the Macau government on the Wynn Resorts third quarter earnings conference call last week. Steve is frustrated at the government's restriction on the number of table games a casino is allowed to have.
The Macau government not surprisingly didn't appreciate what Wynn had to say and fired back in kind, issuing a release stating in part:
"The Government says it will not lightly change its policies on the gaming industry and on labour – policies that have been widely supported by the Macao public.
The Government additionally noted that overseeing applications for gaming table allocation for the local casino sector and applications by companies for non-resident labour are executive legal powers of the Macao Government.
The Government also expressed regrets over an opinion from a casino operator – reported by news media outside Macao – relating to the city's gaming policy...
...In order to reiterate the Government's stance and its principles on the gaming policy issue, the Secretary met with representatives of the relevant gaming operator on 18 October."
The release showed a photo of Wynn Macau president Gamal Aziz meeting with government officials. The news of the government response sent WYNN stock price down by more than 6% earlier today.
I have a couple of questions about this whole incident. The first one - was this calculated by Steve Wynn, or did he just fly off the handle at the spur of the moment? The second question is whether the Macau government is serious about their hard line stance on table games.
I have a feeling this is some kind of dog and pony show designed to get Wynn Palace more table games while letting the government save face at the same time.
The Macau government not surprisingly didn't appreciate what Wynn had to say and fired back in kind, issuing a release stating in part:
"The Government says it will not lightly change its policies on the gaming industry and on labour – policies that have been widely supported by the Macao public.
The Government additionally noted that overseeing applications for gaming table allocation for the local casino sector and applications by companies for non-resident labour are executive legal powers of the Macao Government.
The Government also expressed regrets over an opinion from a casino operator – reported by news media outside Macao – relating to the city's gaming policy...
...In order to reiterate the Government's stance and its principles on the gaming policy issue, the Secretary met with representatives of the relevant gaming operator on 18 October."
The release showed a photo of Wynn Macau president Gamal Aziz meeting with government officials. The news of the government response sent WYNN stock price down by more than 6% earlier today.
I have a couple of questions about this whole incident. The first one - was this calculated by Steve Wynn, or did he just fly off the handle at the spur of the moment? The second question is whether the Macau government is serious about their hard line stance on table games.
I have a feeling this is some kind of dog and pony show designed to get Wynn Palace more table games while letting the government save face at the same time.
Saturday, October 17, 2015
Steve Wynn Makes Casino Adjustments
Steve Wynn spent most of Thursday's Wynn Resorts earnings call complaining about the government in Macau, but he also had some comments about Las Vegas.
You may remember last quarter when Steve Wynn talked about lowering craps odds. This time he provided a little more context to those kinds of adjustments he's making in the casino:
"We made a whole bunch of changes in the casino, both physically and procedurally. We've even fooled with the rules of the game. It's been 50 years since Las Vegas increased the price of gaming. We're way overdue considering the cost of running games and payroll.
We've adjusted our yield rate management approach. Maurice Wooden is here and he's very good at that in the whole American operation. We've made a host of adjustments. We were off in one month from $100 million in baccarat to 45. We were off $55 million in baccarat but we made almost the same amount of money because of all the adjustments we made.
And they go across the board throughout the hotel. And the way we price the hotel, the restaurants, and entertainment and gaming. We don't sit by and allow ourselves to become victims of anything of any aspect of our operation over which we have any control. So my long term view of our operations in America and in China is still positive. It's the short term that's bewildering."
You may remember last quarter when Steve Wynn talked about lowering craps odds. This time he provided a little more context to those kinds of adjustments he's making in the casino:
"We made a whole bunch of changes in the casino, both physically and procedurally. We've even fooled with the rules of the game. It's been 50 years since Las Vegas increased the price of gaming. We're way overdue considering the cost of running games and payroll.
We've adjusted our yield rate management approach. Maurice Wooden is here and he's very good at that in the whole American operation. We've made a host of adjustments. We were off in one month from $100 million in baccarat to 45. We were off $55 million in baccarat but we made almost the same amount of money because of all the adjustments we made.
And they go across the board throughout the hotel. And the way we price the hotel, the restaurants, and entertainment and gaming. We don't sit by and allow ourselves to become victims of anything of any aspect of our operation over which we have any control. So my long term view of our operations in America and in China is still positive. It's the short term that's bewildering."
Thursday, October 15, 2015
Steve Wynn Frustrated by Macau Tables
Today's Wynn Resorts earnings call was particularly interesting with a frustrated Steve Wynn on the line. The reason for Steve's frustration: the government in Macau.
Macanese gaming regulators set the number of tables a casino is allowed to have. With the government seeking to de-emphasize gaming in favor of non-gaming activities they have been stingy with the amount of tables they are willing to license.
The brand new Studio City development by Melco Crown recently was only granted half of the tables they had asked for, and that decision was made a mere two weeks before the property is set to open on October 27, 2015.
Wynn was not happy about this, as it doesn't bode well for his upcoming Wynn Palace opening March 25, 2016. Aside from the prospect of having less tables, not knowing how many they're going to have makes staffing decisions almost impossible.
When speaking about the government's policy of allowing less tables Steve shouted, "The damn casino is the cash register!" That prompted one analyst to thank him for being "refreshingly frank."
Steve Wynn unlike other CEO's likes to speak freely about the issues of the day without worrying about what people will think. One exception though is China.
Wynn usually chooses his words about the Chinese government very carefully without questioning them. He seems to be getting away from that strategy though and if today's call is any indication he's now willing to let the government know exactly what he thinks.
Macanese gaming regulators set the number of tables a casino is allowed to have. With the government seeking to de-emphasize gaming in favor of non-gaming activities they have been stingy with the amount of tables they are willing to license.
The brand new Studio City development by Melco Crown recently was only granted half of the tables they had asked for, and that decision was made a mere two weeks before the property is set to open on October 27, 2015.
Wynn was not happy about this, as it doesn't bode well for his upcoming Wynn Palace opening March 25, 2016. Aside from the prospect of having less tables, not knowing how many they're going to have makes staffing decisions almost impossible.
When speaking about the government's policy of allowing less tables Steve shouted, "The damn casino is the cash register!" That prompted one analyst to thank him for being "refreshingly frank."
Steve Wynn unlike other CEO's likes to speak freely about the issues of the day without worrying about what people will think. One exception though is China.
Wynn usually chooses his words about the Chinese government very carefully without questioning them. He seems to be getting away from that strategy though and if today's call is any indication he's now willing to let the government know exactly what he thinks.
Thursday, October 01, 2015
September 2015 Las Vegas Stock Recap
With the calendar now showing October 2015, let's take a look back and see how Las Vegas stocks did in the month of September.
Boyd Gaming was the only stock I track that was up in September. It's performance was likely buoyed by strong trends in downtown and the Las Vegas locals market.
Penn National was brought down by the rest of the sector, but since they don't have any international exposure they weren't down as much as the others.
MGM Resorts International was down almost ten percent. Their exciting upcoming projects including the Las Vegas Arena and The Park were overshadowed by their exposure to Macau, which was weak.
Las Vegas Sands and Wynn Resorts both declined significantly again in September. Along with general softness in Macau, reports of troubles in the high end junket market has sent these two stocks into a tailspin.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They came crashing back down to earth in September though falling 38.32%. The Caesars bankruptcy proceedings are very uncertain at this point, and it looks like investors are becoming less certain of a turnaround.
Boyd Gaming was the only stock I track that was up in September. It's performance was likely buoyed by strong trends in downtown and the Las Vegas locals market.
Penn National was brought down by the rest of the sector, but since they don't have any international exposure they weren't down as much as the others.
MGM Resorts International was down almost ten percent. Their exciting upcoming projects including the Las Vegas Arena and The Park were overshadowed by their exposure to Macau, which was weak.
Las Vegas Sands and Wynn Resorts both declined significantly again in September. Along with general softness in Macau, reports of troubles in the high end junket market has sent these two stocks into a tailspin.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They came crashing back down to earth in September though falling 38.32%. The Caesars bankruptcy proceedings are very uncertain at this point, and it looks like investors are becoming less certain of a turnaround.
| Company | Symbol | Start | End | Change |
| Boyd | BYD | 16.10 | 16.30 | +1.24% |
| Penn | PENN | 18.16 | 16.78 | -7.60% |
| MGM | MGM | 20.43 | 18.45 | -9.69% |
| Sands | LVS | 46.23 | 37.95 | -17.91% |
| Wynn | WYNN | 75.05 | 53.12 | -29.22% |
| Caesars | CZR | 9.55 | 5.89 | -38.32% |
Wednesday, September 09, 2015
Wynn hosting Democratic Presidential Debate
Wynn Las Vegas will be hosting the upcoming Democratic presidential debate on October 13, 2015.
Steve Wynn is a well known republican and has been critical of the current presidential administration. It has even been reported that Steve Wynn has been advising fellow Las Vegas hotel owner Donald Trump on his campaign.
Knowing this, the resort released the following statement:
Ours is a team of great diversity, representing every race, gender, religion, sexual orientation and political philosophy, to have the privilege of being intimately involved in the American political process by hosting this debate is a moment of great pride and excitement for all of us.
Despite his political leanings Steve Wynn likes money and publicity more than any political candidate, and hosting this debate is sure to give his resort much of both.
Steve Wynn is a well known republican and has been critical of the current presidential administration. It has even been reported that Steve Wynn has been advising fellow Las Vegas hotel owner Donald Trump on his campaign.
Knowing this, the resort released the following statement:
Ours is a team of great diversity, representing every race, gender, religion, sexual orientation and political philosophy, to have the privilege of being intimately involved in the American political process by hosting this debate is a moment of great pride and excitement for all of us.
Despite his political leanings Steve Wynn likes money and publicity more than any political candidate, and hosting this debate is sure to give his resort much of both.
Tuesday, September 01, 2015
August 2015 Las Vegas Stock Recap
With the calendar now showing September 2015, let's take a look back and see how Las Vegas stocks did in the month of August.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They had a strong earnings report combined with some positive bankruptcy news. Caesars stock is highly speculative given their possible bankruptcy, but those willing to gamble reaped the rewards in August.
MGM Resorts International also reported solid earnings, and their stock was up on the news that they are strongly considering a REIT conversion.
Penn National officially became the owners of the Tropicana, but their stock was down slightly in August. Fellow regional player Boyd Gaming was also down.
Las Vegas Sands and Wynn Resorts both declined significantly in August as they were affected by the Chinese stock market.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They had a strong earnings report combined with some positive bankruptcy news. Caesars stock is highly speculative given their possible bankruptcy, but those willing to gamble reaped the rewards in August.
MGM Resorts International also reported solid earnings, and their stock was up on the news that they are strongly considering a REIT conversion.
Penn National officially became the owners of the Tropicana, but their stock was down slightly in August. Fellow regional player Boyd Gaming was also down.
Las Vegas Sands and Wynn Resorts both declined significantly in August as they were affected by the Chinese stock market.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 5.21 | 9.55 | +83.30% |
| MGM | MGM | 19.62 | 20.43 | +4.13% |
| Penn | PENN | 19.08 | 18.16 | -4.82% |
| Boyd | BYD | 17.09 | 16.10 | -5.79% |
| Sands | LVS | 56.04 | 46.23 | -17.51% |
| Wynn | WYNN | 103.23 | 75.05 | -27.30% |
Monday, August 24, 2015
Las Vegas Stocks Fall in Global Selloff
In what has been dubbed on Twitter as Black Monday - stocks were down in a big way today as China fears caused a global selloff. The Dow, NASDAQ, and S&P 500 all fell by more than 3.5% on the day.
The big Las Vegas stocks were hard hit as they rely on the China economy in their Macau operations. Wynn Resorts fell almost 6.5%, MGM Resorts International was down 5% and Las Vegas Sands was off by 4%.
Even the regional gaming companies without China operations were affected by the selloff. Boyd Gaming was down by 3.3% and Penn National fell by just over 2.5%.
Caesars Entertainment bucked the trend however as they were up almost 12% on favorable bankruptcy news and good Atlantic City numbers. The fact that Caesars doesn't have any Macau operations also probably helped on this particular day.
The big Las Vegas stocks were hard hit as they rely on the China economy in their Macau operations. Wynn Resorts fell almost 6.5%, MGM Resorts International was down 5% and Las Vegas Sands was off by 4%.
Even the regional gaming companies without China operations were affected by the selloff. Boyd Gaming was down by 3.3% and Penn National fell by just over 2.5%.
Caesars Entertainment bucked the trend however as they were up almost 12% on favorable bankruptcy news and good Atlantic City numbers. The fact that Caesars doesn't have any Macau operations also probably helped on this particular day.
| Company | Symbol | Open | Close | Change |
| Caesars | CZR | 8.02 | 8.98 | +11.97% |
| Penn | PENN | 17.69 | 17.20 | -2.55% |
| Boyd | BYD | 16.03 | 15.50 | -3.31% |
| Sands | LVS | 47.99 | 46.05 | -4.04% |
| MGM | MGM | 20.59 | 19.54 | -5.10% |
| Wynn | WYNN | 81.77 | 76.48 | -6.47%% |
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