The company wants to create a “just like Disney” place between its two casinos that would include a lake for water skiing and paddle-boarding. Its Tom Fazio-designed Wynn Golf Club would be converted into the property.
Wynn Resorts Ltd. is planning to build a lake resort behind its two Las Vegas casinos, creating a place for water-skiing and paddle-boarding just off the desert city’s famous Strip, Bloomberg.com reported.
The Las Vegas-based company will convert its Tom Fazio-designed, 130-acre Wynn Golf Club into the resort, which would feature a 38-acre lake/lagoon and a mile-long boardwalk, Steve Wynn, the company’s founder, chairman and CEO, said in a presentation to investors in Las Vegas. The resort, tentatively called Wynn Paradise Park, would offer ice cream and a fireworks show every night, Bloomberg.com reported.
The park could open in 2020 if construction begins in 2017, it was reported.
The former Desert Inn golf course, which Wynn bought in 2000, could be the centerpiece of “an idyllic beach paradise surrounded by white sand beaches,” Wynn said.
The property could be “just like Disney,” said Wynn, who said he was still working on the details and plans to seek approval from his company’s board in September, Bloomberg.com reported.
The announcement prompted shares of Wynn to rise 10 percent the next morning, their highest intraday price since August 2015., Bloomberg.com reported.
The proposed project is the first major construction Wynn has undertaken in Las Vegas since Encore Las Vegas opened there in 2008, Bloomberg.com reported. The new resort, which would feature 1,000 hotel rooms and 250,000 square feet of meeting space, could cost as much as $1.6 billion, Wynn said.
“This is the most fun project in my 45 years,” Wynn told investors. “Somebody take the other side, tell me what’s wrong with this idea? We’ve all drunk the Kool-Aid.”
The golf course behind the Wynn and Encore casinos earns about $5 million in earnings before interest, taxes, depreciation and amortization (EBITDA), and Paradise Park could bring in $300 million to $400 million, Telsey Advisory Group analyst David Katz told Bloomberg.com.
“We view the re-development as a shrewd move on the part of Wynn to unlock further value from the land,” said Katz, who raised his rating on the stock to “outperform.”
Wynn also used the event to reveal details of another property that is being planned for the Boston suburb of Everett, Mass., Bloomberg.com reported. The roughly $2 billion Boston-area resort could generate as much as $400 million in EBITDA, according to a slide presentation that accompanied the event.