Las Vegas propels Wynn Resorts record in March after omicron effect in January
Q1 earnings call shows ramping up
LAS VEGAS (KLAS) — Wynn Resorts had a January dominated by the omicron variant, but by the end of the first quarter, finances were looking much better.
Wynn’s first-quarter earnings call with investors highlighted the bright spots, with company officials saying hotel occupancy hit 91% in March, along with a record profitability one month. The company’s adjusted real estate EBITDA – a common measure of profitability – increased 467% from the first quarter of 2021. For the quarter, hotel occupancy was 76.9%.
The average daily room rate charged at Wynn Las Vegas has climbed 30.5% from the first quarter of 2021 and now stands at $432.
Wynn Resorts reported operating revenue of $953.3 million, an increase of $216.7 million from the first quarter of 2021. Las Vegas operating revenue drove the bulk of this increase – $262.5 million – to offset declines in Macau. The company’s Boston Harbor property saw an increase of $60.7 million.
“Our first quarter results reflect the continued strength of Wynn Las Vegas and Encore Boston Harbor, where our teams’ relentless focus on five-star hospitality and world-class experiences combined with very strong guest demand for delivering a new first quarter record for property adjusted EBITDA at both properties,” said Craig Billings, CEO of Wynn Resorts, Limited. “In Macau, we remain confident the market will benefit from the return of visitation when restrictions of travel will diminish.”
The company has also seen the return of some convention business, but international travelers have still not returned to meaningful levels.
Many of the numbers posted in the first quarter were above 2019 (pre-COVID) levels.