Wynn outlines expansion plans

Tuesday, May 4, 2004 | 11:04 a.m.

Steve Wynn's Wynn Resorts on Monday outlined plans for expansion of the $2.4 billion Wynn Las Vegas resort on the Las Vegas Strip.

Preliminary steps -- some of which have previously been reported by the Las Vegas Sun -- include an additional showroom, 18 additional fairway villa suites adjacent to the golf course, acquisition of 10 homeowners' lots adjacent to the former Desert Inn golf course, expanded parking and demolition of the remaining structures of the former Desert Inn.

Some of these steps are now under way, 11 months before the planned opening off the resort. The demolition is needed to prepare for the future development of an additional casino and hotel tower.

Wynn Resorts said the cost of these improvements -- not counting the planned additional casino and hotel tower -- is approximately $198 million, including interest and financing fees.

The Sun has reported that the additional 1,300-room tower and casino are expected to cost more than $500 million.

Wynn's announcement Monday came as analysts grow more bullish on the prospects for his megaresort, the most expensive ever in Las Vegas, and his Asian casino venture.

Besides the Las Vegas property, Wynn Resorts' Macau casino in China is expected to open in mid-June 2006, BusinessWeek reports in its May 10 edition's "Inside Wall Street" column.

Gambling in Macau generated $3.6 billion in revenue last year and the city could thrive as an Asian gambling center, the magazine said, citing Deutsche Bank analyst Marc Falcone, who has a 12-month target of $46 for the stock.

Wynn Resorts doesn't have sales currently, and revenue could be $738 million next year and $1.2 billion in 2006, the magazine said, citing Prudential Securities analyst William Lerner, who expects the stock to reach $55 in two years. Shares of Wynn Resorts were down 36 cents to $41.23 in early composite trading on the Nasdaq Stock Market today. They closed Monday at $41.59, up $1.66.