The news broke a few days back that Wynn Resorts is considering investing close to $1.5 Billion into remodelling their golf course area into something dubbed “Wynn Paradise Park”. The proposed project includes a 38 acre lagoon and a 1,000 expansion of the current hotel room offerings at the property. While the renderings look beautiful and we’re all for expansion, the first question that popped in our heads is why invest that much money into this project.
A Look at The Proposed Wynn Paradise Park
At a company investment conference this past week, Wynn said:
We have a chance to reinvent Las Vegas and make the whole venue an entertainment attraction … an idyllic beach paradise surrounded by white sand beaches. People come to Las Vegas from all over the world to live large and have a good time and we can dish up an irresistible entertainment attraction.
Clearly the Executive Team at Wynn Resorts has a strategic mission with this expansion, and the staff here at BestUSCasinos.org is thinking this could be one of a few different things. The most likely reason for the project is that they want to expand their product offering in tandem with the opening of Resorts World (supposedly in 2018) who will by all accounts become their biggest market competitor.
Although the Wynn Paradise Park project would not be ready until 2020, it still would be a smart strategic decision to continue developing the product in order to stay with if not ahead of the competition. In the Vegas hotel market, it’s almost essential to improve, reinvent your product or fade away as the fierce competition breeds innovation unseen in most business markets.
Aside from the incoming Resorts World project, another possible reason that Wynn Resorts could be considering doing this is to cater to a different market segment, mainly families. Historically, Wynn has been very clear (in our opinion) of the type of visitors that he’s targeting, being mainly those who are willing to pay the $250+ per night to stay in the luxurious hotels.
While there is no word on what this new 1,000 room offering would be aimed at, it’s plausible that this could be geared more towards non-gambling oriented visitors who want a resort like experience at an upscale property. This would be inline with the growing trend of non-gaming revenue that’s been shifting steadily over the last decade towards more entertainment spending.
As the hotels have started to dedicate more resources into monetization of non-casino assets, we suspect they are slowly figuring out the right product mix to maximize revenue from every angle ensuring maximum profitability for their operations. It’s likely that this trend of investment in feature driven expansions to hotels will continue for the foreseeable future to keep up with growing consumer changes and demands in the Las Vegas marketplace.