Dive Brief:
- Wynn Resorts saw its operating revenue grow to $1.84 billion in the fourth quarter of 2023, increasing 84% year over year, the company reported Wednesday. The company’s adjusted property EBITDAR increased 223% during the same period to an all-time high.
- In Las Vegas, where Wynn operates Wynn Las Vegas and Encore, the company’s operating revenue reached $696.8 million in Q4, increasing 19% year over year, and adjusted property EBITDAR grew 23% year over year in Q4, the report detailed.
- During a Wednesday earnings call with analysts, Wynn CEO Craig Billings attributed the company’s strong quarterly results to increased operating revenues in Las Vegas, a result of Formula 1’s inaugural Las Vegas Grand Prix race in November. Billings said he expects a robust events calendar and heightened group demand in the market to drive continued growth into 2024.
Dive Insight:
Wynn Resorts’ adjusted property EBITDAR reached an all-time high of $630.4 million in the fourth quarter of 2023, a continuation of the “strong momentum” the company built throughout the year, Billings said in the report.
In Las Vegas specifically, Wynn also posted record adjusted property EBITDAR of $270.8 million. Formula 1 was “clearly a contributor” to the performance growth, Billings said during the earnings call.
While Wynn has not disclosed the financial impact on its resorts for the race weekend, a company spokesperson previously told Hotel Dive Wynn was “proud to partner with F1, a number of teams, manufacturers and drivers on numerous events during the week, and the reception from our patrons was exceptional.”
Leading up to the Grand Prix, Wynn Las Vegas President Brian Gullbrants forecasted the hotel would exceed its all-time hotel revenue record by about 50% for the three-day weekend surrounding the event.
Wynn’s Las Vegas competitors MGM Resorts International and Caesars Entertainment similarly predicted fourth-quarter performance growth from the race.
Moving into the new year, Billings said he anticipates continued growth in Las Vegas, particularly from Super Bowl LVIII this month. “We expect record hotel revenue over SuperBowl [weekend],” he said during the call.
During the call, Gullbrants added that heightened group demand will bolster performance growth in the market throughout the first quarter of the year and beyond.
“We're really encouraged by the forward group booking trends that we're seeing,” he said. “The outlook for group business is super strong. [20]24 is pacing towards a record [for] group room nights.”
Beyond the Super Bowl, Billings believes a robust events calendar in Las Vegas will drive growth throughout the year. He pointed to concerts at MSG Entertainment’s The Sphere venue, which opened in the latter half of 2023.
The impact of The Sphere has “been pretty amazing,” according to Billings. He said the venue “probably doesn't affect” Wynn’s rates but that guests are requesting to reside on the side of the resort with views of the venue. And on the weekends that U2 plays, Billings said, Wynn sees an “uptick of very high-quality occupancies.”
When asked if luxury competitor Fontainebleau Las Vegas, which opened in December with a bang, has impacted Wynn’s performance at all, Billings said he hasn’t seen an impact.
