Wynn Resorts has decided to not proceed with $200m worth of renovations to the Encore Las Vegas as a result of the rising costs of materials off the back of President Donald Trump’s tariff war. This includes the price of furniture, equipment, and fixtures.
will re-source and re-spec all the work to ensure that they get the best prices possible
The company’s CEO Craig Billings revealed the news during the first-quarter earnings call, saying that capital expenditure projects totaling $375m in Las Vegas will be halted until “tariff rates have settled.” Then the firm will re-source and re-spec all the work to ensure that they get the best prices possible for the “most severely affected items.”
While the main work centers around remodeling the Encore tower, other projects in the pipeline include expanding the high-limit gambling area for table games, work on the Golf Course Club House & Grill, and the Zero Bond club.
When trying to provide a timeline as to when the work might take place, Wynn Resorts Chief Financial Officer Julie Cameron-Doe said that rescheduling won’t be an easy task in the current economic environment and that re-specing is a lengthy process.
Economic uncertainty has had an impact on the company’s bottom line, with first-quarter revenue in Las Vegas falling $11.3m year-on-year to $625m as visitor numbers have fallen.
