Wynn Resorts Ltd. is currently considering building a lake resort expansion involving a whopping 1,000 rooms and 250,000 square feet of meeting space at its Las Vegas Strip property sitting on the middle of a 38-acre lagoon which would host paddle boarding, parasailing, and water skiing during the day, and fireworks shows held every evening.
Wynn Resorts CEO and chairman Steve Wynn said on April 6 (Wednesday) during a presentation to investors in Las Vegas that they will convert their Wynn Golf Club into the resort, which shall feature a mile-long boardwalk and a lake. The resort is, for the time being, called Paradise Park.
Steve Wynn, who is still working on the plans and details to seek the approval of his company's board come September, said, "It would be just like Disney. This is the most fun project in my 45 years. Somebody take the other side, tell me what's wrong with this idea? We've all drunk the Kool-Aid."
The casino mogul also firmly stressed in his presentation the importance of non-gambling business in Las Vegas, which now apparently tends to bring in more revenue than the gambling operations.
Because of this announcement, at 9:50am New York on April 7 (Thursday), the shares of Wynn rose 10% to $98.90 - their highest intraday price ever since August 2015. Before Wednesday ended, the stock had gained 29% for this year.
David Katz, the Telsey Advisory Group analyst, wrote in a note last Thursday, saying, "The golf course behind the Wynn and Encore casinos earns about $5 million n earnings before interest, taxes, depreciation and amortization, while Paradise Park could bring in $300 million to $400 million. We view the re-development as a shrewd move on the part of Wynn to unlock
further value from the land."
If approved, Wynn said that the construction could start in the fall season.