Wynn Pauses Encore Remodel Amid Tariff Uncertainty

Wynn Resorts CEO Craig Billings announced the company is pausing its planned remodel of the Encore tower. The decision to halt the $375 million budget for major upgrades and maintenance projects is due to uncertainty over tariffs.

Billings said the cost of the Encore upgrade would be in the high $200 million range. The renovations are being paused until the company has a better understanding of how potential tariffs could affect expenses. 

“The current tariff rates have driven us to delay about $375 million of CapEx projects, including the Encore Tower remodel," Billings said in his opening statement. "Once tariff rates have settled, we will thoroughly review and resource the most severely affected items. While we're staying nimble, the pace of change at the moment is just too significant to commit to revised timing on that CapEx.”

Guests at Wynn shouldn’t notice many changes when they visit the casino, which just celebrated its 20th anniversary. Billings also said the company expects the direct impact of tariffs on daily operations to be “low and entirely manageable.”

Wynn Continues Making Small Updates in Las Vegas

The Encore tower upgrade was the only major capital project Wynn had planned for this year. There are a few smaller updates at the property that are moving forward.

Pisces Bar and Seafare is set to open this weekend as scheduled. Wynn’s new members-only club, Zero Bond, is expected to open later this year. 

During the call, there was no mention of the Golf Course Clubhouse & Grill that appears in the company’s earnings presentation. There’s no specific timeline on when this restaurant will open.

Wynn used to have a restaurant named Country Club just off the 18th hole of the golf course, but that closed in 2018.

Wynn’s Las Vegas Earnings Dip as Expected

Earlier this year, several Las Vegas casino operators warned that first-quarter earnings could dip since the city didn’t host the Super Bowl in February, as it did the year before. That prediction held true for Wynn.

In Las Vegas, Wynn Resorts generated $11.3 million less in the first quarter this year compared to the same period last year. Despite the drop in revenue, Billings said Las Vegas would have been up 4% for the quarter if revenue from last year’s Big Game were excluded.

He added that business through April “feels good,” with revenue per room slightly higher than last year and slot handle improving, thanks in part to recent high-limit room upgrades.

While demand remains strong, booking windows are getting shorter. Customers are hesitant to make long-term vacation plans due to uncertainty about the economy as the year progresses.

As Wynn Pauses, MGM Expands and Other Upgrades Move Forward

Wynn’s pause in capital expenditures comes after several casino operators reported earnings. Caesars, MGM Resorts, Red Rock Resorts (parent company of Station Casinos), and Boyd Gaming all expressed optimism about the Las Vegas market. Each company is moving forward with planned upgrades without interruption, while continuing to monitor the tariff situation.

Earlier this year, numerous Las Vegas casino operators announced a slew of upgrades and renovations. They’re all moving forward as scheduled – for now. 

MGM Resorts is continuing its MGM Grand room renovation project this year. During its first-quarter earnings call, the company said it would renovate the rooms at Aria next year and Cosmopolitan in 2027. 

Station Casinos is moving forward with its previously announced expansion of Durango Casino, room renovations at Green Valley Ranch and casino floor upgrades at Sunset Station in Henderson.

Boyd Gaming is full speed ahead at the Orleans and its massive casino floor upgrade at Suncoast. 

While Caesars is done upgrading hotel rooms for the time being, it’s planning to build a dayclub at Caesars Palace.

(Image: Barbara Kraft / courtesy of Wynn Resorts)