US Tariff Concerns Lead Wynn to Postpone Encore Remodel in Las Vegas

Wynn Resorts has postponed capital expenditures in Las Vegas worth US$375 million, including the Encore Tower remodel estimated in the upper-US$200 million range. CEO Craig Billions announced the deferral during Tuesday’s Q1 earning call, citing unpredictable US tariff impacts on construction materials. He noted that operational tariff effects on foot and beverage remain “low and entirely manageable” while capital projects face heightened cost uncertainty.

“The current tariff rates have driven us to delay $375 million of cap-ex projects, including the Encore Tower remodel,” Billing told investors, according to local reports. “Once tariff rates have settled, we will thoroughly re-spec and re-source the most severely affected items.”

Material Acquisition Complexity Delays Upgrades

Wynn Resorts CFO Julie Cameron Doe clarified that the project’s deferral is rescheduling rather than cancellation, underscoring intricate material re-specification challenges. “When we re-spec pieces, particularly furniture and fixtures, it’s not like flipping through a catalog,” Billings emphasized. He noted that single-item revisions could delay timelines by “x number of months.” Affected projects include upgrades to Encore’s high-limit gaming area, a new Golf Course Club House & Grill, and the Zero Bond Club, initially slated for 2025 completion.

The company reported Q1 2025 net income of US$227 million (US$2.29 per share) on US$1.84 billion revenue. This figure is down from Q1 2024’s Super Bowl-boosted US$729.2 million (US$6.19 per share). Billings highlighted adjusted year-on-year improvements across core segments, excluding the one-time sporting event impact.

Slot Gains and Macau Growth

Despite the delays, Wynn Las Vegas slot operations delivered a robust performance, with Billings labeling “investments in premium slot areas and in the team” as significant propelling factors. Metrics including gaming drop, handle, non-gaming revenues, and RevPAR displayed year-on-year increases, reinforcing the company’s luxury standing.

Meanwhile, Wynn’s Macau properties capitalized on China’s Golden Week holiday, with the newly expanded Gourmet Pavilion at Wynn Palace supporting 2,400 daily covers. Billings described Macau’s premium mass market as “fiercely competitive” but highlighted Wynn’s service quality, product differentiation, and data-driven market as outstanding advantages.

Global Expansion Advances

While its Vegas projects stall, Wynn’s UAE venture, Al Marjan Island, hits its 47th-floor construction milestone with interior fit-out and beachfront poolscape development progressing. The company reassured that plans for a 2027 opening are still intact.

Wynn is exploring opportunities in Thailand, which ebbs closure to passing the Entertainment Complex bill into law. Japan is also a potential target, but Billings stated they still must overcome licensing and ownership hurdles.