Dive Brief:
- Wynn Resorts reported $1.69 billion in operating revenues in the third quarter of 2024, up approximately 1.3% from the prior-year quarter, according to a Monday earnings report. In Las Vegas, where the company operates Wynn Las Vegas and Encore, operating revenues decreased 1.9% year over year in Q3, according to the report.
- Despite the decline, CEO Craig Billings said Las Vegas experienced solid non-gaming performance in the quarter, including 5% year-over-year growth in hotel revenue.
- During a Monday earnings call, Billings noted that he’s optimistic about future growth in the Nevada market, driven by strong demand from high-end consumers.
Dive Insight:
In Las Vegas in Q3, “demand remained healthy, and on a normalized basis, revenue was up about 1% and EBITDA was essentially flat year over year on very tough comps,” Billings said on the call.
Wynn competitors Caesars Entertainment and MGM Resorts International also reported strong hotel performance in Las Vegas in Q3, with both companies noting that group travel to the market was up in the quarter.
In the second quarter of this year, Las Vegas achieved 100% or more in overall group and business performance compared to the same time in 2023, according to research by Knowland and Amadeus Hospitality.
Wynn saw similar demand, with Wynn Las Vegas President Brian Gullbrants noting on the call that “the outlook for group business remains quite healthy for the remainder of the year, and we're pacing toward a record year in room nights for this year at fairly strong ADRs.”
Demand in Las Vegas has “remained healthy” into the fourth quarter, particularly from high-end consumers, according to Billings.
“Looking ahead, our luxury positioning and unique programming continue to appeal to the market's most affluent, and therefore most resilient customers, positioning us well to continue our leadership on the Strip as we move into 2025,” Billings said.
In May, McKinsey & Co. predicted that, despite uncertain economic conditions, demand for luxury hospitality will grow faster than any other travel segment in the years ahead.
