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RAS AL KHAIMAH - Wynn Resorts, Limited (NASDAQ:WYNN) has announced steady progress on the construction of its latest luxury resort, Wynn Al Marjan Island, located in Ras Al Khaimah, United Arab Emirates. The resort, which is a short drive from Dubai International Airport, is anticipated to open in the first quarter of 2027.
As of today, the resort's construction is over halfway complete, with 55% of the structural concrete finished. The main resort tower has reached the 26th floor, and the walls have been constructed up to the 29th floor. The construction team aims to complete one floor each week, with a goal of topping off the structure by December 2025. The resort has seen significant progress in the past 100 days, growing by 44 meters.
The project is under the supervision of Wynn Design and Development, which boasts more than 90 architects, designers, and creative professionals. The resort will feature 1,542 rooms and suites, with the structure for 1,121 guest rooms already completed, representing 73% of the total. Fit-out efforts are underway in approximately 820 rooms, including the installation of walls, floors, ceilings, and essential services like mechanical, electrical, and plumbing. Escalator and elevator installations have also commenced this month.
Wynn Al Marjan Island is set to redefine luxury in the region with its diverse offerings, including twenty-two restaurants, lounges, and bars, a nightclub with a lineup of world-renowned DJs, and a beach club located on a white sand beach along the Arabian Gulf. A sprawling poolscape, a 15,000-square-meter shopping promenade with top luxury boutiques, a five-star spa, salon, and a 7,500-square-meter meetings and events center are also part of the resort's attractions.
This development is a collaborative effort between Wynn Resorts, Marjan, and RAK Hospitality Holding and is expected to be the first integrated gaming resort in the Middle East North Africa region.
Wynn Resorts is a notable player in the hospitality industry, operating several luxury resorts and casinos across the globe, including properties in Las Vegas, Boston, Macau, and Cotai. The information provided in this article is based on a press release statement from Wynn Resorts, Limited.
In other recent news, Wynn Resorts has seen a series of adjustments in stock targets by financial firms following the announcement of its third-quarter earnings. The company's earnings were lower than anticipated, with consolidated property EBITDA reaching $527.7 million, falling short of both Mizuho (NYSE:MFG) Securities and the Street's expectations. A weaker performance in Macau was the primary contributor to this shortfall, leading to Mizuho lowering its price target for Wynn Resorts from $125 to $118, while maintaining an Outperform rating.
Despite these challenges, Wynn Resorts reported a modest increase in revenue and profitability. Key developments included a 1% rise in normalized revenue in Las Vegas, a 5% increase in hotel revenue in the same city, and a 4% growth in slot handle. Encore Boston's EBITDAR rose by 4% year-over-year, reaching $63 million, while Macau operations saw a 3% increase in EBITDA, with a 6% rise in operating revenue.
In response to these developments, Stifel raised Wynn Resorts' stock price target to $125 from $103, maintaining a Buy rating. The firm believes that the company's shares are trading at a significantly discounted multiple and expects the valuation of Wynn's Macau assets to rise as the market recovers. On the other hand, Citi maintained a Buy rating but adjusted the price target to $116 from $121, citing a modest shortfall in the third-quarter 2024 results.
InvestingPro Insights
As Wynn Resorts (NASDAQ:WYNN) makes significant strides in the construction of its Wynn Al Marjan Island resort in the UAE, investors may find additional context from recent financial data and analyst insights.
According to InvestingPro data, Wynn Resorts boasts a market capitalization of $9.89 billion, reflecting its substantial presence in the luxury hospitality sector. The company's revenue for the last twelve months as of Q3 2023 stood at $7.13 billion, with an impressive year-over-year growth of 25.16%. This growth aligns well with the company's expansion efforts, including the ambitious UAE project.
Wynn's gross profit margin of 69.09% underscores its ability to maintain profitability in its operations. An InvestingPro Tip highlights the company's "impressive gross profit margins," which bodes well for the potential success of new ventures like the Wynn Al Marjan Island resort.
Despite the positive outlook on the new resort, investors should note that another InvestingPro Tip indicates that "6 analysts have revised their earnings downwards for the upcoming period." This caution may reflect the significant capital expenditure required for large-scale projects like the one in Ras Al Khaimah.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Wynn Resorts, providing a deeper understanding of the company's financial health and market position.
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