Opening Of Wynn Megaresort In UAE Pushed Back To September 2027
Company cites US-Iran conflict among factors for delay, with cost of Wynn Al Marjan Island increasing by $600 million
The Wynn Resorts megaresort in the United Arab Emirates will be opening — but six months late and at an additional $600 million cost.
The resort — Wynn Al Marjan Island, in the emirate of Ras Al Khaimah — had been set to open in the spring of 2027 at a cost of $5.1 billion. During the company’s second quarter earnings call Tuesday, however, CEO Craig Billings said the timeline has been moved back to September and the cost has jumped to $5.7 billion.
One of the main causes for the delay is the ongoing conflict between the United States and Iran.
“As development of Wynn Al Marjan Island progresses, regional conflict-related disruptions initially impacted global supply chains and continued to impact the shifting insurance markets,” Billings said on the call. “This has required certain materials and equipment to be resourced, rerouted, or expedited to ensure the project’s construction timeline.”
As for the cost, Billings laid about half the blame on the war.
“With respect to budget, we’re increasing the total project by approximately $600 million. Of that, half is directly attributed to disruptions from the regional conflict — material cost increases, shipping cost increases, and the pre-opening and capitalized interest costs associated with the extended construction timeline,” he said. “The remaining portion reflects remeasurement, trade coordination, and other costs you expect on a project of this scale and duration, independent of anything happening in the region.”
Analysts OK with adjustments
Despite the delay and the added costs, analysts at Truist were bullish on the news.
“[W]e won't obsess over timing for property opening but think investors appreciate having a more concrete deadline in place,” wrote Barry Jonas and Patrick Keough.
Analysts at Deutsche Bank echoed the sentiment.
“We believe the market will react well to having an official opening date for the UAE and will start to anticipate the opening at some point,” Deutsche Bank’s Steven Pizzella said.
Despite the delay, the second quarter was good for Wynn.
The company posted adjusted property earnings of about $568 million, ahead of Wall Street estimates. Las Vegas delivered $215 million despite unusually low table hold, with casino revenue up 5% and revenue per room up 3%. Billings said May was especially strong and that the coming F1 race weekend is pacing ahead of last year. Encore Boston Harbor generated $56 million.
Wynn also plans to break ground within weeks on a theater and event center at Wynn Palace in Macau, due in 2028, followed by a 432-suite hotel called the Enclave in 2029.
Jeff Edelstein is a longtime columnist, reporter, radio host, and fantasy sports aficionado, not necessarily in that order. He lives in New Jersey with his family.
