Macau Gives Wynn Resorts the Go-Ahead on Cotai
Consider Wynn Resorts' (NAS: WYNN) Cotai resort signed, sealed, and almost delivered after the company announced it was given a concession on Cotai. Since Wynn has already started prep work on the development, this isn't a huge surprise, but you never know how fast Macau's government is going to act on decisions like this.
A pretty penny
The land concession will cost Wynn $193 million, half of which will be paid in a down payment, the other half in eight semiannual installments. Rent on the property will also be $768,000, a drop in the bucket for a Macau casino.
The property Wynn will be building on sits directly across from Melco Crown's (NAS: MPEL) City of Dreams and near Las Vegas Sands' (NYS: LVS) Sands Cotai Central. MGM Resorts' (NYS: MGM) proposed Cotai property sits in the middle of all three, so the area will be a cluster of high-powered casinos.
Details are sparse
While Steve Wynn has been espousing his usual gushing praise for his properties, we haven't seen exactly what the development will look like.
We know that there will be around 1,500 hotel rooms, 500 table games, a theater, and the usual restaurants and shopping.
What's nice for Wynn is that the area will be fully operational by the time its casino opens up. It won't be breaking new ground like The Venetian Macau did, and it will have a plethora of hotel rooms to feed its casinos.
The next growth step
Wynn is one of the more conservative casino operators and keeps its resorts as exclusive as its clients. This new resort on Cotai will continue that theme and by all indications should be another crown jewel for Steve Wynn. It looks like the resort won't be completed until around 2015, but it should be a major draw and an enormously profitable casino when it finally opens.
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