Wynn Resorts, Limited, a Nevada corporation, was formed in June 2002 and completed
an initial public offering of its common stock on October 25, 2002. The Company
is a leading developer, owner and operator of destination casino resorts. We
own and operate two destination casino resorts: “Wynn Las Vegas,”
on the “Strip” in Las Vegas, Nevada, and “Wynn Macau,”
located in the Macau Special Administrative Region of the People’s Republic
of China (“Macau”). We are also currently constructing “Encore
Suites at Wynn Las Vegas” or “Encore” and Wynn Diamond Suites
at Wynn Macau. We review our results based on the following segments: Wynn Las
Vegas, which includes Encore, and Wynn Macau.
Wynn Las Vegas and Wynn Macau were designed and built to attract premium gaming
customers. Wynn Las Vegas offers luxurious rooms and suites, high-limit tables,
VIP gaming salons, exquisite fine dining, premium retail shopping, distinctive
entertainment and an 18-hole golf course. The Tower Suites at Wynn Las Vegas
is the only casino resort in the world to have been awarded both the Mobil five
star and AAA five diamond distinctions and four of Wynn Las Vegas’ restaurants
have been recognized by AAA (including our AAA rated, 5-Diamond French restaurant,
Alex) and Michelin, the esteemed European restaurant rating system. Three of
our restaurants were awarded Michelin stars. Two Michelin stars were awarded
to Alex and one Michelin star was awarded to each of Wing Lei and Daniel Boulud
Brasserie. Overall our resort and country club received five red pavilions,
the highest Michelin accommodations rating. Our hotel and gaming offerings are
designed to meet the expectations of high-budget, premium customers, including
our Asian customers. We expect our Asian customer segment to become even more
significant with Wynn Macau, and intend to capitalize on cross-marketing opportunities
between Wynn Las Vegas and Wynn Macau.
Capitalize on our Opportunity in Macau. The government of Macau has made a
major commitment to ensure that Macau becomes a tourist destination of choice
in Asia by encouraging significant investment in new and expanded casino entertainment
facilities to enhance its reputation as a casino resort destination and to attract
additional tourists and lengthen stays. The Chinese government continues to
gradually relax its travel and currency restrictions, allowing mainland Chinese
from certain urban centers and economically developed areas to visit Macau without
joining a tour group and increasing the amount of currency that Chinese citizens
are permitted to bring into Macau. We expect tourism in Macau to continue to
grow as the Chinese government continues to liberalize restrictions on travel
and currency movements.
Gaming customers from Hong Kong, southeast China, Taiwan and other locations
in Asia can reach Macau in a relatively short period of time, and visitors from
more distant locations in Asia can take advantage of short travel times by air
to Macau or to Hong Kong. The relatively easy access from major population centers
positions Macau as a popular gaming destination in Asia.
We utilized our brand and significant experience in Las Vegas in providing
a Steve Wynn-designed property on our 16-acre site located in Macau’s
inner harbor area across from the Hotel Lisboa, Macau’s best-known casino.
Our concession provides us with the ability to develop an unlimited number of
casino resorts with Macau government approval, which adds significant value
to our Macau opportunity.
Las Vegas Real Estate Assets. Wynn Las Vegas is located on approximately 55
acres on the famed Las Vegas Strip. Our property is located between the approximately
3.2 million square feet of convention space operated by the Las Vegas Convention
and Visitors Authority and the Palazzo and Venetian Casino Resort and their
approximately 1.8 million square foot Sands Expo Center; diagonally across from
the Mirage and the Treasure Island Hotel and Casino; directly across from the
Fashion Show Mall and Trump Towers; and across from Echelon and The Plaza, which
are currently under development. Encore is being constructed on 20 acres of
land adjacent to Wynn Las Vegas. We also have an approximately 142-acre parcel
of land behind Wynn Las Vegas, which is currently used as a golf course.
Market and Competition
Many properties on the Las Vegas Strip have opened over the past ten years,
including the Bellagio, Mandalay Bay Resort & Casino, Paris Las Vegas, Planet
Hollywood Resort & Casino (formerly known as the Aladdin), The Venetian
and The Palazzo. In addition, a number of existing properties on the Las Vegas
Strip embarked on expansions during this period, including Bellagio, Luxor Hotel
and Casino, Mandalay Bay Resort & Casino and Caesars Palace. As a result,
the casino/hotel industry in Las Vegas is highly competitive. Wynn Las Vegas
is located on the Las Vegas Strip and competes with these and other high-quality
resorts and hotel casinos, those in downtown Las Vegas, as well as a large number
of hotels in and near Las Vegas.
Many competing properties, such as the Bellagio, Caesars Palace, Luxor Hotel
and Casino, Mandalay Bay Resort & Casino, The Mirage, New York-New York
Hotel and Casino, Paris Las Vegas, Treasure Island at The Mirage, The Venetian,
The Palazzo and others, have themes and attractions which draw a significant
number of visitors and directly compete with our operations. We seek to differentiate
Wynn Las Vegas from other major Las Vegas resorts by concentrating on our fundamental
elements of design, atmosphere, personal service and luxury.
Wynn Las Vegas also competes, to some extent, with other hotel/casino facilities
in Nevada and Atlantic City, riverboat gaming facilities in other states, casino
facilities on Native American lands and elsewhere in the world, state lotteries,
and other forms of gaming. The continued proliferation of Native American gaming
in California could have a negative impact on our operations. In particular,
the legalization of casino gaming in or near metropolitan areas from which we
attract customers could have a negative effect on our business. In addition,
new or renovated casinos in Macau or elsewhere in Asia could draw Asian gaming
customers, including high-rollers, away from Las Vegas.
Macau’s gaming market is primarily dependent on tourists, less than one-half
of visitors traveling to Macau stayed overnight in hotels and guestrooms and,
for those who stayed overnight in hotels and guestrooms, the average length
of stay was only one to two nights. We expect the average length of stay to
increase as a result of new, upscale hotel resort accommodations in Macau, including
Wynn Macau.
Gaming customers traveling to Macau typically come from nearby destinations
in Asia including Hong Kong, mainland China, Taiwan, South Korea and Japan.
According to the Macau Statistics and Census Service Monthly Bulletin of Statistics,
approximately 91% of the tourists who visited Macau in 2007 came from mainland
China, Hong Kong and Taiwan. Macau completed construction of an international
airport in 1995, which accommodates large commercial aircraft and provides direct
air service to major cities in Asia, including Beijing, Shanghai, Taipei, Manila,
Singapore and Bangkok.
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