Wynn Resorts Has Plans For 11 Acres Around Encore Boston Harbor, But Effort Could Take Awhile
Posted on: August 7, 2019, 10:41h.
Last updated on: August 7, 2019, 11:53h.
Wynn Resorts owns 11 acres of prime real estate around the recently opened Encore Boston Harbor. While the company has plans for that land, it could take some time for that vision to be realized.
Encore Boston Harbor, the company’s first US integrated resort outside of Las Vegas, opened on June 23. Wynn has been active in gobbling up land around the new casino. On the company’s second-quarter earnings conference call yesterday, analysts inquired about the gaming operator’s intent for its acres near the venue in Everett, Mass.
So the planning and permitting process does take quite a long time in Massachusetts,” said Wynn CEO Matt Maddox on the call. “And we’re not in with any formal programs right now. We are talking to various potential partners, because I think joint ventures can really work on that 11 acres for additional hotels that might be not quite the Wynn standard and other entertainment offerings.”
Encore Boston Harbor was open for just eight days of the second quarter, but the new casino kicked in $18.8 million in revenue and $100,000 in earnings before interest, tax, depreciation, and amortization (EBITDA) for Wynn during the April through June period.
Luring High-Rollers To Beantown
The $2.6 billion Massachusetts casino is positioned as the most elite gaming property in New England, meaning Wynn’s ability to lure VIPs to the property is a point of emphasis for some of the Wall Street analysts covering the company.
Goldman Sachs analyst Stephen Grambling asked Maddox about a time frame for the company tapping its database of high-end gamblers and luring those patrons to Boston. While the Wynn CEO appears pleased with the ramp-up effort at Encore Boston Harbor, he said it could be a few more weeks before the company starts driving high rollers to New England.
“But we’d always said let’s give at least 90 days before we start hitting our full database at Wynn Las Vegas to offering people offers there, and directly marketing to our higher end customers,” said Maddox. “So the idea of that would be sometime in the fall.”
Grambling put a “neutral” rating on Wynn with a price target of about $139 in April.
As for those 11 acres owned by Wynn, ideas include a non-gaming hotel, an entertainment area, and an arts district.
“We’ve been approached by people that would like to think about putting an arena there for various events,” said Maddox. “We’ve been approached by people that like to do the outdoor districts that have lots of various entertainment aspects, but on a more boutique level. So we were evaluating various proposals. We’re not in a rush.”
Entertaining ideas for non-gaming attractions near one of its casinos is something Wynn is already doing. Earlier this year, the company revealed plans for the $2 billion Crystal Pavilion, which will be adjacent to the Wynn Palace in Macau.
Expected to be completed in 2024, Crystal Pavilion will include 1,300 guestrooms, art museums, and an immersive technology theater, among other attractions, but it won’t feature a casino.
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