Wynn Resorts Aktie

Welcome to the Wynn Resorts Third Quarter 2026 Earnings Call. [Operator Instructions] This call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the line over to Craig Fullalove, Chief Financial Officer. Please go ahead.

Thank you, everybody, and welcome to the Wynn Resorts Q3 Earnings Call. On the line with us today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Jenny Holaday, Linda Chen, and Frederic Luvisutto. Please note that we published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true.

I will now turn the call over to Craig Billings.

Thanks, Craig. Good afternoon, and as always, thank you for joining us. This was a complicated quarter with more headwinds than tailwinds. But through all of it, our teams at each property executed very well given what each of them can control. Here's what we delivered and how we see things going forward.

I'm going to start here in Las Vegas. Wynn Las Vegas generated $158.8 million of adjusted property EBITDAR. Unfavorable hold cost us just under $24 million, and the summer market was a headwind. Against that, the team delivered a 3% increase in both RevPAR and ADR, and retail lease revenues were up 8%. Those are all indicators that the high-end consumer remains healthy. I'm proud of how the team executed. More recently, October was actually quite strong with casino drop, ADR, RevPAR, and retail tenant sales all up year-over-year. In October, we opened the Cliff House Grill, the clubhouse and restaurant on the 18th green of the Wynn Golf Club. XS Nightclub has completed its renovation and reopens. The Encore Tower remodel remains on track for completion in the first half of 2027. As we have mentioned several times now, we expect CapEx in Las Vegas to decline relative to the past several years with select investments in food and beverage and nightlife in 2027.

Looking ahead, the remainder of the fourth quarter looks quite healthy. As is now often the case, we do particularly well when multiple market drivers overlap, and this quarter has F1, a robust convention calendar, and the NFL season. F1 weekend is pacing ahead of last year in rate and occupancy with demand for tickets and rooms still very high. Beyond the fourth quarter, our group and convention business for 2027 has both room nights and rate pacing ahead of where 2026 and 2025 stood at this point.

Turning to Boston. Encore Boston Harbor generated $50.1 million of adjusted property EBITDAR. In Boston, the strike, which kept 1,300 team members out through the whole of September, proved to be a modest headwind. I'm grateful to our team for keeping the property running to our exacting standards throughout the strike, and I'm pleased to announce that we were recently able to reach a framework for resolution with union leadership that is both fair and economically feasible over the long term. Union leadership has recommended that agreement to its members and a ratification vote will begin later today.

Moving to Macau. Wynn Macau generated $255.3 million of adjusted property EBITDAR with VIP hold adding just over $12 million. Quarter was mixed in Macau with a soft September. And while the equity markets often take a more binary view of China and Macau, we don't really focus on whether the market is up 2% or down 2% in a given month. We instead focus on the long-term fundamentals. China is a large, complex economy that has been doubted many times before and keeps adapting. We're not betting on a straight line. We're betting on that adaptation. In October, Golden Week drop, handle, and retail sales were in line with last year, and the holiday period then ran longer than usual, though consistent with reported October GGR figures for the market, volumes declined into the end of the month. In the third quarter, we began construction on 3 previously announced projects in Macau, the Enclave, the theater, and event center. The theater and event center remain on track to open in 2028 and the Enclave in early 2029, adding 432 suites to Wynn Palace, which already runs occupancy in the high 90s.

Finally, Wynn Al Marjan Island. Construction continues to move quickly with finishing work underway throughout the property, including the fit-out of all guestrooms. Preopening hiring and operations planning are advancing well, and we remain on schedule for a September 2027 opening. We acknowledge the uncertainty in the region. But as I've said before, we are firm believers in the resilience and adaptability of the UAE. I believe Wynn Al Marjan Island will be the most exciting integrated resort opening globally in over a decade. Our future remains bright.

I'll now hand it over to Craig Fullalove to run through some additional details on the quarter. Craig?

Thank you, Craig, and good afternoon, everyone. Let me walk you through the financials for the quarter, starting in Las Vegas. Wynn Las Vegas generated $158.8 million of adjusted property EBITDAR on $575.2 million of operating revenue for a 27.6% margin. Unfavorable hold was a significant headwind, costing us just under $24 million in the quarter. On the cost side, OpEx, excluding gaming tax, ran $4.3 million per day, up 0.4% year-on-year. That slight increase is reflective of our continued discipline in managing costs, including FTEs, despite the inclusion of Zero Bond and Sartiano's, which continue to ramp on full staffing levels.

Over to Boston. Encore Boston Harbor delivered $50.1 million of adjusted property EBITDAR on $194.7 million of revenue for a 25.8% margin. OpEx per day came in at $1.11 million, down 4.4% versus the third quarter of last year, partially reflective of near-term cost reductions related to the ongoing labor strike in that region.

In Macau, the team delivered $255.3 million of adjusted property EBITDAR on $919.2 million of operating revenue for a 27.8% margin. VIP hold ran above our theoretical expectation this quarter, representing a positive impact of just under $12.3 million. On costs, OpEx, excluding gaming tax, was approximately $2.9 million per day, up 5% year-on-year and down 60 basis points quarter-over-quarter. Similar to Las Vegas, that year-on-year increase is driven partially by deliberate investments in the premium customer experience with the opening of our Chairman's Club expansion earlier this year plus normal course cost of living adjustments.

On Macau CapEx, as Craig mentioned, we recently began construction on the theater and event center along with the Enclave Tower at Wynn Palace. Spend on these projects in 2026 will be limited to some piling and early development works with funding for these projects coming from free cash flow generation out of Macau. We continue to expect full year 2026 expansionary CapEx for Macau to land in the $350 million to $400 million range, as shown on Page 23 of our investor deck.

Turning to the balance sheet. Our liquidity position remains excellent. $4 billion of global cash and revolver availability as of September 30, split roughly $2.5 billion in Macau and $1.5 billion in the U.S. That strong cash generation gives us the flexibility to keep returning meaningful capital to shareholders on both sides of the Pacific. On the Macau side, the Wynn Macau Board approved a 2026 interim dividend of $150 million, up from $125 million in the prior year, which was paid in the third quarter.

We strive to maintain our current practice of capital return via an industry-leading dividend as a means of showing our confidence in the Macau market, and we'll continue to revisit that dividend level with the Board as appropriate. At the Wynn Resorts level, we bought back $58.1 million worth of stock in the quarter. Additionally, our Board has approved a cash dividend of $0.25 per share payable on November 30 to stockholders of record as of November 16.

In terms of total CapEx for the quarter, we spent approximately $201.6 million, primarily related to the Encore Tower and spa remodels, Tower Suites Bar, XS renovations, and construction of the Cliff House Grill in Las Vegas, as well as on some early piling work for the theater, event center, and Enclave projects at Wynn Palace. This is in addition to normal course maintenance across the business. Separately, we contributed $62.2 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our cumulative contribution to just over $1.12 billion. We've also continued drawing on the Marjan construction loan with $1.76 billion drawn to date. On our 2Q call, we increased the expected budget for Wynn Al Marjan Island by $600 million, of which our 40% share equates to approximately $240 million and now estimate our remaining share of required equity, including the Janu project, at approximately $465 million to $590 million.

With that, we'll open the call up to Q&A.

[Operator Instructions] Our first question will come from Dan Politzer with JPMorgan.

Craig, I think it was helpful that you gave some forward-looking commentary on Las Vegas, especially as we think about 2027. Do you think that you have the makings and the kind of backdrop for the market is supportive enough to kind of get back to a growth algorithm in Las Vegas? Or do you need to see incremental recovery or kind of strength start to pick up on the leisure side from some of your competitors?

Thank you for the question. I mean, first, I think it's important to kind of talk about from a high level what's happening in Vegas. If you think about it, over the last decade, the city has added pretty significant new demand drivers, the Raiders, the Sphere, F1, the expanded and renovated convention center. And so in a quarter with several of those demand drivers, like the fourth quarter that we're in now, pricing power is very strong, and you can really top tick EBITDA.

Summer has the fewest drivers of any period of the year. Corporate business is light. There's fewer events. The NFL season hasn't started. So some quarters have many drivers and some have few. But even in those quarters with few, we're still well above where we were from an EBITDA perspective 5, 6 years ago. And our own numbers kind of don't show a consumer issue. I mean, RevPAR and ADR are both up, retail lease revenue up. October was strong, which is what you'd expect as those drivers return. So from our perspective, Las Vegas is doing really well, and our pricing power remains very strong.

Second, the group and convention business, our longest leading indicator, as you know, also looks strong in 2027. 2027 is pacing ahead of where 2026 and 2025 stood at this point. And third, look, we've performed so strongly for so long that we have tough comps. And that's not a comment on demand. It's just a mathematical fact. So I don't really think about it as the leisure customer needing to return or come back. We sit in a very unique position, and I feel great about where we are today, and I feel good about 2027.

Got it. And then on Macau, it's just the high-end play. I guess, look, that's the majority of your business anyway. But are you seeing any differences between the high end and the super high end? And just given what you've seen in terms of the tax policy from the government lately, has there been any change in terms of people kind of starting to come back to Macau just within the last few weeks?

Sure. Look, there's a lot of moving parts in China and Macau at the moment. And much like you can't pin kind of singular narratives on the U.S. economy, it's hard to pin singular narratives on China and on Macau. The economy is complex. It's in the midst of change with regional and industrial variation, just like the U.S. There were well-understood effects from the World Cup and seasonality in the quarter that we just reported. There are tax policies that you mentioned. But really, I wouldn't try to reduce a very complex economy to a single narrative. I will say if capital controls were the issue, I don't think we would have seen a Golden Week that looked a lot like 2025.

Our next question comes from Shaun Kelley with Bank of America.

Just I wanted to see if we could touch again on Las Vegas. Craig, the performance there, I think, especially on the RevPAR side of the house is quite notable with RevPAR up relative to market. Just wondering if you could talk a little bit about initiatives or pricing strategies you put in place because you clearly held serve really well in what was pretty difficult market conditions. I was just looking for a little bit more color on what drove that outperformance.

Sure. Brian, do you want to talk a little bit about rate versus occupancy strategy, how we think about filling the place, et cetera?

Sure. We've gone at length to really model the optimum EBITDA with the balance of rate and occupancy. And this market has always drove occupancy and tank rate to fill that occupancy in need periods like the summer. And we saw based on what we put together that, that really wasn't the right model for us, especially where we operate in the market and the segment within the market. So we drove the right level of occupancy and ADR to maximize EBITDA for us. That was really also based on the group business that we laid as a base and that the team continues to close business for our future in the base business so we can yield correctly. And we manage segment by segment to make sure that we fill the right guests at the right place at the right time.

And I think you can look at our rates over F1 and get a pretty good sense for where we're pricing relative to others in the market. We continue to invest in the joint. We continue to focus on service excellence every single day. We manage the place very, very nimbly and very, very aggressively, and we're able to pick that up in rate, and we're proud of that.

Yes, F1 is right now pacing ahead of '24 and '25 in both rate and occupancy revenue as well as on the casino side. So the team is doing a great job getting ahead of it and looking good as we look forward.

Glad to hear it. And then maybe just as a quick follow-up on Macau. Any color you could provide more on sort of the financial or accounting implications of the subscription agreement? I know it was sort of something that was followed along in there, and it applies to every operator in the market. But if we could just get a little bit more color on how it works for Wynn, that would be helpful.

Sure. Let me start, and then I'm going to hand it to Craig Fullalove to talk through the accounting. To put -- to put the subscription agreement in context, you can think about satisfaction -- we have $2.6 billion of commitments, concession-related commitments. And you can put them in kind of 3 buckets: CapEx, OpEx, and this fund. Now we'll always have a preference for CapEx. It's additive to the amenities of the property. It drives foot traffic for all the obvious reasons. And we have a pretty locked and loaded CapEx plan, a substantial locked and loaded CapEx plan that satisfies a giant chunk of that $2.6 billion.

OpEx and the subscription agreement commitment that you referenced, they're more fungible. And Craig will talk about the accounting, but those commitments that we're making go on the balance sheet as opposed to OpEx, which is obviously better for EBITDA. So from our perspective, we don't -- kind of don't mind it, maybe a way to say it. Craig, do you want to talk a little bit about the accounting?

Yes. I mean from an accounting standpoint, to Craig's earlier point, the benefit of the fund is that it ultimately will sit on balance sheet as opposed to within OpEx. So that's obviously better from an EBITDA standpoint. We're working through the accounting of it at the moment. But at the end of the day, we're comfortable that it will sit on balance sheet. And ultimately, for us, we think that's better than funding through operating expenses.

Our next question comes from Lizzie Dove with Goldman Sachs.

You gave some really reassuring commentary about October kind of across the board and particularly on Vegas really. I was hoping you could kind of pull out the kind of leisure from those statements to the extent that you have seen that recovery as you've got kind of more into the event-driven cycle, as you mentioned. And if you feel like that leisure demand has found a bottom over the summer?

I guess, Lizzie, thank you for the question. I guess what I would say, and then I'll ask Brian to provide his thoughts is it doesn't really make sense for us to pull out the leisure demand because the whole point of us being able to top tick rate is to drive the group base and then drive leisure pricing on the back of that. And so I think my point on the fourth quarter was that when you have the combination of group, you have the combination of these market events. When you have the combination of all of these things, you have -- you obviously have the opportunity to really push rate, really push occupancy if you so choose and really take advantage of every lever. So for us, we're not really going to pull kind of leisure out specifically and say, are we getting the right leisure rate? We're getting the right leisure rate because it's clearing the market, if you know what I mean. Brian, would you add anything?

Yes, I'd say the demand drivers actually apply to every segment of our base. So not just on the group side, F1 is a good example where group rate is extremely strong. Leisure and transient are doing very, very well, top of the market, and we're getting more than our fair share, at least our fair share, I believe, of casino from what it looks like right now. I'd also add that one of the indicators we look at to look at the leisure transient segments are really retail sales or luxury retail sales that we have here. And not only did we pick up in Q3, but in October, for us, we had another high-end increase, which we thought was relatively healthy for this high end of the market. So it continues to roll. We feel good about it, and the indicators are still positive for us.

Got it. Great. And then just as one follow-up. So as you mentioned and Shaun asked about, you've seen some of the best hotel performance that we've seen across the board and really strong RevPAR. I guess I'm wondering like what -- how do we kind of reconcile that versus kind of table drop being down year-on-year? Is it a different type of customer that you kind of saw coming to Vegas? Or I don't know if there was something with the renovations in the base that impacted occupancy or RevPAR at all, but just curious of the kind of dichotomy there.

Sure. It's a good question. Look, there's really 2 components to my response here. One is pretty technical. The first is 1 or 2 players can swing your drop pretty significantly in our business. And that's just the nature of what we do. And so I don't kind of look at month-to-month drop numbers and sweat it all that much. You're looking for broad longer-term trends and are we winning overall. I would also point you to market share when Nevada releases their numbers and our market share remains very, very healthy, particularly relative to pre-COVID.

The second thing is there is a relationship between low hold and drop. And again, it's a little bit technical, but the way that a player plays is a player will take a marker, they'll hit the table, they'll draw on that marker. And they have the ability to -- if they're winning, they have the ability to repay that marker and that never goes into drop. And so again, it's more accounting nuance than it is anything else. But all of those things can affect the drop numbers. And so in a quarter where 1 or 2 players that love us but didn't show up in this quarter, and we had unusual winners where they're repaying markers at the rim, we call it. And therefore, that doesn't end up in drop, you can see swings in drop.

Our next question comes from John DeCree with CBRE.

Maybe to shift gears to the Middle East. I know, Craig, you gave us a little bit of commentary in your prepared remarks about Marjan. But as we think about moving towards opening next year, I was wondering if you could give us a little bit more detail on some kind of milestones over the next kind of 9 or 10 months as you kind of approach target opening date, some things we should be watching for from your end as things get completed.

Yes, sure. We'll actually start -- we're handing over the building to operations in zones. And we'll actually start handing over the initial zones in the building just after the new year. That means they've been fit out. They're ready for occupancy by the operations team. They can start putting in their FF&E, et cetera, et cetera. So we'll start that early in the new year. Fit-out is, as I mentioned in my prepared remarks, well underway. Hiring of the team is well underway. That handover will continue through July. The ops team will have full control in late July. That provides more than ample time for training and readiness for opening.

And then we'll open in September '27. The vast majority of hiring will occur in kind of the 3-month period -- I shouldn't say hire. We will hire before that, but onboarding of employees will happen in the 3-month period. Leading up to opening, you obviously want to balance between training and minimizing preopening expense and cash out the door. So that will happen in the 3 months leading up to opening. And we'll open the doors, and we're excited to do so. Not all of that is super evident to outsiders because it's all happening there within the building and in and around the building. But of course, we're happy to update you on each of our calls over the course of the next several quarters.

That's great, Craig. And maybe to stick with the development theme, but thinking further out, obviously, a big project to complete in the UAE, but what's your latest thinking on other potential opportunities internationally or even in the U.S., I guess, post elections on Tuesday, there's some talk that maybe something like Texas might come up as an opportunity in the future. So I guess, international U.S. development for Wynn, is there anything that would kind of meet your parameters or you'd look for over the next couple of years strategically?

Wait, there was an election? No, I'm just kidding. Look, the whole landscape changed. I mean it is pretty fascinating. The way I would say it is this, if the UAE opens as we believe it will open -- and of course, the election had an impact on the likely trajectory of the conflict in the region as well, which is great. If it opens the way that we believe it will open, then we have a land bank there, and we should think about how we're going to use that land bank because there's significant returns to be earned there.

Across the street, we have started to doodle and think about across the street here in Vegas and what relationship that property might have to our existing assets and how we might be able to build probably at a lower all-in dollar cost than a freestanding integrated resort by leveraging its relationship to Wynn and Encore. So we've started to think about that. And elsewhere in the U.S. Look, Texas is an outlier. Texas is a fascinating market that is very large today. As we've talked about, I think, on prior calls, much of that business makes its way across the border into Oklahoma and ends up in nothing that gets publicly reported really.

So it's kind of a stealth market that is giant. And so of course, we would consider opportunities there. I think our brand has resonance there. We have a great database from Texas here in Las Vegas. Beyond that, regional gaming in the U.S., I mean, it's tough. I mean the number of kind of high-growth markets, the risk of online gaming and potential cannibalization from online gaming, we're very thoughtful about how we would deploy capital elsewhere in the U.S.

Our next question comes from Robin Farley with UBS.

Just circling back to Al Marjan for a moment. If we were kind of looking at different milestones, when would rooms go on sale for the September opening if things were sort of -- ideally, when would we look for that? And then also on Al Marjan, can you remind us, are all of the costs locked in at this point in terms of your -- the property build?

Sure. On the second question, the costs are substantially locked in. I mean we're -- look, there's still a conflict going on. So that's real, and we have to pay attention to that. But a giant chunk of the costs have been bought out. In terms of when rooms will go on sale, actually quite soon. So stay tuned.

Our next question comes from Brandt Montour with Barclays.

Two quick ones for Las Vegas. Can you remind us what portion of casino revenue or drop or whatever metric you want to give is from Far East play at this point? Are you seeing any spillover from the dynamics that we're seeing over in Macau and the Greater Mainland China? And then the second question is, if you could give us a little bit of a sense on how December's group calendar is shaping up. That part of the quarter is always a little bit different based on sort of leisure mix. So any color on that would be helpful, too.

Sure. I'll cover the first one, and I'll ask Brian to talk a little bit about group mix throughout the quarter. On the Far East side, we don't disclose relative splits. What I would say is that the customer here in -- the "Far East customer" here in Las Vegas tends to be a little bit different than in Asia, and that's definitely been the case over the course of, say, the past 5 or 6 years. They tend to be folks that have established positions either here in the U.S., Canada, in some cases, Taiwan, it's slightly different. So I wouldn't expect dynamics to be quite the same between here and Asia. Brian, any views on -- anything you want to comment on group in December?

Yes. I mean the group mix really varies quarter-to-quarter, month-to-month, and we range anywhere from 20% to 30% of our business. So that's kind of the norm.

But history in December is such that you have some group business...

Solid in the first 2 weeks -- and then prior to Christmas and the holidays and post, it's usually pretty quiet.

Same as every year.

Yes.

Okay. So a little bit too early to read into the end of December based on sort of the booking lead time.

For group, the booking lead time finished a month ago. So typically, you see group book a year to 18 months out. You do have some short-term...

He's referring to leisure.

You do have short-term stuff in group and leisure, it's like a 30-day window.

December's, every year, same story. Multiple levers first 2 weeks, then very quiet leading into Christmas, and then you make a ton of dough at New Year's. And this year will be no different.

Our next question comes from David Katz with Jefferies.

I wanted to get your latest thoughts. And I know there's been so much water under the bridge since our visit to Al Marjan Island. If we were to get to some lower intensity version of the conflict, I guess what I'm asking is, how do you feel about your underwriting and the details that we talked through, so what that -- what that property can do.

Sure. Just as a quick anecdote before I answer, Brian, you were in the UAE 2 weeks ago, right? You stayed at one of the hotels near our place. It was packed with...

It was full of Russians and Russian families.

So if you think about the market, there's so many different levers. You'll recall when we were there at the Analyst Day, we talked about kind of multiple zones of customers, right? The customer that exists in Dubai, the customer that exists in the region and the customer that exists internationally. And all of those are levers. And in each case, I would expect because we have 1,500 keys, demand exceeds supply. And so in one version of a conflict, you are over-indexing to people that are already there.

In a more moderate version of the conflict, you're over-indexing to people that are already there plus people that are in the region. And in a conflict resolution scenario, I think you have our original hypotheses that underpin demand for that building. None of those are inherently worse than the other. They're just different, right? Your midweek trends are different, your weekend trends are different. Your pricing on weekends versus your pricing midweek is different. The composition of people in the casino is different.

We are opening the only joint for thousands and thousands and thousands of miles. You have an extremely wealthy local population, many of whom are expats, many of whom are accustomed to gaming and casino visitation. You have certain demographics that have no problem traveling there today. That was why I opened with the anecdote that Brian answered. And so we remain pretty bullish on the opportunity. It just is different. And that's okay. There's no kind of right or wrong. There's just different.

Understood. And if I may just pivot back to Vegas as an issue I've been asking about seemingly incessantly about some of the property around there. Is my takeaway, should it be that you're making some progress and within, say, a year's time, we could have something more substantive where people like us could put pen to paper on what you're doing?

Could be a year, it could be 3 years. Do you think I'd take the bait there, David? I don't know timing. Look, we have a giant capital project that we're trying to get open that is a seriously exciting, we believe, high-return project. That's where we're focused right now. We are in the privileged position of continuing to do all of our own design and development. It's one of the core assets of this company, and that attention is focused on Wynn Al Marjan right now. And as that eases, which is very soon, then we'll figure out what we're going to do next.

Our next question comes from Steve Wieczynski with...

So Craig, sticking with the Vegas and actually trying to get a little more specific into the fourth quarter. I mean, look, you noted there's some positive events happening there in the market. But obviously, Encore is still under renovation in the fourth quarter. I think last year, you guys held pretty well in the fourth quarter as well, if I remember correctly. So I guess what I'm trying to get at is here, I assume it's going to be tough to grow EBITDA in Vegas in the fourth quarter. But am I missing anything or anything to -- any kind of color in terms of way to help us think about how the fourth quarter could shape up would be super appreciated.

Yes. We don't -- as you know, we don't guide. So I'm not going to comment on fourth quarter expectations specifically. And frankly, the goal of my prepared remarks and the goal of the commentary that we've made thus far on Q4 is actually not to get people all bulled up. It's to tell you exactly kind of what we're seeing. Like what we're seeing is good. And it's a quarter that has a whole bunch of different demand drivers. That's when we shine. And so I'm not going to compare it to last year. I did make a comment earlier that we have performed so strongly for so long that the comps have gotten very, very tough, and that is an absolute fact. But if you look at absolute performance, we're doing pretty well. So that's really all I'll say.

Okay. I thought I'd take a shot at it, but it didn't work. And then second question for Boston. And look, obviously, positive news coming out about the labor side of things and the union side of things. But it doesn't even sound like that's finalized yet at this point. But wondering -- I don't know if you can answer this or you can't of this, not answer it, but any way to think about what OpEx might look like for that property moving forward?

Here's what I would say. The ratification vote is tonight. The history of ratification votes by union is such that agreements are generally ratified because they're socialized ahead of time with key members of key membership. We will have a read for you on the next call. What I would say is that we are very happy with where we landed. And we'll turn that into numbers on the next call.

Our next question comes from Barry Jonas with Truist Securities.

Just following up on Boston. Craig, your Globe op-ed laid out some of the pressures facing the property. So just in that context, maybe help us think about the longer-term earnings power or if you think we're looking at something diminished on a go-forward basis?

Yes. Thank you for the question. I don't think diminished. I mean, look, Encore Boston Harbor is one of the largest private investments in the history of the state, okay? We invested $2.6 billion and turned a contaminated site where people used to hang their laundry outside across the street and end up with holes in it from all the chemicals flying around. And we turned that into over 3,000 jobs, more than $1.1 billion in tax revenue, right, since we opened. And yet we are dealing, as there are many of the regional gaming markets in the U.S., we're dealing with this persistent threat of iGaming and in the case of Massachusetts, historical horse racing and frankly, with direct competition even from the lottery there, and it's ridiculous. And so that isn't sustainable.

Now I do think there's recognition. When you look at state houses, certain state houses around the country, I think there is recognition about the impact of that potential incremental legalization, primarily on employment, by the way, because no responsible operator is essentially just going to eat it all in margin. And so I think there is recognition among the savvier legislators about what this means to their constituents, frankly, longer term. And so I don't see it as a diminished asset by any means. It's a beautiful asset that turns out a meaningful amount of EBITDA. I think it's just important that we speak up and we speak up loudly so that paper cuts don't become knife wounds. And so that was the genesis of the op-ed.

Got it. Well, we're looking forward to hosting our conference there next month. Maybe just a quick follow-up on John's question on the midterms and new developments. I believe in the past, Wynn has mentioned Georgia as a market of interest. Does that interest still hold now that I believe the governor-elect may be more supportive of gaming?

It does. Yes. There's very select markets in the U.S. where that we actually take a look at. Texas is an obvious one. And I would put Georgia in that bucket as well.

Our next question comes from James Hardiman with Citi.

So going back to Vegas, if we sort of take the $24 million hold adjustment and add that back to the third quarter EBITDA, I get to about a 10% EBITDA decline versus last year. Obviously, that was short of our expectations coming into the quarter. Maybe how did that land versus your expectations internally? Obviously, you don't give guidance. But curious what, if anything, surprised you? Obviously, we've been talking a lot about this increased seasonality. I guess I'm trying to figure out if that is now behind us, right, this sort of post-COVID return to whatever seasonal pattern is the endpoint. Obviously, it's a little bit of a crystal ball question.

But as we're starting to put together our models for next year, regardless of what the full year EBITDA number is, should we continue to expect sort of this make hay while the sun is shining situation where the periods where you have events, if there's going to be growth, it's going to be there, and we just have to sort of hold on during the summer months and potentially see declines. Just think it would help to get that sort of in models as soon as possible given the sky-is-falling sort of perspective that the Street has taken to your stock as of late.

Yes. Thank you for the question. I think if we're being intellectually honest, the way that I would answer that is there's the market and there's our place in it. And it's my opinion. Look, I don't operate the other business -- we don't operate the other businesses on the Strip. So I can only work off the market observations that I have. And I think the comments that I made in my prepared remarks hold true. And I think it's intuitive. When you have a bunch of demand drivers, the opportunity to drive rate, the opportunity to drive occupancy, the opportunity to drive gaming revenue are there. And so I think inherently -- and again, this is just my opinion, okay? Inherently, those quarters are going to perform better than quarters that don't. And the summer is -- has the lowest number of demand drivers. And so it kind of is what it is.

Now our position in the market is I think it's evidenced in the RevPAR that we turned in this quarter is a little bit different. We turned in hotel numbers that were up. We also had rooms out of service, which contributed to foregone EBITDA. So you have to realize that as well with the Encore Tower renovation. And so if you said -- if you asked me, "Hey, do you think summers now are going to be the lowest quarter of the year?" I would say, "Yes." The intellectually honest answer, it's happened for -- it always happened for 2 years. And frankly, it always happened in Vegas for eons. And so I think that just is what it is.

I think mixed up in this narrative about post-COVID new normal is all of the different demand drivers that have been added to the market. And I think to ignore those is a giant mistake. I don't think it's as simple as summer comes along and that's seasonality and it is what it is, you've had a lot of demand drivers added to this market. It's impressive actually what this market has been able to do. And we, because of the customer that we serve, tend to benefit from the best customers associated with every single one of those demand drivers. So look, maybe too cerebral of an answer to your question, but that's the way I would think about it.

That's really good color. And then as we think about Al Marjan, I don't think you've touched on this yet, but going back to the -- to the Analyst Day a year ago, 2 variables that were certainly really important in terms of your ability to have success there. One was third-party hotel development. And then two was you being the only game in town. Any sort of update on either of those fronts as we sit here today?

As far as we are aware, and we keep our ear very, very close to the ground, we will be the only game in town for a substantial period of time. In terms of ancillary hotel development, the conflict certainly has slowed some of the ancillary hotel development. It's important to remember that when -- at that Analyst Day, our perspective was that, that was about -- that was a long-term -- mid- to long-term growth driver, and that remains true today. And so I don't think about that with respect to any given published EBITDA number in years 1, 2, 3, et cetera. I think about that over a 5- to 8-year arc.

All of that development continues to happen. All of it -- some of it was subject to the same supply chain issues that we had. And I can tell you, life on the ground there is totally normal and investment continues to be made, frankly, all over the Emirates. And so there is admittedly a delay in some of that development. It doesn't keep me up at night because really, I think about this as a 100-year building.

Our next question comes from Trey Bowers with Wells Fargo.

I guess the first one would be, we discussed earlier in the call how some of the election results might result in governments that are -- state-level governments that are more amenable to casino expansion. But I guess the flip side of that is also blue states generally are a little more amenable to tax increases and maybe a little less friendly on the corporate side. So just curious your thoughts around Nevada, specifically if you see any risk of any kind of state-level gaming tax increase.

Yes. Look, for those of you that I've known for some time, I'm a student of this industry, right? At Goldman, I covered this industry all over the world. There are markets where gaming is the tail and everything else is the dog. And those markets tend to abuse the industry and kind of move taxes willy-nilly. The U.K. is a prime example of that. And then there are markets where the industry is a really important economic driver and is understood and government is empathetic to the industry. I didn't say they cater to the industry. I said empathetic, and that's an important distinction.

Nevada is a model for how the state and the industry work together. And so I do not -- I will not be up nights worrying about gaming tax increases here. And in fact, the outgoing governor from our perspective was tremendous. The incoming governor is someone we know well and have great respect for. And I feel very, very comfortable that governance in Nevada remains as sane as it has for 70 years.

Great color. And then as a follow-up, just swapping over to Macau. These are a few years away, but wondering if any thoughts around when the event center and the theater are done. Macau is kind of the inverse of Vegas that gaming revenue is now the minority of your revenue in the market versus it's almost all the revenue in Macau. Do you think that shifts over time, like 5 years from now? Could we see a market that there's a much heavier amount of nongaming revenue?

Sure. I think I have extensive thoughts on this, but I'll try to just turn it into a little capsule. How do markets adapt and develop? They adapt and develop through capital deployment. People like us deploy capital, some of it works, some of it doesn't. What works gets replicated and more people deploy capital in similar fashion. And so you are absolutely seeing that in Macau, right? Capital is getting deployed. Some of it's going to work, some of it won't. Some of it will drive non-gaming revenue. Some of it won't drive non-gaming revenue. That's normal. And that's okay.

The challenge that Macau has is they don't have enough hotel rooms, right? So you have a market that does 5x the gaming revenue of the Las Vegas Strip, but has 30% of the hotel rooms. So how do you sell a room for cash? That's tough. And so long term, Hengqin is a component of that. Additional room development is a component of that. Perhaps one day, the government will actually incentivize room development, which they did not do as part of the last concession renewal. But that's really the challenge for the market and diversification of the market. The demand is absolutely there. You go there. Look at all the -- look at the strollers running around the place. It's there. It's just a question of how you can utilize your rooms. It's also why the Enclave is such a no-brainer, right? We run 99% occupancy. We tack on 432 suites. That's obvious EBITDA. So anyway, if you ever want to sit down over a beer and get the hour-long version of that diatribe, I'm happy to do that.

Our next question comes from Ben Chaiken with Mizuho.

Maybe a 2-parter on Al Marjan. I guess as you begin to prepare for the opening, maybe could you shed some light on the early guest communications to the extent that's occurring and the reception? And then as a reference to a prior question, have you pivoted at all in terms of the source markets? And if not, when do you need to make that call?

Sure. Look, you can think about potential guest communication in 3 buckets: host, where we started building our gaming hosting team long ago. And so there's plenty of communication with the players that matter globally. And in fact, the volume of inbounds that we get in other markets is quite healthy. The second is mass marketing, where we will begin to do mass marketing really leading into the opening, which is designed to create consumer awareness. And the third is database build, which we actually started quite early in the market with advertising, call-to-action advertising, gathering people's contact details, things like that. So all of that's underway.

In terms of source market mix, it kind of goes back to a prior question. We have multiple -- one of the beauties of this project is we have multiple source markets from which to draw, a lot of them actually. The receptivity to the UAE ranges from people that live up the street in Dubai who are there already all the way through to people who might be apprehensive about traveling to the region, probably Western European. And so we have a lot of options and a lot of levers to pull. It does impact how we open, to your point. And we will make a decision about the format in which we open. And we'll probably make that decision around February, but we have the playbooks for every single iteration of that today.

Understood. And maybe just a clarification or a follow-up. I mean you made a comment before that demand outstrips supply, and I think many of us would agree with that. I guess part of the question I was getting at is understanding you have different source markets and the whole entirety of the demand does outstrip supply. I didn't know if there was a timing dynamic of like how quickly you can tap into each of those different source markets in terms of a lead time given that this is a moving target.

I see your question. Look, think about the population of the addressable population of the UAE and the wealth of that population. If you're looking for like the bottom line answer, think about the addressable population there in the UAE and think about the wealth embedded in that -- in a giant chunk of that population and compare that to the most successful regional casino MSAs in the U.S. And from that, you can get the base business that is probably easiest to address. Then you can move from there to the fly-to markets that are quite easy to activate. I mean Emirates is running, what, guys, 85% of their schedule now anyway. And so there will certainly be markets that will take longer to activate, but none of them tragically so. And a giant chunk of the market is immediately actionable.

If I can add, when Craig and I were over there, everybody knew about the project in Dubai, and they all asked when it was opening.

The awareness is very, very high.

Our next question comes from Steve Pizzella with Deutsche Bank.

Craig, I believe you repurchased approximately $60 million of stock in the quarter. Based on the price-based grid you've discussed in the past, it would seem the shares remain attractive to you at these levels. How are you thinking about the opportunity to be more aggressive with repurchases from here?

Yes. You're right. It's -- we do buy on a price-based grid, and we think the stock is undervalued. We're coming -- we're really kind of going through the highest constriction point in terms of our various other capital commitments. I'm not talking about Macau; Macau is self-funding. I'm talking primarily about Marjan, Vegas, et cetera. And so we're constantly balancing the repurchases and CapEx. I think you've seen us be a consistent buyer, not a programmatic buyer, but a consistent buyer over the course of the past several years, and we will continue to take advantage when we think the stock is dislocated. Anything you would add, Craig?

No, I think that's right. I mean we've bought back since 2022 over 14% of our shares, and we'll continue to do that when we think the underlying shares are undervalued.

Okay. And then pivoting back to Las Vegas. OpEx per day came in below or towards the low end of the range talked about last quarter. Can you talk about what drove the performance and how we should think about that run rate going forward?

Simple management. It's that simple. And Craig, do you have any forward-looking?

Yes. Going forward, I mean, we continue to expect OpEx per day to be in the range of $4.4 million to $4.7 million. That depends on volumes and event calendar cadence. But to Craig's earlier point, the team here is doing a phenomenal job in controlling FTEs and managing our OpEx despite the inclusion of additional amenities earlier in the year like Zero Bond and Sartiano's, which continue to ramp on full staffing levels.

Our last question comes from David Bain with Texas Capital Bank.

Great. I guess, first, I'm hoping to get any thoughts on international to Las Vegas as we move into '27. It looked like there was some July to September capacity and airline passenger positives. And generally, if you could remind us how international margins compare to kind of the domestic database given length of stay and maybe different gaming velocities.

Sure. International is -- well, I guess international for us comes in 2 flavors, right? International, very high-end gaming play where things are fine and then international leisure. The international leisure business for us is relatively small, Brian, in percentage terms.

Yes. And what really drove the growth of international visitation to Vegas was World Cup.

Yes. But in percentage terms, if you think about our business?

Under 20%, 12%, 15%.

Right. And so for us, it's just not that large. And we -- because we're only 4,700 keys and much smaller than some of our competitors, we can just -- we can backfill those rooms all day. I mean look at our -- as the international visitation has been suppressed, look at our RevPAR numbers and that kind of says it all.

Europe and Mexico were the big drivers for the summer, no surprise with World Cup.

Yes, Southwestern here. You know what, the rest of my questions have been asked. I'm going to reword one.

Thank you for joining the Wynn Resorts Q3 earnings call. We appreciate your interest in the company, and the team looks forward to talking to you next quarter.

Thanks, everybody.

Thank you. That concludes today's conference. Thank you for participating. You may now disconnect.

Welcome to the Wynn Resorts Second Quarter 2026 Earnings Call. [Operator Instructions] This call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the line over to Craig Fullalove, Chief Financial Officer. Please go ahead.

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas, also on the line of Jannie Holliday, Linda Chen and Fredrik Rubasuto. Please note that we published a presentation to provide more color on the company and recent performance ahead of the call. You can find the presentation on our Investor Relations website.

I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true. I will now turn the call over to Craig Billings.

Thanks, Craig. Good afternoon, everyone, and as always, thank you for joining us. I'm going to jump right into the quarter, starting here in Las Vegas. Wynn Las Vegas delivered $215 million of EBITDA in the quarter with particular strength in May. Adjusting for the hold, the property would have produced $219 million of EBITDA. We saw impressive increases in both drop and handle, driving a 5% increase in total casino revenues. We were also pleased to grow RevPAR by 3% and saw retail lease revenue up 8% during the quarter. More recently, the business has seen solid volumes and increases in both slot revenues and RevPAR, though we experienced unusually low hold in the month of July.

Looking ahead, we remain positive about the business in Las Vegas. We are currently on track for another strong F1 weekend and pacing ahead of last year in our transient and leisure business for that event. On the group and convention side, we saw the forward booking pace accelerate as July progressed, and the business looks strong heading into both Q4 and 2027.

Turning to Boston. Encore Boston Harbor generated $56 million of EBITDA with the second order setting records for both 2Q RevPAR and 2Q hotel revenue. Slots also remained an area of strength with revenues up 1%. More recently, demand in Boston has remained healthy with Slot handle running slightly ahead of last year. In Macau, the team delivered particularly solid results in the quarter. The business generated $306 million in VIP normalized EBITDA with unfavorable VIP hold negatively impacting us by nearly $9 million.

Volumes were up nicely in the quarter with mass drop up 5%. So far, in the third quarter, rolling volumes and mass drop were down slightly year-on-year as we absorb the now well-publicized impact of the World Cup, coupled with usual seasonality. We saw a drop pickup in the back half of July as the region entered the summer holiday season and those improving trends continued into early August. Last quarter, we announced Enclave, a new 432 all-suite hotel and expect to commence construction on that tower before the end of the year. This quarter, I'm pleased to announce that we will also begin construction on our long planned and previously announced Event Center and theater at Wynn Palace in the coming weeks after receiving our revised land contract from the government in July. The Event Center and theater are expected to be completed in 2028, and Enclave is expected to be opened in 2029.

Taken together, these projects reflect a clear and confident investment in the future of the Macau market and our commitment to support its diversification efforts. Shifting to Winmar John Island, construction is progressing rapidly. We are now actively progressing through the interior fit out of the hotel rooms with mechanical, electrical and finishing work all moving along in sequence. In addition to construction, preopening hiring and operations planning are advancing very well.

As development of when Al margin Island progresses, regional conflict-related disruptions initially impacted global supply chains and continue to impact the shipping insurance markets. This required certain materials and equipment to be resourced, rerouted or expedited to ensure the project's construction time line. In addition, we experienced certain other disruptions associated with the movement of staff and consultants and other nonrecurring issues. These disruptions have impacted both the timing and cost of the project.

On timing, we now expect the project to open its stores to the public in September 2027. With respect to budget, we are increasing the total project budget for Wynn Al Marjan Island by approximately $600 million. Of that, approximately half is directly attributable to disruption from the regional conflict, material cost increases, shipping cost increases and the preopening and capitalized interest costs associated with the extended construction time line it created.

The remaining portion reflects remeasurement, trade coordination and other costs you'd expect on a project of this scale and duration independent of anything happening in the region. Traveled to the UAE in June and saw the progress firsthand, the site, the team and the surrounding market. My flights were full and day-to-day activity in Dubai was healthy. What we are building in the region is one of a kind and the quality of work on site is truly extraordinary. We continue to believe it will be the most exciting integrated resort opening globally in over a decade, and we remain as committed to and confident in the UAE as ever.

I'll now hand it over to Craig Fullalove to run through some additional details on the quarter.

Thank you, Craig, and good afternoon, again. Let me walk you through the financials for the quarter, starting here in Las Vegas. When Las Vegas generated $215.2 million of adjusted property EBITDA on $643.2 million of operating revenue for a 33.5% margin. Unfavorable hold was a modest headwind, costing us just over $3.6 million in the quarter. On the cost side, OpEx excluding gaming tax, ran at $4.5 million per day, up $0.062 year-on-year. That increase reflects higher business volumes, some contractual wage increases and our continued investment in the types of offerings that matter must to our premium customers. The openings of Zero Bond and Sartiano’s last quarter as well as prices, which opened only midway through Q2 of last year.

We believe the best way to earn and retain the highest value customers in Las Vegas is to continually raise the bar on what we offer them and that's what you're seeing in those numbers. Over to Boston, Encore delivered $56.1 million of adjusted property EBITDA from $209.3 million of revenue for a 26.8% margin. OpEx per day came in at $1.19 million, up just 2.9% versus the second quarter of last year, and that's despite real ongoing labor pressure in that market. The team in Boston is incredibly disciplined on costs and flow through, and they continue to find smart efficiencies across the business while delivering a premium offering that is the senile different from other properties in the region.

Now over to Macau. The team delivered $297 million of adjusted property EBITDA on $1 billion of operating revenue, a 29.6% margin. VIP hold ran below our theoretical expectations this quarter representing a negative impact of just over $8.6 million. On costs, OpEx, excluding gaming tax was approximately $2.9 million per day, up 9% year-on-year, but flat quarter-over-quarter. Similar to Las Vegas, that increase is partially driven by deliberate additional investments in the premium customer experience including the recently opened Chairman's Club expansion that completed last quarter as well as normal course cost of living adjustments alongside variable costs associated with higher business volumes seen across several of our segments in the quarter.

On Macau CapEx, Craig touched on the recent approval for construction to commence on the event center and theater of Wynn Palace, both of which are key concession-related projects in Macao in addition to our announcement of the Enclave Hotel Tower loss quota. We look forward to getting construction underway very soon. Spending these projects in 2026 will be limited to some piling and early development works. All in, we now expect our 2026 expansionary CapEx in Macao to land in the $350 million to $400 million range.

Turning to the balance sheet. Our liquidity position remains excellent $4 billion of global cash and revolver availability as of June 30, split roughly at $2.3 billion in Macau and $1.7 billion in the U.S. That strong cash generation gives us the flexibility to keep returning mindful capital to shareholders on both sides of the Pacific. On the Macau side, the Wynn Macau Board approved a 2025 final dividend of $150 million, up from $124 million in the prior period, which was paid in the second quarter.

We continue to view the dividend there as the cornerstone of our capital return policy to shareholders and we'll continue to revisit that dividend level with the Board over time. At the Wynn resorts level, our Board has approved a cash dividend of $0.25 per share payable on August 28 to stockholders of record as of August 14. In terms of total CapEx for the quarter, we spent approximately $153 million primarily related to the Encore Tower and SPAR remodels and the construction of the Cliffs House Grill in Las Vegas as well as the hotel refurbishment at Wynn Macau, which we completed at the end of the quarter, plus normal course maintenance across the business.

Separately, we contributed $48.1 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our cumulative contribution to just over $1.06 billion. We've also continued drawing on the Wynn Al Marjan construction loan with $1.4 billion drawn to date. As Craig mentioned, we have increased the expected budget for Wynn Al Marjan Island, which had our 40% share will equate to approximately $140 million of required equity. Our equity for the remainder of the project, including Jane is expected to be approximately $525 million to $650 million. With that, we'll open the call up to Q&A.

[Operator Instructions] Our first question will come from Shaun Kelley with Bank of America.

Craig, I want to start in the UAE, if we could, obviously, some positive news on getting a hard date to work from. Can you just talk through a little bit of the strategic pros and cons? I mean, obviously, a bit of uncertainty in the region, but that does push us to more than a year from today. And obviously, on a day like today, it feels like perhaps there's some positive signs. But just anything that needs to happen further in the region and flexibility around that date? Or is this pretty hard and fast -- just help us think through kind of what you were kind of like -- what you were contemplating as you lay this date out. And just kind of how you thought about it, that would be helpful. .

Yes, sure. Look, we talked a little bit about this on the last call when the UAE was absorbing really the heaviest bombardment of the war. And since then, the intensity directed specifically the UAE has eased even as the broader conflict has continued to play out. And that's kind of a point that's consistent with the point that I made in May. This is a tree that absorbs pressure and keeps functioning rather than one that gets knocked off course by it. So Look, I'm not going to tell you there's no risk, but when we underwrote the project, again, I said this last time, we didn't underwrite a region with zero geopolitical risk. We underwrote Hunter with the demonstrated ability to manage through it.

If you look at what's been happening with Dubai Airport, where they've really, over the course of the past couple of months have continued to grow flight capacity and kind of carry on, I can tell you the ground there, supply chain -- consumer supply chains are normal and day-to-day life is pretty normal. So you're talking about an opening that's well over a year out. And if the conflict is persisting, at that point, I think we've got bigger problems from the perspective of the energy markets. So we're planning pretty normal course, construction is carrying on normal course, and we're looking forward to opening the doors. .

Great. And then maybe just switch gears as a follow-up on Macau. I think the mass market table hold at Wynn Palace was exceptional this quarter, maybe one of the highest numbers we've ever seen. I know we typically probably don't hold normalize to that, but just kind of trying to think more about happening in the market, how is the maybe composition of customer change between VIP and maybe the upper level of premium mass? And how sustainable is maybe either an elevated level of play or what you're doing to lean into a higher-value guest there? .

Sure. Yes. I mean, look, we tried to normalize from sale. We did that for a few quarters, and nobody liked it. So we referred it back to normalizing for VIP, particularly as the market became more mass-oriented. And you're right, mass hold was at the higher end of the range. If you're asking if that some type of broad trend based on based on side betting activity and other things like that. I think we've talked about that before, and we certainly are seeing more of that activity on the floor. Really, we kind of just continue to stick to our knitting there. We're very focused on 1 particular customer type. That happens to be the customer type that is driving the market at the moment, and we continue to double down. It's just really, really good management of the business there more than anything else.

Our next question comes from Dan Politzer with JPMorgan.

I wanted to go back to Wynn Al Marjan, but perhaps through a different approach. I guess as you think about that September 2027 opening, how do you think about that timing? And why is that the right time? I guess, asked another way, it's basically the property we're ready to open today. would now be the right time? Are you underwriting a real significant improvement in terms of the operating environment there?

That's the point at which construction and punch will be done and ops has had sufficient handover on the building to actually operate it the way it should be operating.

Okay. And then in terms of Macau, I think you talked a little bit about an uptick post World Cup I mean, how much of that do you attribute to kind of pent-up demand versus an event calendar? Any changes in the promotional environment? I guess we're trying to drive out what's driving that incremental level of play.

Yes. I think it's just a return to a more normal cadence. I think you've heard this from some of our peers in the industry. The world cup occurred during a period that is already impacted by seasonality, frankly, in both markets, Vegas and Macau. Macau, it sits -- it happened to occur in the seasonal trough that generally follows Golden Week. So I think a lot of what's being asked or has been asked on this particular topic is, is this the World Cup -- or is this normal seasonality stacked with the World Cup. And I think disentangling the two with Precision isn't something, I think, really anyone can do with great confidence.

What I can tell you is what we're seeing now, and I mentioned it in my prepared remarks, we're starting to see the summer holidays emerge in the market. We had solid results in the quarter that we just reported with $3.4 million in VIP normalized average EBITDA per day and rolling volumes and mass troughs during the tournament itself and then pick back up in the back half of July and continuing into early August.

Our next question comes from Stephen Grambling with Morgan Stanley.

Maybe turning back to Vegas. I know you gave some good detail on the cadence of the quarter. Curious how you think about the net impact from the World Cup perhaps? And then separately, can you just remind us -- as we look at the renovations that are going on there, any impact -- I know you've been able to mitigate that in the past, but how has that been trending versus your expectations?

Sure. So on the World Cup side, it was obviously less pronounced here in Vegas. Hard to say if it had an impact or not. Again, what I can tell you is -- in July, we had solid drop, very low hold a solid drop and RevPAR grew nicely in July as we exited the tournament. On Encore renovations, yes, the way we tend to look at that is on the peak days when we could have sold those rooms, what was our foregone revenue. It's probably the best way to think about it.

On the non-peak days, when you weren't at that occupancy level anyway, it really didn't matter. And I would expect the absence of that inventory on those peak days to cost us something like $2 million to $4 million in revenue per quarter through the first half of next year.

And maybe 1 follow-up in Macau. As the Chairman's Club has ramped, is this driving incremental customers? Or is it just increased play from existing customers?

Chairman's Club is actually still ramping. I mean it's only been open several months now. So we're still in the process of ramping it. It is designed to do both. And it's also designed to increase dwell time, which obviously has positive impact on hold.

Our next question comes from Lizzie Dove with Goldman Sachs.

I guess going back to Wynn Al Marjan in the September opening, I'm curious like super high level how we should kind of think about the cadence of the ramp there. I think you've said in the past, you don't do soft launches. But just curious with the timing of the peak season there, how you're thinking very high level again, expecting guidance but of scaling revenue and EBITDA and whether this is kind of phased or not?

Yes. I don't -- well, look, let's put the regional -- I think it's important to put the regional conflict to decide because, obviously, we don't control that. So if you think about September, the middle of September, end of September, something like that, you're really talking about entry into the beginning of the peak season there. And you're right, we generally don't do phased openings. So what I can tell you is that we would open the doors and open all the amenities exactly as we would any other particular opening. We don't do hoarding. And so that would be the plan.

And as I mentioned on the last call, we continue to believe very strongly in the market, very strongly in the opportunity and stand by the projections that we put out for the project.

And then I guess now you have this confidence of putting this date out. I know at the Investor Day, there's been a topic of just hopefully having some of the other hotel development in Rosaline kind of up and running for them. I'm curious to the extent you have kind of color on this, if you've heard whether these other projects are kind of keeping pace with that and on a kind of similar time line?

Yes, it's a bit of a mixed bag actually. What I would remind you is the other thing that we talked about pretty extensively actually at that Investor Day is the fact that we were underwriting our base case and our high case really on the back of our own room base and -- we had a long discussion about when we took a little flat for not increasing our numbers at the time, we had a long discussion about how we were going to rely very, very heavily on our own room base. So that remains true to this day. And therefore, we stand behind the numbers that we published.

Our next question comes from John DeCree with CBRE.

Craig, maybe to build on Lite's question, we kind of follow the Ras Al Khaimah tourism and metrics quite closely, and we're pleasantly surprised to see a record first half travel tourism to Ras Al Khaimah despite the regional conflict and a lot of that was domestic demand. A, do you have any comments on -- you were there in June, you said in terms of demand, particularly domestic. Any views on how quickly kind of international demand had recovered when there weren't travel advisories and generally to capital, how do you -- kind of how has your thinking evolved on your customer segmentation as we kind of get through this, a lot of stuff has happened. A lot has changed. The world is very fluid. And now the domestic demand during the last 6 months really surprised. So how are you kind of thinking about the demand pockets and customer segmentation when you open.

Yes. It's -- thank you for the question. It's a good question. So I think what you're really alluding to is which customer funnels are you really focused on at the point of opening. And I think that's the right way to think about it. Right. We've talked extensively about the fact that when this property opens, we expect a pretty robust for lack of a better phrase, local pipeline or renal pipeline. And that is certainly the case, and that's what you're seeing driving Ras Al Khaimah visitation today. We also expect a very healthy, more global pipeline of customers, which, again, we talked extensively about at the Investor Day.

So the real question is, if we fast forward to September of 2027, we're opening the doors, which of those customer funnels are we addressing in the near term and which, if not all of them, and which of those customer funnels are we addressing over time. Because I think it's fair to say, particularly for the core gaming products, given that we will be a monopoly demand should exceed supply. It's just a question of where it's going to come from. And so that changes where you spend marketing dollars, that changes where you focus your host and their attention, but it doesn't change the core of what you're opening. Does that make sense?

It does. Yes, Craig. I appreciate that...

That's the way I would SP577964424 That's the way I would think about it. We have a lot of -- I'll put it to you this way, in an elevator pitch version. We have a lot of levers to pull there, and it's a question of which levers we pull when based on the state of play as we open.

Understood. I think I kind of packaged 2.5 questions there for you. So I'll step into back in the queue. .

Our next question comes from Robin Farley with UBS. .

I wonder if you have any thoughts about some potential go-private transactions in Vegas and how you think that might change the competitive landscape or any aspect there? Curious for your thoughts. .

I really don't -- I mean, I read the same press reports that you do. I think if that's calling out what we already view is undervaluation of the industry, that's the only point really that I would make beyond that. Again, I read everything in the press just as you do.

And I guess I was thinking more about if a lot more of your competitors in Vegas, you are not ultimately end up not being public companies. Do you think that's better, worse or indifferent for Wynn Resorts? .

Well, I think that ship sales a long time ago, Robin. I think if you go back in time, you had a set of public companies that were all in land-based gaming that all own their only estate. And you had a fragmentation of that simplified view of valuation kind of piece by piece over time. You had operators that moved into digital, you had operators that sold their real estate unit operators that own their real estate, which is made the industry quite difficult to compare over the course of probably the past 10 years, which obviously, I think, creates complications for investors and some on the sell side community.

So I think there's been a lack of comparability for quite some time. I don't think having a smaller set of public comparables make it any more or less complicated.

A follow-up on Macau. I guess, how would you describe sort of the current competitive environment in Macau. It sounded like a quarter ago that you felt like it was extremely competitive, but stable. Some others have talked about investing more in both OpEx and CapEx. So I was just wondering how you feel the environment is today. .

I think you described it well. It is a very competitive market, but it has been stable, particularly with respect to the promotional environment and reinvestment. Our reinvestment has been relatively stable over the course of the past couple of quarters. So I think your description of it is accurate.

Our next question comes from Brandt Montour with Barclays. .

So move back to Vegas, I was hoping, could you could give us a sense for how the strip feels just in sort of the April, May bucket versus the June, July bucket, specifically convention heavy months versus measure heavy months. Some of your strip peers for a year now have been sort of dealing with tail to Vegas, and you guys have been pretty insulated from that, given your higher end position. So just wondering if it still feels that way for you guys sort of being insulated there and more stable from convention versus leisure? .

Sure. I'll start, and then I'll ask Brian to weigh in as well. Certainly, as I mentioned in my prepared remarks, May was exceptionally strong. I think you also heard that from maybe 1 of our peers, Yes, I guess only one of our peers, yes, only one of our peers did a call. So I think you heard that from 1 of our peers here in Vegas as well. That was the strongest month of the quarter. For us, I mean, you can see the numbers, and you can see drop, you can see handle. You can see how we're doing. You can see how we're doing on RevPAR. And we continue to feel fine I think you're right. I think we service a very particular customer, and that customer has held up extremely well. On the group side, group has actually been quite encouraging. Brian, do you want to talk a little bit about group, which is really our best leading indicator.

Thanks, Craig. Actually, feeling good on group. Full year '26 group pace remains ahead of '25. So we're pacing well in both room nights and rates. The team has done a great job and 27 is pacing nicely right where we should be for a solid '27. We do see some competitors going out with all-inclusives and different things, highly promotional, but that's not really our core customer. I think it's helping the market, but we're sticking to what we do best.

Okay. I appreciate that. And just a follow-up on Macau. I'm going to ask Sean's question, hopefully, a slightly a different way. The rolling chip volume drawdown year-over-year is just sort of too dramatic, not to be curious about it. Obviously, we know World Cup had an outsized impact on those sort of super higher-end players, but you also gain share in mass drop. So just I guess, more directly asking, are those 2 things linked in any way or are those 2 sort of completely separate dynamics? .

Sure. I mean I think they're somewhat separate in the sense that it's driven by, obviously, the value of the customer. But separate to that, it's also driven by the type of reinvestment that, that customer gets. And so that drives a lot of works. I think within the VIP, we have seen some of that taper off a little bit, but we're seeing that strength come back through on the mass side. And so that's obviously been encouraging for us overall.

We're continuing to calibrate across those different segmentations. And within VIP, we think there's more we can do there, for sure. And we're going to continue to stay super focused on it and keep working towards it. But we're really, really happy with what we're seeing on the mass side, both at Wynn Palace in particular and then at Wynn Macau as well.

And then I would just say, don't forget the impact of credit and credit extension, and we tend to be very, very prudent with Craig. We and others in the market have long-standing relationships with particular customers who we extend credit to and that can tend to make those customers sticky, which is both beneficial and then also problematic. You're trying to take share. VIP is just much more of an individual business. There's a lot more people. And so it tends to be a lot like point.

Our next question comes from Chad Beynon with Macquarie.

Two for me. First, on the equity repurchase program, $75 million in the quarter, slightly up from what we saw in the first quarter, yet at a similar stock price. So if your stock remains in this range here, is this still a good run rate, given the additional capital needed for UAE? Or should we think about maybe dialing that back as you focus more on funding?

It really depends, to be honest, I mean, we -- as we talked about in the past, we repurchased using a price-based grid. We take all of our funding needs into account when we set that price-based grid and some quarters that grade hits in sub quarters, it doesn't. What's important to us is decapitalizing over time. And you've seen that. If you look at the investor deck, there's a cumulative total with respect all the shares that we've bought back. So I could give you a very simple answer to that question, but it wouldn't be intellectually honest. So instead, I'm giving you the intellectual answer on this one.

And then with respect to Las Vegas potentially getting an NBA franchise, I think there's been a number of potential stakeholders who are partnering up or expressing interest. How would Wynn see themselves either in a partnership with an individual using your land or just benefiting from more visitors coming to the city if this ends up landing. .

Sure. I think it falls into the latter category of the two things that you mentioned. And if you really think about the very -- I think we talked about this on previous calls, but if you think about the various sports teams that are resident in Vegas, you can think about leagues that tend to have a very, very high gain count, so a number of games every year. And those leagues tend to be more of local teams, and then you can think about leagues, most notably the NFL, that have a very, very limited game count, and those games tend to occur on or around weekends.

And it is the latter category, the raters in particular, that are most beneficial in my humble opinion to the town because they drive visitation and in particular, to us because they tend to drive premium visitation for a subset of customers that go to those games. The NBA kind of sits somewhere in between. And so we would love to see an MBA franchise in Las Vegas. We're obviously want to be very supportive of whoever ends up to the extent that it does happen with the NBA ends up owning that franchise. And we would play the same role that we play with the Raiders.

We tend to get the premium end of visitation. We tend to get folks who are affiliated with league and with the opposing teams when they're in town, and those are good customers, and they're good for our business.

Our next question comes from Steve Wieczynski with Stifel.

So Craig, one more for the UAE. With the uptick in the budget now for the UAE, wondering how that or if it doesn't change your return profile for that asset, meaning you've got a $600 million increase in budget and maybe more uncertainty around the geopolitical environment, even though you said we should kind of somewhat ignore that. But just wondering if there have been any material changes to the way you're underwriting that asset now.

So to be super clear, I'm not suggesting you ignore. There's a conflict happening, and we completely acknowledge that there's a conflict happening. My point was that we don't control it. And so we shouldn't -- we can form our opening and operating plans accordingly, but we don't control that component. And so that was the point that I was trying to make.

Obviously, the return profile will be impacted by an increase in budget. If you recall, our returns there are quite healthy. So I don't think it changes the investment thesis for us one bit, and then we continue to see a lot of potential upside. I do think it's important to note that when you're managing a project of this scale and complexity, the calculus isn't really kind of spend or spend more or don't. We have thousands of workers on site, thousands of construction drawings in flight, specific trades mobilized in a precise sequence stopping or slowing that down has ramifications that are far more costly than absorbing the budget increase and keeping the project moving. What's important is to get it open and earning EBITDA, the return profile from our perspective still remains very, very strong.

And then as we think about the start of the third quarter, you mentioned Vegas has had -- or Vegas had difficult hold in July, but it sounds like drop there was fine or normal, whatever you want to think about it. So just wondering if you can help us quantify a little bit more, maybe how bad hold actually was so we can get those assets in the right spot to start off the quarter. .

Well, we'll talk to you about that on the next call. We don't get further into Q3 than what we've already disclosed.

Our next question comes from Barry Jonas with Truist Securities.

I wanted to ask about Macau. What extent do you think about the next round of concession renewals as you're planning out long-term investments? And then maybe just as a follow-up, can you remind us how much non-gaming spend you have left for your current concession investment obligations.

Sure. I'll take first portion, and then I'll ask Craig to take the second portion. So first of all, we operate the business in Macao is going concern because that's what it is. And so when we think about CapEx deployment, Enclave in particular, Wynn Palace runs full every night or really close to full every night. And so that's not a speculative bet for us. That's meeting demand that is there today that we are not meeting today. So that's kind of very, very, very clear Beyond that, we committed as part of the concession renewal to implement a series of CapEx projects. We chose to be very entertainment focused because we believe that's additive to the market and can drive the core business and we're executing those projects now. Craig, do you want to cover the...

Yes. Yes, we can -- I mean, obviously, at a high level, we -- as you would have heard before, we've already added recent additions like the Winaluminarium and then the new Gourmet Pavilion at Wynn Palace, which were part of the concession planning. Those opened in 2024 and 2025. We've spoken previously about -- and we've just received the approvals on the Venetian Theater, and those are obviously our anchor CapEx projects that Craig described. Overall, when we went into the concession, we effectively committed to $2.6 billion of overall non-gaming spend, of which $1.6 million of that is CapEx, and the rest is OpEx.

And obviously, this is kind of the piece that's anchoring it and so we're working through that right now. But we're tracking really, really well. And with these new projects now coming online, which we've been dialoguing with the government over many, many years, no one, and they're very aware of exactly where we are in the process in that regard. We're now able to move through those as well. So we're excited to get the construction underway on all of it.

And then just for my follow-up, wanted to extend the promotional environment question to Las Vegas. Anything you're seeing there from competitors or noting?

Not really. The you've seen some new promotional forms. I think Brian alluded to them. And I think one of our peers alluded to them on their call, the all-inclusive stuff doesn't really impact our customer. So the upper end of gaming, which is where we tend to focus, it's always quite competitive, and we're used to that. We tend to compete on product and service and not just straight reinvestment, but I don't see the market exhibiting anything other than normal behavior.

Our next question comes from Trey Bowers with Wells Fargo.

It's Zach filling in for Trey here. So just following up on the previous question on Macau CapEx, you're obviously investing pretty heavily in the non-gaming product -- but just curious, long term, how you're feeling about the gaming -- the amount of gaming product in the market or in your portfolio? And if you think it requires further investment for the market to grow? .

Look, you're talking about a market that's whatever, 5x the Las Vegas Strip with 1/3 of the hotel rooms. And so there's -- it's a very unique market dynamic. And so in that environment for us, what's it about? It's about getting the best heads in beds and getting the best customers in those , which is really been our strategy from day 1. So do we need a whole bunch of incremental infrastructure for the market to grow in Macau, we don't we don't because we're very focused on a very small subset of customers. a little bit like Las Vegas, to be honest. So you've seen us grow and our growth in Las Vegas materially outpaced the growth in the market over the course of the past 5 years.

And so I don't think we need a whole bunch of incremental infrastructure in Macau to grow our business there and be competitive. I think we're going to tack on Enclave and you're going to see exactly what I mean by that. where we have the database to fill those rooms, and we have the occupancy to fill those rooms. So would additional infrastructure would be helpful to the market overall, probably, I think that would be the case in almost any market, but not specifically for us, and we're not dependent on it.

And then apologies if I missed this earlier, but Las Vegas, OpEx per day was $4.5 million. Could you just maybe provide us with any sort of color on the back half of the year and what we should expect and what we could kind of pencil down on our models? .

Yes. Let me start and then Craig will talk talking through the numbers. So look, if you put Las Vegas in context, when you look at the Q2 results, despite kind of normal seasonality, demand remained very solid for us, and you can see that in the top line numbers. We also had notable strength in our retail outlets, which I alluded to in my prepared remarks. But on the other hand, we had contractual labor rate increases, which are real. We had some rooms at Encore that were out of service, and then we had some venues that opened right at the end of Q1. So we had full staffing in those venues, but revenue was really just beginning to ramp.

So I think it's important to keep all of that in mind. The cost base in Las Vegas has increased. It's back. Not just for us for others as well. Craig, do you want to talk about specifics.

Yes. So as you mentioned, we came in at 4.5% for the quarter. We've been guiding at about 4.4% to 4.7% as sort of the range that we put out there through the rest of the year.

No, we have no further questions.

Well, thank you all for attending the conference. We appreciate it. We'll see you all next quarter. Thank you.

Thank you. That concludes today's conference. Thank you for participating. You may disconnect at this time.

Welcome to the Wynn Resorts First Quarter 2026 Earnings Call. [Operator Instructions] This call is being recorded. [Operator Instructions]

I will now turn the line over to Craig Fullalove, Chief Financial Officer. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Jenny Holiday, Linda Chen and Fredrik Luvisutto.

Please note that we published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true.

I will now turn the call over to Craig Billings.

Good afternoon. And as always, thank you for joining us. Before we get into the quarter, I'd like to take a moment to talk about when Amazon and the UAE more broadly. First, I'd like to commend the Emirates on their response during the initial weeks of the conflict. The country has shown an admirable ability to protect its people and its assets. At Wynn Al Marjan, construction has continued to progress with over 22,000 workers on site. The project team has been incredibly resilient. While we have faced logistical and shipping challenges in the region, deliveries have largely continued, and we are rerouting shipments and sourcing alternative materials where needed. Based on conditions today, these challenges are manageable, though we are realistic that the picture could shift as the situation evolves. We do expect a modest [indiscernible] in our opening time line, and I expect that we will quantify that in the coming months. That said, the project continues to move forward every day.

Looking ahead, the UAE has world-class tourism infrastructure, unrivaled airport capacity and a strong policy framework. As the region stabilizes, we expect the country will find smart ways to accelerate tourism, and over the longer term, will continue to be 1 of the most attractive destinations in the world for high net worth residents and visitors.

With that, I'll turn to the quarter starting in Las Vegas. We had an eventful first quarter here in Las Vegas with the debut of Zero Bond and Sartiano's Italian steakhouse. Both venues opened positive guest and member feedback, and I anticipate that they will further strengthen Wynn Las Vegas position as the place to see and be seen here in Las Vegas. I want to thank all of those who were involved in making those opening such a huge success, and in particular, the team at Wynn Design and Development. The combination of those openings and the ongoing efforts of our team led to another period of strong results. Old adjusted EBITDA grew 5% to $235 million, inclusive of our best March in the history of the property.

Casino revenues were up over 9%, driven by increases in both drop and handle. In the hotel, RevPAR was up nearly 10% year-on-year on a 12% increase in rate. That momentum is carried into the second quarter with drop and handle both up versus the prior year. We've also seen positive trends in the hotel with ADR up year-on-year in the month of April. We will begin the Encore Tower remodel in just a few weeks, a project that will ensure our rooms continue to set the standard in Las Vegas. Our group business remains on pace to grow both room nights and rate above 2025, and we continue to feel good about the business in Las Vegas for the remainder of 2026.

Turning to Boston. Encore Boston Harbor generated $51 million of EBITDAR in the first quarter. Slot revenues grew 2% year-on-year despite some very challenging weather in the Northeast and continued gaming expansion in New Hampshire. The team once again tightly managed operating expenses, though wage pressures remain a real challenge at the property and something we are actively working to address. The second quarter is off to a steady start with Drop and Handle both running ahead of last year.

Turning to Macau. The team delivered a strong quarter with VIP hold adjusted EBITDA of $296 million. Lower-than-expected VIP hold impacted the quarter by $17 million. Mass drop was extremely strong, up 19% and Handle was up 32% year-on-year. That moment persisted into the second quarter with Mass Drop running ahead of last year. Premium demand continues to drive the Macau market, and we were pleased to open our newly expanded Chairman's Club during the quarter to strong customer reception. While it's early days for the facility, space is truly spectacular and a meaningful addition to what we believe is the best gaming floor in the market. With Cotai continuing to be the primary driver of high-quality visitation in Macau, and with Wynn Palace regularly nearing 100% occupancy, I'm pleased to announce a significant new investment at the property. The Enclave at Wynn Palace, a 432 all-suite hotel will sit directly adjacent to and connect into the east entrance of Wynn Palace. This is a $900 million to $950 million addition that will increase the existing Wynn Palace room count by 25% and our suite count by 50%, driving more foot traffic into gaming and our existing food and beverage outlets. The design is distinctly Wynn, an evolution of the design language that has defined our resorts from the beginning. You can find additional details on lay in our investor deck on Page 19.

With that, I will now turn the call over to Craig for some additional details on the quarter.

Thank you. At Wynn Las Vegas, we generated $232.5 million in adjusted property EBITDA on $661.9 million of operating revenue during the quarter, delivering an EBITDA margin of 5.1%. And favorable hold negatively impacted EBITDA in the quarter by just over $2 million. OpEx per day, excluding gaming tax, was $4.55 million in the quarter, up 6.8% compared to the prior year due to a combination of higher business volumes contractual wage increases and incremental staffing for new outlets, including the newly opened zero bond and Sartianos as well as places, which opened in May of 2025.

Turning to Boston. We generated adjusted property EBITDAR of $50.5 million on revenue of $205.7 million with an EBITDA margin of 24.6%. We maintained discipline on the cost side with OpEx per day of $1.22 million, up 3.9% compared to the first quarter of 2025 despite continued labor pressures in that market. The team in Boston continues to do a great job of mitigating union-related payroll increases with identified cost efficiencies that do not impact the guest experience.

Our Macau operations delivered adjusted property EBITDA of $279.4 million in the quarter or $989.2 million of operating revenue, resulting in an EBITDA margin of 28.2%, lower-than-normal VIP hold negatively impacted EBITDA by just over $17 million in the quarter. OpEx, excluding gaming tax, was approximately $2.9 million per day in Q1, up 9.9% year-on-year, with the increase driven primarily by higher business volumes, the opening of the Gourmet Pavilion in Q2 of 2025 and the expansion of the new Chairman's Club this quarter, along with normal course cost of living adjustments. In terms of CapEx in Macau, Craig mentioned the new Enclave Hotel Tower at Wynn Palace. Final government approvals are starting to come together, and we look forward to commencing construction on our larger CapEx projects. Spend on the Enclave Tower in 2026 will be limited to some piling and early development works. We continue to expect the initial work on Enclave, together with our other CapEx projects to result in a 2026 expansionary CapEx range of $400 million to $450 million.

Moving over to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of $4.4 billion as of March 31. This was comprised of $2.8 billion and $1.6 billion of total cash and available liquidity in Macau and the U.S., respectively. The combination of strong performance in each of our markets globally with our properties generating just under $2.3 billion of LTM adjusted EBITDA, together with our robust cash position creates a very healthy consolidated net leverage ratio of just over 4.4x. Our strong free cash flow and liquidity profile also allow us to continue returning capital to shareholders in both Macau and the U.S. To that end, the Wynn Macau Board recently announced it has recommended to shareholders an increase in the final dividend for 2025 to $150 million, up from $125 million in the previous period, subject to shareholders' approvals at the upcoming Annual General Meeting on May 28.

In addition, the Wynn Resource Board has approved a cash dividend of $0.25 per share, payable on May 29, 2026, to stockholders of record as of May 18, 2026. During the quarter, we also repurchased 528,000 shares for approximately $53.8 million and an additional $30.6 million so far in the second quarter. These share buybacks, together with our recurring dividend highlight both our confidence in operations and ongoing commitment of prudently returning capital to shareholders. In terms of CapEx, we spent approximately $179.1 million in the quarter, primarily related to Zero Bond, Sartianos and the Clip [indiscernible] Grill in Las Vegas, the new Chairman's Club expansion at Wynn Palace and the hotel refurbishments at Wynn Macau as well as normal course maintenance CapEx across the business.

In addition to that figure, we contributed $10.1 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution today to $1.01 billion. We also continue to draw on the Marjan construction loan with a drawn amount to date of $962.3 million. We estimate our remaining share of the required equity including the new project is approximately $350 million to $450 million.

With that, we will now open the call to Q&A.

[Operator Instructions] Our first question comes from Dan Politzer with JPMorgan.

Craig F, looking forward to working together. I guess this one's more for Craig B. I recognize you're in a very tough position as it relates to navigating the path to getting when Al Marjan open. But I guess can you talk about what have you been doing differently over the past few months to ensure the project stays on track to the extent that it's within your control? And then can you talk about supply chain constraints on getting materials to the region, and how do you think about impacts to the surrounding area of supply chain as supply surrounding area hotel supply coming online in the coming years?

Sure. I guess, first of all, Early on, our focus was really on -- of course, on team safety. And honestly, I mean, life kind of carried on relatively normally in the UAE. So really, that was about mental health more than it was physical health, and as you've seen, the MRI just did an incredible job of defending the country. The team is back in Ras Al Khaimah, both on the design and development side and on the operations side, fully functioning. We're in the building snagging the building. Construction actually continued throughout the entire series of events. And so we're carrying on. I mean, really, the point that you raised on logistics is the only challenge, which is why I called it out in my prepared remarks. And it's not tragic. I mean supply chains have this amazing ability to become flexible and to find additional routes to market, and we've seen that be the case. There are certainly things that are not as easy to get as they would have been before the conflict, but we're more than making do. We're actually advancing the project and moving ahead. So I mentioned that we expect a modest delay, and I use the word modest very, very intentionally because that's what we believe it will be. We don't want to size that until we have kind of a real view on stability. So if I had to turn it into soundbites, construction continues. We're making do just fine, and we will carry on.

Got it. And then just turning to Macau, the new project on clave at Wynn Palace, can you talk about why now -- will this have a gaming element? How do you think about disruption or potential returns on that $900 million to $950 million investment?

Sure. Look, Wynn Palace runs at essentially full occupancy every night. And so when you're at 99% occupancy, you're not making a speculative bet by adding rooms. You're clearly capturing demand that already exists, and that you're currently turning away. So adding 25% of total room capacity and increasing the suite product by 50% in a market that's heavily driven by the premium segment just makes sense for us. I think it's reasonable to assume that you could get pretty conservative here, but it's reasonable to assume USD 2,500 CO per room night, which is incremental $400 million, call it, in GGR. You don't have a lot of non-EBITDA generating amenities that come with the tower. It does not have a gaming element. It has very, very modest food and beverage because it's directly attached to the existing Wynn Palace facility. And so flow-through should be pretty high. I mean that GGR is probably $150 million to $175 million in EBITDA for us. So to us, it felt like it's probably a real no-brainer. In terms of disruption, it's actually -- there obviously may be some disruption, but it's not significant because it's a relatively constrained portion of the -- of our plots where we will be doing the construction, and it's at the east entrance. So if you've been to Wynn Palace, that's the existing bus entrance. So our North and South [indiscernible] [ chairs ] will remain completely open and functional as will the [ promenade ] that run around and into the casino.

Our next caller is Sean Kelley with Bank of America.

And welcome, Craig, look forward to getting to work with you a little bit more closely. To -- whoever wants to take it, and Craig Billings, I'm sorry if I missed this, I dialed in a moment late. But obviously, I think the comment was a modest delay around where we're at with Al Marjan. I'm just curious on maybe just strategically how you're thinking about it a little bit more. We've had some questions around timing? Is it might relate to -- is there an optimal time before the summer? Is it something that given the seasonality in the market, we might want to be a little bit more sensitive to opening during the summer, or could that give you a little bit more flexibility as you're re-ramping into the market? I know there's probably a lot more unknowns, but just any way you're thinking about it might be useful.

Yes, sure. Look, there's pros and cons to both. The -- as we all -- as you all know, seasonality is -- has an impact on gaming resorts, but not nearly the impact that it has on pure hotels. And so Vegas is a good example. Vegas, it gets incredibly, incredibly hot here in the summer. And there is some modest seasonality that has a lot to do with group and convention more than anything else, but it's not wild swings. And I think in the long run, I would anticipate the same thing in the UAE. When you can fill your rooms with gaming customers, you obviously don't have the same level of seasonality that you might see in a pure hotel. So as it relates to the first year in which we opened, I think that's really dependent on the final resolution on what our opening data is, and what the options are available to us. So I would say -- at this point, I would say, stay tuned. But we are forging ahead with the project every day, and we look forward to opening in 2027.

Perfect. And then as a follow-up, let's maybe pivot to Las Vegas. The Q1 operating performance looks super strong. I mean, RevPAR up 10%, I think, is nicely above the market. Could you help us level set how we should think about Q2 and Q3 both seasonality, and there have been some discussions in the market around things improving, given easier comps ahead. So help us think about that from wins perspective, just how we should think about the upcoming periods ahead.

Sure. Happy to, Sean. I think first of all, it's important to remember that we had an incredibly strong 2025, unlike the market in general. We produced over $900 million in EBITDA in Vegas in 2025. We had a record second quarter all-time monthly EBITDA record in the month of August, and we set quarterly records for ADR in both 2Q and 3Q of last year. So we really didn't have a trough. That strong performance obviously has knock-on implications. We will continue to be up against relatively difficult comps. And so the margin expansion that you might normally see coming off a trough quarter isn't available to us. But hey, I mean, Las Vegas is performing incredibly well by all historical standards. You can see it in the numbers you cited several of them. There's a bunch of things to look at and be proud of in Q1 results. And everything that we can see looking out further into the year and based on what we saw in Q1, makes me feel good about 2026. But I do want to carefully extinguish us from the market in general because we didn't see a slowdown in 2025.

Our next call is Lizzie Dove with Goldman Sachs.

Just on the UAE, obviously, there's a lot of recent softness understandably that's completely totally out of your control and hopefully temporary. But I'm curious how you think about longer term, how this kind of influences the ramp profile or if anything has changed in terms of some of the targets or the moving pieces around the targets that you put out in December?

Sure. I mean, look, I'll start at the strategic level. I think it's important to step back and look at the UAE's track record, right? This is a country that has navigated multiple regional conflicts over the past two decades and has consistently come out stronger. They've done that by investing in infrastructure, diversifying their economy, positioning themselves as a neutral hub for commerce and for tourism, and that playbook hasn't changed. What I'd also point out is that the UAE's response to this conflict has, if anything, reinforce their credibility on the security front. Their defense infrastructure performed exceptionally well. And I think the international community I hope, took notice of that. Now I'm not going to sit here and tell you there are no risks. There are logistical challenges today. And depending upon how the situation evolves, there could be more. But when we underwrote this project, we didn't underwrite a region with zero geopolitical risk. We underwrote a country with a demonstrated ability to manage through it and to emerge in a better competitive position on the other side. For the long term, tourism fundamentals in the UAE haven't changed, the airport capacity, the Visa framework, the quality of life, those are durable assets. And I'd remind everyone that the UAE's ambition to grow tourism is a national priority backed by real capital and real policy. And so we think when Al Marjan is positioned to be a meaningful beneficiary of and contributor to that trajectory. And so our conviction in the project hasn't changed. How that translates into EBITDA estimates, it's far too early to tell. I could present you with a bull case, I can present you with a bear case. I could tell you that when the situation stabilizes, as it seems to be, knock on wood, that the Emirates will -- because they're very thoughtful and very proactive will come out with policy prescriptions and smart ways to drive tourism back to the market, and we could certainly be a beneficiary of that. So I think it's too early to say. We're certainly not revisiting any of the numbers that we previously presented. But I got to tell you, we remain as convicted in the project as we were before the consent began.

Perfect. That's super helpful. And then going back to Vegas, there's been talk in lodging, especially about the [ CJ ] consumer and lower end getting better. But with what you've just candid, it looks like luxury is very much still firing on all cylinders, and you're outperforming on the hotel side. So maybe could you put a finer point on that, what you're seeing on that luxury consumer, and how you're outperforming in Vegas? And maybe just anything you're seeing in terms of that business consumer versus leisure, anything you call out there?

Yes, I'll start, and then I'll ask Brian for his thoughts as well. Look, I think the Q1 numbers still at all. Some of that, you could say is the luxury consumer. Some of that, you could say, is us and the very specific strategies that we have deployed over the course of the past several years. But there's kind of three big operating leverage levers in our business. Gaming market share and retail sales, and all of them did extremely well in Q1 and continued to do extremely well into Q2. So I think that is the read. Part of that is a read on us, and part of that is a read on the consumer take that for what you will and split the results between those two attributes, how you see fit. But that's my view on where we are. Brian, what would you add?

Yes. I think you said it well. But the barometer for us as we look forward, both market share that we've taken share in January, February and March, group pace, so we can see what the corporate America is looking at, and how they're viewing the economy in the coming 18 to 24 months, and we're on pace to hit our numbers and exceed our numbers in and then luxury retail sales, which we have a phenomenal selection boutiques here, and they're all year-on-year, quarter-on-quarter growth from very high watermarks from the previous years. So I see those as positive indicators of our customer base and where they're kind of headed at, and we're still seeing the bookings. And you can see by our ADR growth that there's not that much resistance to price at this point. So we feel like we're in a good place right now, not onward.

Our next caller is Stephen Grambling with Morgan Stanley.

I wanted to turn back to Macau. And I just would love to hear any kind of response and impact that you're starting to see from some of the recent CapEx projects there, particularly the Chairman's Club.

Sure. Happy to talk about that. We've really had kind of two major initiatives over the course of the past year. The first was the Gourmet Pavilion, which we've talked about, and the second was the second level of Chairman's Club. And one is more mature than the other. Obviously, the Gourmet Pavilion has been open for some time. And what we've been able to do with the Gourmet Pavilion is drive a whole bunch of incremental foot traffic into the building and be able to retain the customer that is already in the building longer than they might have otherwise been there because it's no secret that we, relative to our competitors, have generally historically had very, very good oak cuisine and upscale restaurants, but didn't have as many more accessible options. And so it's played an important role in retention. On the Chairman's Club, the early signs are actually quite good. There's really two reasons to put the Chairman's club into place. One is obviously, to take incremental share of that customer. I think that will take a little bit based on visitation patterns. I think that will take a little bit longer to play out. The other is, again, to keep people keep people around longer, which has positive implications on hold, and we are beginning to see that now. When we put the Enclave into place, again, with those incremental rooms, the beauty of that project once again is that we're pushing a whole bunch of new customers that we can accommodate through the pre-existing facilities, and that will play into both of those CapEx -- both of CapEx projects that I mentioned, the Gourmet Pavilion and the Chairman's Club second floor.

That's helpful. And going back to Vegas, I think that you have in there that you're still on plan and planning through the refresh. Can you just remind us of the cadence there and if anything has changed in terms of the timing?

Nothing has changed in terms of the timing. It will commence shortly, and then we do it in in pockets over the remainder of 2026 and into very early 2027, working around kind of peak occupancy points.

Our next caller is John DeCree with CBRE.

Craig, I know you've probably already provided everything you can about UAE. But maybe to pile on 1 more question. I know we spent a little bit of time talking about construction, but I wonder if you could comment on any changes in some of the ancillary items, building property awareness, hiring, the pace of hiring marketing programs and things like that might be a little bit early for some of that. But has anything changed in terms of strategy or pacing on those fronts?

No. I think your mass -- in terms of awareness in all of the preopening branding that we would do nothing really changes. Everything kind of carries on as normal. In terms of the mass hiring to the -- when we are able to quantify our modest delay, we will obviously we will obviously slightly delay mass hiring, but that's really just because you don't want to burn cash that you don't need to burn. And so you bring people on ahead of -- just ahead of opening and then you aggressively train them. In terms of the ability to hire, I got to be honest, we haven't seen any slowdown whatsoever in interest in working and building. Remember, substantially all of our operational leadership team is already in place. So the senior talent question is kind of largely behind us, but we haven't seen it let up. I mean, again, it's interesting to watch the news coverage. And I don't want to minimize what's happening in the region, and I'm not minimizing what's happening in the region. I've been watching it our day to day for four weeks now. But life day-to-day has kind of -- in the UAE is kind of carried on and things are getting done. And again, the Emirates are doing a great job of making sure that the the population is secure. So other than things moving back some small amount of time, I don't see a significant change in anything we would do preopening.

I appreciate the additional color there. And maybe a quick follow-up on Las Vegas. You've already commented quite a bit about the 1Q results being quite strong. But I wanted to ask, I know last Vegas had some pretty significant citywide events and not typically your customer. But do those big citywide kind of sellout that we see like CONEXPO, does that help at all in terms of pushing rate, or would you say your business is still just kind of different focus from that?

No, that's -- it's definitely beneficial to our business for sure. I mean, usually, we draw a lot of business off citywides. And the usual playbook is that we tend to in many cases, house the executives, the VP level folks, et cetera, et cetera. So that's super important to our business. And then, of course, Beyond that, anything that creates compression in the city more broadly is also inherently beneficial for us. Brian, would you add anything to that?

No, compression is key. When the city fills and the cream of the crop want to stay here, we're able to accelerate the ADR and the yielding and our team does an exceptional job of that. So I think we've got every bit of it in Q1, it was quite remarkable. Team did a great job.

Your presumption that we do a lot of kind of all in-house business, which I think was implicit in your question is absolutely correct. But we take advantage of citywides just like everybody else in the market does.

Our next call is Robin Farley with Union Bank of Switzerland.

Great. My question, going back to Al Marjan, not so much about your resorts specifically or when I opened. But I wonder if you have any thoughts on the broader market. We can see what's happening with the occupancy rates in the region right now. Just what your thoughts are about the timing for recovery in that market, sort of independent of when you ultimately end up opening just what your expectations are for recovery in the market more broadly the time frame.

Yes. I think it's a little early to start forecasting the recovery pace. But what I would say is this, you have incredible airlift in Dubai. You have a market through which many folks transit if nothing else, because of that airlift. You have a government that from a policy perspective, has committed itself to tourism, and you have incredible amenities and incredible hospitality. So I think when things do stabilize, I think you have to assume that policy prescription and really [ Emirates, ] frankly, are going to hit the gas in terms of trying to drive folks to the market as quickly as they can. I think our read is that there are certainly certain demographics out there that would be delighted to return to the market today. And then there are other demographics that probably would be a little bit more cautious. But if you look at history, the demand curve on travel is extremely flexible. I mean look at the -- I hate to bring up the events that have happened in Las Vegas. Look at events that have happened in Las Vegas and response, the response to that, referring specifically to 2017, the response to that was real, but obviously short-lived. I can look at 9/11. I can look -- I look at a number of events that might have called into question the recovery of trouble and churn it did. And so again, I'm not going to make any forecast as we're sitting here on this call, particularly as things are just starting to settle down. But I don't think you should -- I don't think you can underestimate the flexibility of the traveler and the desire of local constituents in the UAE to stimulate a return to the market.

Our next caller is Brandt Montour with Barclays.

So a two-parter for Las Vegas. You guys came in OpEx per day, just a little bit higher than the 4.3 to 4.5 target range you laid out last quarter. And I don't want to connect anything to that, but one of your peers this earnings season did call out an elevated level of sort of related claims and liabilities related to labor that did sound sort of Las Vegas wide in nature. And so maybe you could take those two questions separately and let us know if you're seeing any of that creep in your labor pool.

Not at all. What you saw, really, there were really two things happening in OpEx. One is the wage increases that we have signaled for numerous quarters now, many of which are contractual. And the other is we started feeling just a little bit of pressure in COGS in food and beverage. And I think you've seen some of the some of the food price volatility that has been in the market. We try -- what we try not to do is go adjusting portion sizes and things like that. based on potential transitory moves in underlying input costs because that can have brand impacts and perceived value impacts and what we'll continue to do is watch it. And if we have to make a move on price, we will.

Okay. That's super helpful. And then over in Macau on the new tower, you gave us some thoughts on that. I'm just curious, when you underwrite that, are you underwriting to a promotional environment or competitive environment similar to today in the premium mass, or do you sort of think about it as as maybe something that could lighten up by the time you open or if it even needs to? And then the other question would be is that that product going to be suite that's tiered above your current suite product, or would that be sort of kind of the same?

Sure. On the first portion of your question, I think the investment thesis for a project like this is really simple. Same product, more customers. So you're tacking on additional room supply in a very efficient manner and driving that customer to your preexisting amenities in your pre-existing facilities. We've been actually reasonably disciplined with respect to reinvestment. I don't think we excessively considered reinvestment trends in underwriting this project. We underwrote it based on what we know our reinvestment rate to be. And the room product itself, so the base room will actually be slightly larger than our base room within Wynn Palace. They are all suites, so they all have separate living chambers and bed chambers. And the way I would describe it in terms of aesthetic finish is that it is complementary to our existing product. It's not the same nor is it a radical departure that would feel as though it was off brand.

Our next caller is David Katz with Jefferies.

Craig F, welcome to the hemisphere. I wanted to just go back to Al Marjan, you talked about alternative supplies and things like that. How comfortable are you today with the budget and the cost? And might we sort of build a little bit more cushion in there as we go forward?

Yes, it's a good question. The only thing I would say, there's really two prongs that I would use to respond. The first is shipping rates have definitely gone up. It's nothing significant. It's -- in the end, that will be likely a rounding error on the total budget, but shipping rates have certainly gone up. And then the second is we have a team that's on the ground there now, and we will be carrying the cost of that team for slightly longer. So that too will be incremental preopening budget that we will have to wear. I don't think either of those change the investment thesis of the project or I think, should be a concern to investors, but it certainly will be the case. And as we bring together our perspective on any delay, we will clarify that point.

Understood. And if I may, what would be the circumstances or is there any thought given to expansion in Las Vegas at some point. The land bank is available. I asked about it periodically, maybe too often.

Oh, it's never too often, David. So yes, we're always thinking about expansion opportunities. And the reality is there's a time and place to consider expansion here and that time in place is based both on the market and the other things that we have going on. So the -- if you look at the last two significant openings in this market, they -- I could argue that they did not grow visitation to Las Vegas and thus, they had to be share takers in order to drive their business. And so that's a particular dynamic that I think you have to pay attention to. And then as it relates to Wynn, specifically, we -- remember, we still do all of our own design and development and construction management. And so there's only so much pick you can put through the python, if you will, and you can only do so many things at once. And so we have to take account of that as well because we have to build, we have to design and build at a given quality level. So we certainly will expand in Las Vegas eventually. But when that is, we'll see. We'll get there when we get there.

Our next caller is Chad Beynon with Macquarie.

Craig, I just wanted to -- going to your comment around design and development, the 432 rooms at Enclave, I know years ago, there was a proposal or kind of drawings around slightly more rooms. Maybe it's kind of the same size, just bigger rooms now. So I just wanted to ask why 25% is the right number given the win share? And then my second question around that is, I just wanted to make sure that, that land parcel, I believe you have two land parcels, one was 7 acres and one was 5. Do you still have that remaining parcel? And if you wanted to build in addition to this, that would be available.

Sure. I'll take the last one first. This is a very small parcel actually that sits on the east side of the property. So when most people think of our land bank at Wynn Palace, they think of the two parcels that are actually on the other side of the building. Those two parcels remain available, and this development is not consuming either of those two parcels. So it's really kind of a tuck-in on a relatively small parcel on the East side. That then leads in -- that's a portion of the answer to your first question, which is why that room counts. And it's because we're dealing with a constrained -- the constrained amount of land on that side. You opened the question by talking about the idea that there had been something floating around out there years earlier, it makes me wonder if you're bugging the Wynn Design and Development offices. But that is true. And in fact, this is a we're bringing those plants back to life. We did have to do some updating around some aesthetic elements, around some technology elements. But that plan has been out there for some time, and now we feel like it's the time to do it.

Okay. Yes, just it's always nice to final presentations on your website. So thanks for still leaving that up from your past. My second question, just around the really strong table drop number in Vegas. I believe that may have been a multiyear quarterly high. If you can just talk about if that was kind of broad-based or driven by Chinese New Year or Super Bowl or just kind of good breadth over the three-month period.

Sure. It was broad-based. We a box did grow more than non-bax, that is true, but it was broad-based. And really, it's the culmination, quite frankly, of everything we've been doing over the course of the past several years. We don't control the total market. We only control our share of it. So everything that we can do to garner incremental share, we will do. That comes down to hosting capabilities and hosting infrastructure. It comes down to machine learning on the offer development side, it comes down to the service levels in the building. It comes down to all the amazing work that Wynn Design and Development does in terms of designing and building and fitting out these new amenities that we've continued to add because, again, at the end of the day, gaming market share, RevPAR, retail sales, those are the prime operating leverage levers in our business. And so everything we do is in support of driving those metrics.

Steve Wieczynski with Stifel.

So Craig, if we stay on play for a second. I guess the simple question is, what does Enclave do or not do to Wynn Macau? And I guess what I'm trying to get here at trying to get your -- look, I understand they're two totally separate type of assets. But when Enclave opens, obviously, Palace might need a little bit more additional gaming capacity. So do you guys think about taking tables away from Macau. I guess the simple question is, is there a cannibalization risk there?

No, there's no cannibalization risk. The reality is that we're thinking about table allocation weekly. And so I wouldn't think about it as cannibalization. It is true that on peak days -- we talked about this on prior calls, on peak events, we do feel our table count. But beyond those peak events, we have plenty of table capacity at Wynn Palace, and we just expanded the Chairman's Club so that we can satisfy our best customers, so I would not think about it as cannibalization of Wynn Macau.

Okay. Got you. And then second question, Craig, I'm not sure you'll really answer this or how much detail you'll get into. But obviously, a pretty big holiday period just wrapped up or essentially wrapping up now in Macau, seems like visitation, I mean what we can tell into the market was really, really healthy over the past couple of days, but any color you can provide on maybe how that visitation translated into GGR from your perspective?

Yes, it was good. Well, first of all, remember, we're not levered to visitation like some others in the market because we play at the very top end of the market. And so it's not about how many, it's about who for our business. It's important to remember that. But it was good. Drop was up year-over-year, and we feel good about the holiday.

James Hardiman with Citi.

So going back to Al Marjan, just remember, at the Analyst Day back in December. So much of the discussion was around the fact that even though you had a high degree of confidence in monetizing your own rooms, there was somewhat of a gating factor based on the pace of other hotel development in Ras Al Khaimah. How are you thinking about that latter piece, given what's going on in the Middle East? Maybe another way to ask that question. Seems like your construction is moving forward. Other projects, are they keeping pace with you? Are there other projects being greenlighted in an environment like this, or are you likely to have to sort of rely on your own capacity in the near term while that catches up even more so than we may have initially expected?

Yes, sure. I'll answer that for -- from two perspectives. The first is, we're starting pilings on the Janu here in a couple of weeks, ourselves. So construction has continued. I can't say it's continued at the exact same pace. And quite honestly, I don't monitor every single construction project weekly over there, like I do ours. So that's kind of point one. I don't think you should underestimate the ability of folks in that market to build and build quickly. But on the other hand, what I would say is, if that incremental room capacity if it was due to come on over the course of '27, '28, '29, and now it's due to come on over the course of '28, '29, '30, it doesn't matter. I mean we're talking about thinking over a 10-year period, 20-year period, and we're thinking about the long arc of that property and the opportunity that, that property can deliver to our shareholders. So we're really not overthinking it, to be honest.

Got it. And then along the lines of maybe overthinking it. If I think about I don't know, potential positives that could come out of this. Certainly, one of the positives of the last couple of years is that there's been nobody else to get approval, right, in the UAE for an additional gaming site do you think this does anything to help or hurt incremental licenses, or could this maybe allow you to be the only selling [ town ] for even longer.

I don't know yet. I mean, look, I could -- as I said in answer to an earlier question, I could build an entire bull case around this, but now is not the time to do that. The reality is that we don't know. And it's a great question. And it's a question, frankly, that we ask internally. So I don't think you're overthinking it. I think you're thinking like management. But I don't have a good answer to it at this point.

[Operator Instructions] Our next caller is Trey Bowers with Wells Fargo.

It looks like promotional intensity in Macau was down nicely year-over-year in the first quarter. Could you just talk about what you guys are seeing in terms of promotional competition and expectations as we progress through the year?

Craig, do you want to take that?

Yes, sure. I can take that. I mean I think overall for us, in particular, I mean, as Craig mentioned, we stay very disciplined on the promotional environment. I don't think we've seen it necessarily change substantively. It's day-to-day combat, as we said, in terms of share and how that oscillates around across the market. But overall, we stay really disciplined to it. We understand right down to the decimal point, kind of what our reinvestment needs to look like, and what we need to do in terms of GGR in order to justify incremental reinvestment. But as you can see from our numbers, we've continued to see disciplined over many, many quarters now. And we continue to do that, and we'll continue to make the right moves when it comes to reinvestment for both the properties over there.

And then this question has been asked a few different ways already, but I'll put it in a slightly different way. I think if you would ask people where the next $1 billion project for when would be I don't know if Macau would have been the first response. So as we think about the Enclave project, is this you guys just what you're now seeing in the market? It just gives you increased confidence a few years from now of what the TAM is, or is it we kind of create the wind level TAM and were capacity constrained. So we need these rooms and 25% extra rooms is just going to kind of bring the TAM with it given our unique product.

Sure. First of all, we've never not believed in the market. We absolutely believe in the market and we believe in the supply/demand dynamics that exist in that market. I've talked a lot about that on prior calls. Beyond that, I would pretty much say what you said in the latter portion of your question. I mean think about it. This -- we have a land bank there, including -- we have a substantial land bank there. And we could have pursued a full-blown resort. We're not doing that. We're pursuing essentially an incremental tower. And so an incremental tower is pretty easy to -- I think pretty easy to wrap your brain around because we have a pre-existing facility in the form of Wynn Palace. We can tack on to that with incremental rooms, and we're running at 99% occupancy. So yes, I don't think we are TAM dependent. Given we're running at 99% occupancy, we are not TAM dependent to fill those rooms by any means. So for us, it's a pretty easy underwrite actually.

Operator, the next question will be our last question.

And that comes from Steven Pizzella with Deutsche Bank.

Craig, in Las Vegas, occupancy was down slightly in the quarter. Do you want that to grow? Or are you happy with ADR gains while these visitation remains challenged to the broader market? And as you start the room remodel. Any early reads that you will be able to push rate more on the other rooms and limit the potential disruption?

Yes, I'll cover the first portion, and then I'll ask Brian to cover what he seeing in terms of rate. Look, we manage rate and occupancy -- we're not chasing ADR as a stand-alone metric. We're managing rate and occupancy to deliver EBITDA. And so if we can maximize EBITDA at a lower occupancy level, which allows us to modulate certain things like restaurant operating hours and other aspects of the business then we'll do that. So it's not pursuit of ADR for the sake of ADR. It's really to drive bottom line results. Brian, any reads on -- I mean, geez, we're obviously getting bookings now in a pretty short window for the period in which we are putting rooms down in Encore, any early read on one rate?

No. Right now, rates are holding. We start actually in another week on this project. It's going to be a 12-month project. So we have a long way to run through this. It's 6 floors of inventory out for the next 12 months. And we'll see very shortly. But right now, we're maintaining rate. We do feel like we'll be able to increase rate at some point over weekend specifically and where we have peak periods compressed by large groups. But right now, we run in the mid-80s as you can see. And so we don't really need that midweek unless we have a lot of compression, but weekends, we'll definitely be able to grab some rate. To what extent we don't know yet but we should see very shortly.

Okay. And then just following up on a real quick. Has your approach to marketing the property changed at all? Do you feel like you might have to do some more incremental marketing?

Not at all. No, I think you -- well, first of all, the the tourism authorities in the UAE are, in particular, Dubai are among the most sophisticated marketers, frankly, I've ever met. And so -- you're going to see them activated, I suspect, you're going to see them activated very quickly after the situation stabilizes. And I don't think the market is lacking for awareness. For us, if you -- again, if you really think about our business, we talked a little bit about this at the Analyst Day, you can divide the business into gaming, non-gaming. The gaming proposition remains as really the only facility of that scale on that side of the planet. And so I don't think that changes one bit. And on the non-gaming side, we always knew we would have to heavily market going into opening and subsequent to openings just to increase brand awareness. So I don't think anything has changed at all.

All right. Thank you for joining the Wynn Resorts Q1 earnings call. We appreciate your interest in the company and look forward to talking with you all again next quarter.

Thank you.

Thank you for participating on today's conference call. You may now disconnect, and have a great rest of your day. Thank you.

Welcome to the Wynn Resorts Fourth Quarter 2025 Earnings Call. [Operator Instructions] This call is being recorded. If you have any objections, you may disconnect at this time.

I will now turn the line over to Julie Cameron-Doe, Chief Financial Officer. Please go ahead.

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Jenny Holaday, Linda Chen and Frederic Luvisutto.

Please note that we've published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true.

I will now turn the call over to Craig Billings.

Good afternoon. And as always, thank you for joining us. I'd like to start today's call by taking a step back and taking a broader multiyear view of our business and talk about how the company is positioned relative to some of the broader forces shaping the world and our target customer base. We are now a little more than a year out from a meaningful milestone, the opening of Wynn Al Marjan Islands. This development is significant for many reasons, but over the long term, its importance as a step forward in our geographic diversification stands out. Especially in the context of an increasingly multipolar world.

Recent actions in geopolitics, currencies and metals reinforce our view that multipolarity is not a transient trend. With it comes meaningful shifts in historical patterns of travel, trade, technology diffusion and capital flows. Increasingly, those patterns are coalescing around a small number of global hubs, notably the U.S., China and portions of the Middle East. We see this in financial markets, and we see it in the travel patterns of our international customers. At the same time, we are approaching a period of significant change driven by technology and artificial intelligence. Anticipation of those changes is already fueling substantial business formation and wealth creation centered again in the U.S., China and portions of the Middle East. That expanding wealth creation will continue to drive demand for what Wynn Resorts has always delivered, exceptional product and service for the world's most discerning customers.

This brings me to 2 related capabilities that position us well for the long term. Our relentless focus on our core customer segment and our proven ability to develop and operate world-class assets in diverse geographies, thereby allowing us to meet the affluent customer wherever they choose to be. With the opening of Wynn Al Marjan Island, we are introducing a significant asset into a new and dynamic market. More broadly, we're moving toward a portfolio where we expect over 55% of our revenues will be generated in non-U.S. dollar-denominated markets from assets we developed and operate each meticulously designed around the most valuable consumers in these key markets.

So as we begin 2026, Wynn Resorts is on track to become one of the most globally diversified companies in our industry. That diversification, combined with our brand, customer focus and proven operating capabilities leaves us exceptionally well positioned for the longer term.

Now turning to the fourth quarter. Wynn Las Vegas delivered another robust quarter with EBITDA of $241 million. It's important to note that the comparable quarter of 2024 benefited from nearly 31% hold, and thus, when normalizing both periods, EBITDA in Q4 2025 was just above the prior year comp. Demand for our product in Las Vegas remained healthy across the board with drop, handle and ADR all up year-on-year. While RevPAR was slightly below last year, the overall results reflect our ability to balance stronger ADRs with modestly lower occupancy in order to optimize the performance of the building. We remain well positioned to do this, given our strong competitive positioning and our customer base. More recently, performance in the first quarter has been encouraging with casino volumes and RevPAR both holding up well.

Looking further out, we feel good about the business in 2026. The visibility that we have into forward demand is largely through our group and convention business, which continues to look strong on pace to grow both room nights and rate relative to 2025.

As I mentioned last quarter, we will begin the Encore Tower remodel in the second quarter and expect to lose about 80,000 room nights in 2026. We expect to recapture some of that impact in rate, but the remodel will nonetheless present a slight headwind for the year.

Turning to Boston. Encore generated $57 million of EBITDAR during the quarter with lower-than-normal table hold masking what was otherwise strong fundamental performance with RevPAR table drop and slot handle all up year-on-year, along with tightly controlled OpEx. More recently, demand in Boston has remained healthy into February, aside from specific days impacted by poor weather.

Shifting to Macau. This quarter was all about significant volume growth, but unusually low hold in both VIP and mass. The team delivered $271 million in EBITDA with low VIP hold costing us a little over $16 million in EBITDA. Volumes in the quarter were strong with VIP turnover up 48% and mass drop up 18%, both year-on-year. While we do not quantify the impact of unusual mass hold, mass hold in the quarter was below our expectations, and Las Vegas, Macau also held higher in the prior year quarter, skewing year-over-year comparability. Momentum in Macau has persisted into the first quarter with volumes in January just above those we saw in Q4. We're also very excited about the upcoming opening of the new Chairman's Club floor at Wynn Palace, a 63,000 square foot addition dedicated to our highest value customers, featuring gaming alongside a suite of bespoke amenities. We expect to be welcoming guests into the space for Chinese New Year.

Looking ahead to the rest of 2026, following sustained double-digit market-wide GGR growth in the back half of 2025, we remain optimistic about the future of Macau. Premium segment continues to lead the market, and that is a segment where we are always well positioned. The expansion of the Chairman's Club at Wynn Palace, along with the refresh of the Wynn Tower rooms at Wynn Macau to further strengthen our ability to capture this demand in 2026 and beyond.

Turning to Wynn Al Marjan Island. I'd like to thank those of you who made the trip to join us for our Investor Day in the UAE in December. We hope the visit provided you with a clearer sense of both the scale of the opportunity and the broader dynamics of the region. During the fourth quarter, we reached a significant construction milestone when we topped out the tower at the 70th floor. Construction continues to progress rapidly with interior fit-out underway in all guest rooms our iconic exterior glass about 80% complete. The opening of Wynn Al Marjan and the free cash flow inflection that it will bring reinforces our confidence that our best days lie ahead.

Before turning the call over to Julie, I'd like to address one final item. As we announced a few weeks ago, Julie will be retiring before the next earnings call. On behalf of the company, I would like to acknowledge her accomplishments as CFO and thank her for her leadership and significant contributions over the past 4 years.

Over to you, Julie.

Thank you, Craig. It's been such an honor to serve as CFO here at Wynn. We're known for our beautiful buildings and 5-star service for what sets this company apart from all the others are its people at all levels and across the globe. It's extremely rare to work somewhere where everyone is bringing their A-game every day but that's exactly how it is at Wynn. It's incredibly special.

So before I get into the quarter, I'd like to thank each and every one of our employees in Vegas, Boston, Macau, Marjan and London for all you do to make win the best in the business.

Turning to the numbers. At Wynn Las Vegas, we generated $240.8 million in adjusted property EBITDA on $688.1 million of operating revenue during the quarter, delivering an EBITDA margin of 35%. Hold positively impacted EBITDA in the quarter by just over $8 million. OpEx, excluding gaming tax per day, was $4.6 million in the quarter, up 4.1% compared to the prior year, largely due to incremental costs related to payroll, higher repair costs and bad debt expense.

Turning to Boston. We generated adjusted property EBITDA of $57 million on revenue of $210.2 million with an EBITDA margin of 27.1%. As Craig mentioned, low hold negatively impacted the quarter's results, while casino volumes and RevPAR were strong. Slot revenues were strong, up over 2%, setting a new record for Boston. We maintained our discipline on the cost side with OpEx per day of $1.18 million, up less than 1% compared to Q4 2024 despite continued labor cost pressures in the market. The Boston team has continued to do a great job of mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience.

Our Macau operations delivered adjusted property EBITDA of $270.9 million in the quarter on $967.7 million of operating revenue, resulting in an EBITDA margin of 28%. Lower-than-normal VIP hold impacted EBITDA by just over $16 million in the quarter. And though we do not report EBITDA normalized for math hold, our math hold in Q4 was about 250 basis points lower than the prior year quarter, impacting our overall EBITDA margin. OpEx, excluding gaming tax is approximately $2.85 million per day in Q4, with the increase from Q4 2024, driven primarily by a full quarter of Gourmet Pavilion related costs, normal cost of living expenses and variable costs driven by healthy business volumes.

In terms of CapEx in Macau, back in Q2, we initiated 2 projects, as Craig mentioned, and expansion of the Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn Tower rooms at Wynn Macau. The impact of those projects on CapEx continues into 2026. For the full year 2026, we expect to spend a total of $400 million to $450 million with several concession-related projects awaiting government approval.

Moving on to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of $4.7 billion as of December 31. This was comprised of $2.9 billion of total cash and available liquidity in Macau and $1.8 billion in the U.S. The combination of strong performance in each of our markets globally with our profitabilities generating over $2.2 billion of adjusted property EBITDA, together with our robust cash position creates a very healthy consolidated net leverage ratio of just over 4.4x. Our strong free cash flow and liquidity profile also allow us to continue returning capital to shareholders.

To that end, the Wynn Resorts Board has approved a quarterly cash dividend of $0.25 per share, payable on March 4, 2026, to stockholders of record as of February 23. Our recurring dividend highlights our focus on and continued commitment to prudently returning capital to shareholders. In terms of CapEx, we spent approximately $171.2 million in the quarter primarily related to the Fairway Villa renovations, Zero Bond and [ Sartans ] in Las Vegas, the new [indiscernible] floor at Wynn Palace, the hotel tower refurbishment at Wynn Macau and normal course maintenance across the business.

In addition to that figure, we contributed $79.2 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution to date to $914.2 million. We also continue to draw on the Marjan construction loan with a drawn amount to date of $769.6 million. We estimate our remaining share of the required equity, including the new [ Genie ] project is approximately $450 million to $550 million.

With that, we will now open up the call to Q&A.

[Operator Instructions] Our first question comes from Dan Politzer with JPMorgan.

Julie, congratulations on the retirement, and thanks for all the help of these past few years. First question on Vegas. Some of your peers have been fairly upbeat on the path for higher-end [ longer ] properties to grow in 2026. And I recognize, Craig, you mentioned a limited booking window and visibility outside of grouping convention as well as the Encore Tower disruption. But I guess as we think about those puts and takes and your level of confidence in this high-end customer, the strength retaining or maintaining here, how do you think about the path to growing in Vegas in 2026?

Sure. It's kind of funny because I feel like we've spent the past few years trying to convince people that we weren't going to decelerate. And we've continued to hold up very, very well. If you look at the drivers in I noted the headwind of the rooms that will be out of service and certainly, I expect that will impact us. Again, we'll try to pick up some of that in rate. But the group business is doing really, really well which, of course, in turn, allows us to yield in the other segments. And so as long as the group pace plays out as we expect it will, strongly expected will, we feel good about our ability to continue to price rooms.

Gaming volumes, you can see gaming volumes in the quarter. And that gives you a sense for how tables and slots are holding up. So we feel good about our ability to perform really, really well in 2026. I mean, by any kind of historical standards, Vegas -- Wynn Las Vegas is absolutely crushing it. So we don't see anything at the moment that would change our view on our ability to continue to do so.

Brian, would you add anything to that?

I'd say so far, our key business indicators are all positive. But as mentioned, the out-of-border rooms will certainly be a challenge in the latter half of the year.

Got it. That makes sense. And then just in terms of the OpEx, Julie, I think you touched on Macau taking a little bit higher. In Vegas, I think there's been a little bit of an increase there, too. Is there any kind of parameters to which you think about the OpEx growth in Vegas as well as Macau for 2026?

Yes. I mean I'll start with Vegas and move on to Macau. So I mean, the team in Vegas remain incredibly disciplined on OpEx, and we did raise our outlook last quarter to $4.3 million to $4.5 million outside of major event periods. We ended up slightly above that range at $4.6 million in Q4. It's a very heavy event period with [ Formula One, Concor ], and New Year and a [ BVI ] convention calendar. We also continue to see normal wage inflation in the union and nonunion areas of the business. But otherwise, we're managing OpEx very tightly.

And in terms of the outlook, we're not changing our expectation for OpEx to be in that $4.3 million to $4.5 million per day range outside of major event period.

If I move on to Macau. Macau obviously, as we said on the call, we've got a full quarter in the -- of the Gourmet Pavilion. And we've had some -- obviously, some cost of living increases going on in there as well. We once again saw the variable impact of higher business volumes in the quarter because we had very strong volumes in the quarter. We raised our OpEx per day expectations last quarter to be in the range of $2.7 million to $2.9 million, and we're aligned with that number.

Our next caller is [ Lizzie Dove ] with Goldman Sachs.

I'll echo my congratulations and thanks to you, Julie. I really appreciate all the help and wish you the best going forward.

Sticking with Vegas, first of all, I guess, similarly kind of on the OpEx side of things. Just thinking about the margins. I think the margins in Vegas are obviously up a lot versus 2019 that you've just seen such incredible strength there and there's been a bit of a give back over the last couple of years, maybe a bit of a return to normal, whatever you want to call it. But just thinking about really over the longer term, not just '26, but how you think about just margin expansion, whether that's possible at some point in Vegas or if there's still a bit of a kind of normalization to go there?

Sure. We've always been pretty explicit about the fact that we don't really manage to margin per se, right? What we do is try to absolutely top tick revenue, which is about taking market share in gaming and driving ADRs, pushing the right customers into the building for retail tenants and then being absolutely judicious about managing OpEx and we're doing both of those things. So we don't really give margin guidance, and we don't look forward in terms of margin. But philosophically, that's really how we approach it. And I think you saw that this quarter.

Got it. And then just on the [ onco ] renovation, it's helpful to call that out. And on my math, at least 80,000 room nights could be maybe $50 million of EBITDA impact, assuming that you don't get any recapturing on the rate, which you did mention. Anything that you could share there on just how you're thinking about it, particularly in the second half once you kind of fully start the renovations and also typical kind of IRR on the longer-term basis of projects like this.

That sounds a little bit high to me. But the way to think about it is we stage and stagger the renovations as we're taking out floors such that they occur in the lowest demand period. So that's one of the ways that we mitigate the impact of those renovations, thereby, allowing us to pick up the highest rate periods. And then I think as you pointed out, we will -- we expect that we will pick up some of that in rate.

Beyond that, it kind of is what it is. We are -- we need to do the renovation and it's important to the building and the brand. Brian, what would you add?

We're starting in mid-May. So as far as impact, it starts in mid-May and will consume about 6 floors as we go through the building. But it's a 12-month process. So this is going to linger into '27 as well.

Yes, that's a good point as well. It's really split between 2 years.

Our next caller is Shaun Kelley with Bank of America.

First of all, Julie, thanks for all of your time and attention and of course, the hospitality on the UAE trip. It was spectacular. So you'll be missed. And if I could, I wanted -- 2 questions on Macau. Maybe first, Craig, if we could lead off with a little bit of color on -- there's concerns both about promotions in the market and competition. And then specifically, we've got some questions around just mix shift between VIP and premium mass, I know you kind of specialize in sort of both these segments. So just kind of wanted your thought on the overall environment. And then again, are you sort of notable shifts between business lines on -- like that may be impacting or changing margins in that segment?

Sure. Thanks, Shaun. Yes, both of your questions kind of lead to margin. I guess, first of all, with respect to margins overall, margins in the quarter were really affected by 3 things: a significant jump in VIP volumes but low hold; unusually low hold in mass, which we mentioned a couple of times in the prepared remarks; and remember, we generally accrue reinvestment on theoretical not actual. So that obviously suppresses margins. And then the incremental OpEx that was previously discussed from coal adjustments and a full quarter of the Gourmet Pavilion.

There wasn't really a -- beyond everything that I mentioned, it wasn't really a fundamental shift in the business. As you know, VIP can be incredibly lumpy. It's just the nature of the business. I wouldn't be proclaiming a market-wide shift or at least a wind shift in the sources of business. With respect to reinvestment, and again, as we've discussed on prior calls, look, it's very short booking window in Macau. And so it's daily hand-to-hand combat, as I've said before, for customers. And we'll adjust reinvestment up or down in any given period. to make sure that we achieve our business goals. I can't say that our quarter was unusually impacted by a significant jump in reinvestment.

Very clear. And then as my follow-up, you mentioned in the prepared remarks as well, some of the excitement around the new Chairman's Club space. So just wondering could you give us a little bit more color and detail there? I think timing sounded like opened by Chinese New Year, but you talked about the kind of scope and scale there, what you've been investing and potential impacts for both 1Q and maybe the full year.

Yes, sure. Thank you for asking about it. We are waiting on, I think, one final government approval that maybe we got it yesterday, [ Ashley ]? So we do expect we'll be open by Chinese New Year. This is a significant -- we did it in record time. It's amazing the development team was able to do it. But this is a significant expansion of the Chairman's Club. So the Chairman's Club, for those of you that aren't aware, is an area in -- within Wynn Palace that is the space that's dedicated to our highest value customers. This expansion actually triples the size of the Chairman's Club to nearly 100,000 square feet. The space includes gaming areas, along with a whole bunch of amenities, including several boutique food and beverage outlets, entertainment areas, a cigar lounge, bar, we -- honestly, we believe it will set a new standard for premium gaming space in Macau, in an area that already feels very, very comfortable to our best customers.

So we feel great about it opening up. The impact on Q1, we'll see. We're hoping to get into Chinese New Year. And obviously, the rest of the year, we don't provide any forward guidance.

Just confirming that we have the approval of opening today.

Thank you. So we're good to go. We will be -- you can remove, you can strike the word expect from the prepared remarks.

Our next caller is Robin Farley with UBS. We'll go to the next caller, John DeCree with CBRE.

I'll pile on to the congratulations and gratitude. It's been a pleasure working with you. Good luck on what's next for you. Maybe to stick with Las Vegas, I kind of ask the kind of consumer question in a couple of different ways. But with lower occupancy, obviously, rate was up, but I think it's impressive gaming volumes are up, you saw higher food and beverage revenue.

And so, Craig, I don't know if you could talk about are you getting more foot traffic in the door from other properties not staying at Wynn? Or is it really just a higher price? Anything you could say about gaming volumes and F&B revenues being up despite a little bit of lower occupancy in the hotel.

Yes. Thank you. First, driving rate over occupancy is an incredibly intentional strategy. It's not a strategy that we're doing because it's being hoisted upon us, right? When we drive rate over occupancy, we can change our restaurant opening hours, we can staff the building differently, and we can really push EBITDA.

On the gaming volume point, it is definitely not the mass customer that's wandering in the door and driving our incremental gaming volumes. We set out, at least 3 years ago now and changed a tremendous number of things in the business. From our hosting strategies to our underlying technology to our -- to aspects of our rewards program and our reinvestment, and that has resulted in a pretty significant shift in market share in our favor. And this was another quarter where you saw the benefit of that.

Brian, anything you would add?

I'd say the ops team continues to pressured on optimizing RevPAR. Focused on getting keeping the restaurants fall and still tightly controlling OpEx. So all of those are key in our future.

Very helpful. I think I've filed 2 questions in there, so I'll step out of queue.

Our next caller is Brandt Montour with Barclays.

Can you guys -- I don't think you guys have talked about this yet, but the sort of the convention calendar for you guys for the year by quarter. Any sort of what should we think about in terms of year-over-year comparisons and what stands out to you when you look out over the year in terms of group?

Brian, do you want to take that?

Sure. I think if you look at some of the citywides and it doesn't impact us as much, but there's some significant change this year over last. Q1 year seems to be higher than last year. Q2 a little bit more challenged because the beginning of April, you've got pass over Easter. And then we layer in pretty nicely. There's a couple of holes in the summer. We have plenty of prospects. The team is doing a great job in filling those holes. And we're pacing nicely right now. So we'll see how it goes.

Okay. Great. And just a follow-up on Macau. You guys already talked about margins and sort of the effect of the VIP mix. But when we look at just the VIP volumes, which are look incredibly strong and you're not the only ones that have seen this, can you just help us understand what's driving that? Is there more -- are you guys doing more direct lending as part of that rolling chip business? Where is sort of the supply and demand things just keep in mind when we trying to understand those trends.

Thank you. We definitely have not changed any component of how we think about credit. So we're not driving volumes on the back of incremental credit. As you know, in VIP a very small number of players can drive a very large amount of turnover. So we have been making very specific investments in our VIP hosting teams and in our VIP player development, and we saw the benefit of that this quarter.

Our next caller is David Katz with Jefferies.

Julie, congrats on all the best. I wanted to just get an updated comment on Las Vegas broadly. And how do we think about the opportunity for your assets to continue to grow, either top line or bottom line? Is it -- and I understand that the refurbs are necessary and helpful. But how do we sort of think about your presence there growing longer term?

Yes. Look, the way I think about it is Vegas, if you look at Vegas over the course of the past, really since the emergence from COVID, Vegas has become a more multifaceted destination than it's ever been. And you know and we've talked about this before, Vegas has a long history of tacking on incremental sources of demand. The raters are an example of that. The sphere is an example of that. And really, the business is more diversified, the total business here in Vegas is more diversified than it's ever been.

That next maturation of the market tends to appeal to customers that are in our customer segment. And during that same period, I would humbly say that we have continued to distance ourselves in the market and provide the best option for those high-value customers. You've seen those high-value customers hold up even as folks, perhaps folks who are in a different income strata have not. And I think that we have been a real beneficiary of that.

So from an organic same-store sales basis, I feel very good about our business and our position in Vegas. I mean, look at the EBITDA numbers and the return on invested capital that we're delivering out of this building. It's tremendous. Then beyond that, of course, we have a pretty significant land bank here. You have to choose the right time and place, right time rather to flex that land bank. If you look at the last 2 openings in the market, they have had to be share takers because the market visitation do not change with those 2 openings. But over the very longer term, particularly as again, as I was saying in my prepared remarks, you have incremental wealth creation from everything that's going on in technology and AI.

We think the demand for our products will allow us to take advantage of that expansion. It's just a question of when. So again, I don't really think well candidly. I don't really think will 2026 be greater than 2025. I think where will we be in 2030 and 2032, and what will our business look like. And I feel very good about.

Our next caller is Chad Beynon with Macquarie.

Julie, congrats on all your accomplishments as well. I wanted to ask unfortunately, maybe more of a near-term question, just around 2026. I know a lot of the lodging companies and event centers are talking about the World Cup impact. I know it's making its way through Boston for a couple of weeks and then obviously in Los Angeles and other cities where international customers could be here and maybe frequent in your properties.

I guess my question is, do you think there could be an impact or maybe a spark that we haven't seen from maybe some international customers coming back into the market and then frequenting your properties?

Sure. It's a good question. In Boston, for sure, the direct impact there, I would expect would be on ADR. In Vegas, we have an entire strategy that we have developed to take advantage of the proximity of the World Cup. That's a very targeted strategy because we don't need kind of the mass volume to make their way here. And so certainly, we will take advantage of that and make sure that we are able to ghost on the event, if you will.

Does it impact how we think about 2026? Maybe on the margin, but I don't think I'd be calling out -- calling it out as a specific driver of the year.

Okay. And then as it relates to AI, you talked about just the wealth effect that could improve your customers' wealth over the next couple of years and then drive business to your properties. But what about internally in terms of tech that you guys are using either in-house or with certain vendors to help whether it's search or content kind of product on the floor. Do you think we will see an improvement in '26 versus '25 that could either help on the revenue or margin side?

Great question. How much time do you have left on the call? Okay. So first of all, we're already seeing the effect of that wealth creation. We already have customers that are spending time with us that have had wealth created through everything that's going on with artificial intelligence so this isn't something that I'm just kind of forecasting out of that. I mean we can see it. And it's not -- and in the long run, I don't anticipate that we'll just be here. I anticipate that will be in Wynn Al Marjan Island where you have the UAV being extremely aggressive in terms of AI infrastructure and AI model development. And so I think that, that will benefit us there as well. And I think it will benefit us in Macau as a new generation of wealth is created in China.

On the internal side, our approach to date, we worked under the presumption initially that anything that was focused on OpEx efficiency would be packaged up and sold to us because that's where everybody was going to head first. And that has kind of proven to be the case. I think with respect to that, and look, anybody who watches CNBC, particularly today, is going to tell you that there is a general feeling that we are finally at a tipping point with respect to the models. And I believe that to be true.

And so I think from an OpEx efficiency perspective, you will start to see gains over the course of the next several years. What I think is underappreciated in the enterprise is the amount of plumbing that goes into how all the applications that we utilize, the databases that we utilize are connected. And so that plumbing doesn't change overnight, and so that takes time. But I'm certain that, that will happen.

So if we weren't focused on the OpEx side, what were we focused on? We were focused really on customer delight. And so that really comes down to personalization where we've rolled out several things. I won't get into the details on this call for competitive reasons, but where we've rolled out several things that have had a meaningful impact, we believe, on retention. We focused on improving the underlying machine learning and modeling for our reinvestment. That's true here and in Macau. And that has certainly had an impact. I believe you can see that showing up in gaming volumes. So it's a little bit of everything.

And then the last piece I would say, I think if you're watching the markets, you may have seen [ TripAdvisor ] was trading off heavily today citing the impact of what's called GEO, Generative Engine optimization on a business that is very SEO, Search Engine Optimization dependent. So we've been on that for probably about a year now, making sure that our discoverability and that's from a hotel sales perspective, primarily food and beverage as well, but mostly hotel sales, that our discoverability would be absolutely top-notch as GEO starts to take over SEO.

So there's really -- honestly, there's hundred things that will ultimately come out of all of this. I'm not going to put us in a position where we're talking about impact on -- well, I'll never put us in a position where we're talking about impact on margins, but it certainly will show up. rate.

Our next caller is Steven Wieczynski with Stifel.

Congrats, Julie, hope you have a great retirement. Not sure if I missed this or not, Craig or Julie, but if we think about Macau margins in the fourth quarter on a more normalized basis, meaning hold normal VIP, mass OpEx is as normalized. Based on our quick math, is it safe to say those margins would have been pretty close to the 31.5% margin that was posted in the fourth quarter of '24. Am I kind of thinking about that the right way?

You're a little above where we would put them, we would probably put them somewhere around 30%.

Okay. And then I'm not sure how much you'll say Craig or not, given that we're kind of in the first quarter, but Chinese New Year obviously starting up in the next couple of days, would you give any kind of high-level view on kind of where you guys are booked at this point? Or what do you think demand is going to look like?

Yes, booking pace is good. We feel very good about where we are. And with the opening of Chairman's Club at Palace, we feel like we have something new in [ China ] that will delight our best customers. So we're feeling good about Chinese New Year. We do and we called this out, I think, kind of ad nauseam now. But we do run into capacity constraints around these peak periods based on table count, that doesn't affect our best customers, obviously. But on the more base mass side, we do. But we feel great.

Our next caller is [ Trey Bowers ] with Wells Fargo.

Great to see you on trip a couple of months ago. I guess I'll be the first to ask Al Marjan question. But as we progress through the year, could you guys just give us any kind of signpost to think about, be it even when the rooms will go on sale as we look towards just strength of the opening?

And then a second part of that question would be one question I get is just it feels like the only hindrance in that market is supply constrained. And can you just give us a sense for when you look around the property how long it's going to take for that area to kind of be fully built out? And how necessary that is to hit some of the targets that you guys are looking for?

Sure. The signpost along the way, we'll release them in press releases. I mean we put out construction updates every now and again, and then we stated we update folks on this call. With respect to when rooms will go on sale, that's the subject of discussion right now. But if I had to spin wallet at this point, it would be late Q3, early Q4. You are correct that it would be great to have a bunch of incremental room capacity. We are not dependent on that incremental room capacity to meet our base case. I want to be very, very clear about that.

What we said when we were in the UAE was that meeting the outperformance numbers or beyond would certainly require incremental hotel capacity. Those of you that were there saw that construction happening. So the construction is absolutely happening. I don't expect a material tick in the room count prior to our opening. I mean we are about a year and a few months out at this point. But shortly thereafter, I would expect incremental rooms to come online. Our strategy to deal with that in the short run and ultimately, the long run is to have a very, very strong transportation program and effectively utilize adjacent cities as a source of day-to-day visitation. And so we're being very, very thoughtful on the transportation side.

So just to reiterate, base case unaffected but we certainly would like incremental hotel rooms to come up and they are coming up.

Great. And I guess just a quick follow-up just to ask about my town. We saw in some of the trade rags that maybe a hotel expansion here in Boston was back on track. I didn't see anything in the slide deck and referenced anything planned for Boston, but could just you guys walk through any expectations around anything you want to do in this market.

Sure. Sure. Thank you for that. Yes, there was a bit of misreporting actually in a number of those articles. So let me clarify. We're not developing hotels on our balance sheet. Rather, we own some 16 acres of land adjacent to Encore, and we are contemplating providing a portion of that land under what is effectively a land lease. So to that end, we entered into an MOU with the [ City of Effort ] outlining certain things that we would each do to facilitate that development. And really, this is part of a broader vision for the neighborhood, including a potential rail stop and, of course, a possible major league soccer stadium very, very close to Encore Boston Harbor.

So to be clear, we're not developing those hotels. We would be a land a land lease lessor. The hotels themselves would drive benefit to Encore Boston Harbor and where we would be excited about that. But that's what we're up to.

Our next caller is Ben Chaiken with Mizuho.

I just wanted to echo the previous comments. Maybe just a follow-up on UAE. Recognizing you've provided us with a high-level financial framework, can you give us your latest thoughts on the mix of F&B entertainment versus gaming? And then some of the swing factors as you see it today?

Sure. I mean, we've outlined our expectations for the market in a base low and upside case. Beyond that, obviously, on the gaming side, the market is extremely supply constrained. We're kind of it for quite some time. I think we've -- we've said in the past, we expect that market to have many attributes that are consistent with Las Vegas, which is very, very strong non-gaming demand. So the balance there really is how we utilize our room base.

Vegas, where the vast majority of our revenue is non-gaming. Macau, where the vast majority of our revenue is gaming, I wouldn't expect it to be at either of those pools, but it will really come down to the tension of how we utilize those rooms. So you'll see in the numbers that we provided, very healthy gaming revenues, representing the productivity of the casino and also the supply-constrained nature of the market, but you'll also see a healthy balance of non-gaming revenues reflecting substantial ADRs and a substantial willingness to spend in that market for food and beverage.

Our next caller is Steve Pizzella with Deutsche Bank.

I also wanted to say congrats to Julie. Maybe just following up on Al Marjan, as we continue to get closer to the opening, can you share how your database continues to shape up and the efforts to build the pipeline to get the right people to the property when it opens?

Sure. On the hosting side, we have -- we started building our hosting infrastructure, at least a year ago, a year and change ago when we started bringing on very senior folks with regional experience. So the kind of one-to-one relationship marketing has been well underway. And I would say that general awareness among high-value players regionally is extremely high. I mean we've been getting approached by people in pretty far flung places asking when the property will be open.

On the mass market side, we have begun primarily through digital, building a database and creating awareness. We are communicating with those folks regularly in anticipation of the opening. And I think that will be additive. I honestly -- so we're doing a lot, long story short to build the database. But the awareness among people who are both gaming customers and non-gaming customers in the market, the unaided awareness is actually quite high. So I don't want to be flippant about it and say, we don't need to build a database because we absolutely positively do. But we're feeling pretty good about people showing up the day we open the doors.

Operator, the next question will be the last.

Robin Farley with UBS.

Great. Hopefully, you guys can hear me. I wanted to circle back to your comment about Macau and reinvestment. I know you said there wasn't a significant jump. And I think that was in your reinvestment spend. Can you talk a little bit more broadly about what you're seeing in the environment. Others are talking about how much more competitive it's gotten. Are you seeing that stabilize in terms of what others are doing, even if your own reinvestment rate has not had a jump?

Sure. mean I won't specifically comment on others or perception of others reinvestment rates. I would say that there has been at least one operator in the market who has publicly stated that they are driving incremental reinvestment. I think you naturally get responses to that. I think you're really talking about a band market-wide. You're talking about a band of 200 basis points in reinvestment when you talk about reinvestment moving up and down.

So as we have said before, I don't view the market as being in some all-out promotional war by any means. But like I said in my prepared or in a response actually to another question, it's a short booking window, and it's a competitive market, and that's the way it is. So we -- all I can really do is speak to what we do, and that is move reinvestment up, down, do what we need to do in order to drive EBITDA positive incremental visits.

And lastly, as I mentioned on prior calls, we have a 2 basis point day-by-day view of what our reinvestment is and so we are able to modulate it on the fly, far better than we ever have, which really relates to some human capital and technology improvements that we made several years ago so that we can really bring it up, bring it down, bring it up, bring it down and do whatever we need to do at any given moment.

Okay. And then just a quick follow-up on Vegas. Craig, in your comments when you were sort of talking longer term about demand and growth in 2030 and all of that. You kind of wrapped it up by saying you were making a point that you think about growth longer term. But you made a comment about '26 maybe not being greater than 2025. And I didn't know if that was just like a theoretical making the point that you weren't focused near term? Or -- and I know you don't guide, but is the expectation given the room remodel disruption, it would be reasonable to think that EBITDA would be down year-over-year. Is that sort of a takeaway that we should have from that comment?

My comment was purely theoretical. I'm simply pointing out that look, we don't -- this is true in Macau. This is true in Vegas, right? We don't control the market. We control our share of it. And so everything we do every day is designed to be a share taker, hold share and be a share taker. That manifests itself in 2 ways: gaming volumes and ADR. And by all measures, I think we've shown that we are very successful in that strategy. And so opining on '26 for us is actually a pining on the market. And I'm not going to opine on the market. In fact, you all spend a lot more time analyzing market level trends, quite frankly, than we do per se because we are thinking about how to deliver the absolute best product so that we can top tick our own EBITDA.

So -- but my comment was purely designed to illustrate the fact that we're thinking about an arc that is 5 to 7 years out.

Well, thank you for joining the Wynn Resorts Q4 earnings call, and thank you for all the kind words. We appreciate your interest in the company, and the team looks forward to talking to you again next quarter.

Thank you, everybody.

Thank you for participating on today's conference call. You may now disconnect. And have a nice rest of your day.

Welcome to the Wynn Resorts Third Quarter 2025 Earnings Call. [Operator Instructions] This call is being recorded. [Operator Instructions]

I will now turn the line over to Julie Cameron-Doe, Chief Financial Officer. Please go ahead.

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Jenny Holaday, Linda Chen and Frederic Luvisutto.

Please note that we've published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true.

I will now turn the call over to Craig Billings.

Thanks, Julie. Good afternoon. And as always, thank you for joining us. I'll jump right into the quarter, and I'll kick off here in base. Wynn Las Vegas continued to see notable gaming market share gains in the quarter, driven by our incredible team and market-leading product and service, resulting in EBITDA growth on a hold-adjusted basis of 3% to $211 million against a difficult comp.

Demand in the casino was healthy throughout the quarter with solid increases in both drop and handle, leading to casino revenues that were up 10%. Hotel revenue was flat at $187 million, demonstrating that our plan to accept slightly lower occupancy in order to preserve ADR and maximize EBITDA paid off during the quarter. In fact, in August, the property set an all-time monthly EBITDA record.

We also look forward to completing the renovation of the Fairway Villas by the end of this quarter and to the opening of [indiscernible] Apologies. Sorry for that. Wynn Las Vegas continued to see notable gaming market share gains in the quarter, driven by our incredible team and market-leading products and service, as I mentioned. More recently, business in the fourth quarter has seen continued momentum with drop and handle both up versus the same prior period last year. We've also seen notable growth in REVPAR and strong retail sales.

So with the fourth quarter off to a strong start, we are now turning our attention to F1. You can look at our published room rates for the event and see that we are once again pricing at a significant premium to the market.

Looking further out, our group and convention business looks strong heading into 2026 on pace to grow both room nights and rate over 2025. I do want to note that as we begin the Encore Tower remodel in the spring, we will lose about 80,000 room nights in 2026. We will attempt to pick up some of that in rate, but the remodel will present a slight headwind for 2026. Importantly, we continue to invest in our market-leading assets here in Las Vegas. And ultimately, while macroeconomic and geopolitical uncertainty remain a consideration, we remain positive on the outlook for our business in Las Vegas.

Turning to Boston. We generated $58 million in EBITDAR. In terms of fundamentals, the business at Encore Boston Harbor remains solid with slot revenues growing over 5% year-on-year and OpEx tightly controlled. More recently, demand in Boston has remained healthy in October with both drop and handle above last year.

Macau also delivered very strong results in the quarter, which were further aided by higher-than-normal VIP hold. The business generated $308 million in EBITDAR, including $23 million of VIP hold benefits. Mass volumes were particularly strong, up 15% year-on-year despite the weather disruption near the end of the quarter. The cadence of Golden Week was a bit unusual this year and that we saw heavier volumes towards the tail end of the holiday and after the holiday period. Beyond Golden Week, volume metrics in the quarter have been strong with turnover and mass drop both running well ahead of last year. With sustained double-digit market-wide growth in GGR, we continue to be optimistic about the future of Macau.

The premium segment continues to lead the market in Macau. Last quarter, we discussed 2 new projects and expansion of The Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn tower rooms at Wynn Macau to ensure we continue to take advantage of this ongoing demand. Both projects are moving along very quickly. The Chairman's Club expansion should be complete ahead of Chinese New Year, and we are already completing the initial floors of the Wynn tower room renovation now. While we expect some minor disruption into year-end from these projects, once complete, they will further elevate our offerings at both properties.

Wynn Al Marjan Island continues to progress rapidly, and we look forward to welcoming many of you to the site in less than a month. We're pouring the final 2 floors now and are on track to top out the tower ahead of our analyst event in December. We are also pleased to announce our first development on the Marjan Land Bay adjacent to Wynn Marjan, the Al Marjan Island by [ Oman ] Group. Oman team are world class, and we're delighted to have them as a neighbor.

From a structuring perspective, our JV, the same JV that owns enlarge on, will own the property and the Oman team will manage the asset. Given the recent success of condo sales in the UAE in general and, in particular, we anticipate our portion of the equity check for the project will be quite small, about $25 million to $50 million. Beyond the stand-alone merits of the transaction, we also expect Janus high-quality customers will be additive to Wynn Al Marjan Island.

With the Marjan Land Bank, we have significant additional long-term development opportunities in the UAE. You can see more about this initial development in our quarterly earnings presentation. We remain on track for our targeted opening date of Wynn Al Marjan Island and look forward to showcasing what we believe is the most compelling development opportunity in the industry.

With no competing operations announced to date, when Wynn Al Marjan Island will be the only integrated resort in what many analysts are predicting will be a $5 billion-plus GGR market. Our future continues to be bright. The opening of Wynn Al Marjan Island and the free cash flow inflection that it will bring gives us confidence that our best days lie ahead.

I'll now hand it over to Julie to run through some additional details on the quarter.

Thank you, Craig. At Wynn Las Vegas, we generated $203.4 million in adjusted property EBITDAR of $621 million of operating revenue during the quarter, delivering an EBITDA margin of 32.8%. Unfavorable hold negatively impacted EBITDA in the quarter by just under $8 million. OpEx excluding gaming tax per day was $4.3 million in the quarter, up 3.1% compared to the prior year due to a bad debt swing and onetime expenses in repairs and maintenance Otherwise, there were normal cause ebbs and flows in OpEx.

Turning to Boston. We generated adjusted property EBITDA of $58.4 million on revenue of $211.8 million with an EBITDA margin of 27.6%. Slot revenues were very strong, up 5% and set a new record for Boston. We maintained our discipline on the cost side with OpEx per day of $1.16 million up 1.9% compared to Q3 2024 despite continued labor cost pressures in that market. The Boston team has continued to do a great job of mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience.

Our Macau operations delivered adjusted property EBITDA of $308.3 million in the quarter on $1 billion of operating revenue resulting in an EBITDA margin of 30.8%. Higher than normal VIP hold impacted EBITDA by a little under $23 million in the quarter. OpEx excluding gaming tax, was approximately $2.75 million per day in Q3, up 7.6% year-on-year with the increase driven primarily by the Gourmet Pavilion and normal cost of living expenses as we called out last quarter. This quarter, we also saw the variable impact of higher business volumes and about $2.5 million of typhoon-related OpEx.

In terms of CapEx in Macau, last quarter, we initiated 2 projects, as Craig mentioned, and expansion of The Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn tower rooms at Wynn Macau. And together with other ongoing CapEx projects, we continue to expect to spend $200 million to $250 million in total for 2025.

Moving on to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of $4.6 billion as of September 30. This was comprised of $2.8 billion of total cash and available liquidity in Macau and $1.7 billion in the U.S. The combination of strong performance in each of our markets globally with our properties generating just under $2.3 billion of LTM adjusted property EBITDA, together with our robust cash position creates a very healthy consolidated net leverage ratio of just over 4.3x. Our strong free cash flow and liquidity profile also allow us to continue returning capital to shareholders in both Macau and the U.S.

To that end, Wynn Macau paid out approximately $125 million in dividends in Q3 after paying a similar amount in Q2. In addition, the Wynn Resorts Board has approved a quarterly cash dividend of $0.25 per share payable on November 26, 2025, to stockholders of record as of November 17. Our recurring dividend highlights our focus on and continued commitment to prudently returning capital to shareholders.

In terms of CapEx, we spent approximately $164 million in the quarter, primarily related to the Fairway Villas renovations and food and beverage enhancements in Las Vegas, concession-related CapEx in Macau and normal course maintenance across the business. In addition to that figure, we contributed $93.9 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution to date to $835 million. We also continued to draw on the Marjan construction loan with a drawn amount to date of $583.7 million. We estimate our remaining share of the required equity, including the new project is approximately $525 million to $625 million.

With that, we will now open up the call to Q&A.

[Operator Instructions] Our first question comes from Dan Politzer with JPMorgan.

First, in Las Vegas, another strong quarter. Can you talk about what you're seeing there versus a few months ago? I had you guys have been taking share. It sounds like the fourth quarter is trending well. But do you feel like the environment has improved as we kind of moved out of the summer and you filled in that group calendar? And then as you look out to '26, what is your expectation there for growth given that group is pacing higher?

Sure. I'll start, and then I'll ask Brian to comment as well. I think the summer activity or the summer business environment has been well publicized, maybe to the extreme here in Las Vegas. And we saw our business as we were going into the summer. We saw components of the business that we felt like we needed to react to. We reacted to that, and we talked about a little bit about this on the last call, we reacted to that by really focusing on rate and not on occupancy.

And then, of course, we can kind of staff the building accordingly and really make sure that we're driving EBITDA, and we did that. On the last call, I believe we mentioned that we were seeing things start to improve more broadly in Vegas. And certainly, that was the case. And we also knew that by the time we got to October, we'd be in pretty good shape for the reasons that you just described with respect to group. So I don't think there's anything new there. I think it's kind of as we talked about and as is reflected in the results, inclusive of my commentary about how things look in October. 2026, the primary indicator is group, and Brian will talk a little bit about that.

Brian, what did I miss?

I think it comes down to 3 groups that are really focused right now and really focused on Q3 and they're focusing forward, our revenue team, our sales team and our casino marketing team. In Q3, we were squarely focused on casino marketing as well as yielding ADR, as Craig mentioned, over peaks and on weekends to really take advantage of the compression. The team did an amazing job, resulting in a record August, delivering really nice great results for the quarter. I think Q3 was a lot better quarter than we initially saw at the beginning of the year.

And Wynn respect to Group, as stated, we're pacing ahead in 2016 in both rate and room nights. The team is now focused on really plugging the last available holes over the summer, which is typical in part for the course. So really proud of what the team has done with their efforts. And as we move forward, we continue to focus on peak periods and weekends where we can take rate where we can.

Got it. And then just turning to the UAE. You guys laid out a little bit over a year ago, a base case -- a low case base case and a high case scenario for EBITDAR there. And I think the high case was $460 million. So I guess, look, the property certainly still is a way from opening, but can you lay out or remind us what are kind of the puts and takes between the base case and the low case and the high-end scenario? And obviously, given that it doesn't seem like there's competitors there, where does that maybe put you right now?

Yes. Look, the there's a lot of puts and takes from the base case to the upside case, really across those cases. But the number one, by an order of magnitude is GGR. And so really, it comes down to how large the market will be and ultimately what our share of the market will be. As you rightly pointed out, our share of the market early on should be 100%. So we're not yet ready to revisit the numbers that we put out in our Investor Day. But you've seen sell-side estimates for the market as high as $8 billion. And so even if the market is a fraction of that size, the absence of near-term competition probably introduces some conservatism into our base case, but it's a greenfield market. And so what we really are focused on right now is getting open with the absolute best product that we can.

Our next caller is John DeCree with CBRE.

Craig, maybe to stick with Las Vegas a little bit. You talked about some of the stuff that happened over the summer. But one of those things that came up with the social media backlash on pricing and you obviously cater to the highest end of the market. But curious your views on that impact in terms of visitation to Las Vegas as a whole. And specifically, although you kind of luxury end of the market, have you seen any pushback on pricing? You obviously had a great quarter in holding rate, but curious if you've seen any change?

I'll take the second. Thank you for those questions. I'll take the second one first, we have not. And then on the first one, I've been getting this question a lot. And Wynn Las Vegas is not necessarily built for those visiting Las Vegas on a tight budget. Our customer generally isn't the customer who focuses on cost alone. But they are the type of customer who is really unrelenting when it comes to value for their dollars, right? Their expectation of that perceived value could not be higher.

A small example, by the way, I had a patron e-mail me several weeks ago about the difficulty of pealing the complementary oranges in our spa. We love that. We love feedback like that. No matter how small. And while we're on apologetic about premium pricing, we don't ambush patrons with unexpected charges. So contrary to what you might expect, our mini bar prices are a fraction of some others in the market. We held out as long as we possibly could in charging for parking and really only began to do so when we were at risk of becoming the neighborhood parking lot, even now hotel guests parks free, by the way.

Yes, our customer pays a premium room rate, but we don't want them to feel nickel and dimes. That's actually contrary to creating high perceived value. So because of that, we haven't seen that pushback on pricing that the risk that others in the market might have or at least we've seen on social media.

So lastly, while the current narrative is when did Las Vegas get so expensive Las Vegas is actually chock-full of low price options and values. It really is. But historically, it has also been a town where 1 could escape one's worries for 3 days and experience world-class service in beautiful environments. In other words, a town of really high perceived value. Any erosion of that perceived value will manifest itself in a mantra against the cost of the experience itself. But read through the underlying messages and you will see it much more as being about the value for dollar and not the dollar itself per se. And that's just not us.

So no, we haven't seen that pushback. If rates compress 50% in Las Vegas tomorrow, would we see that? Would we feel that? Sure, we would. But we will always be at a pricing premium and the reason is because we deliver a whole lot of value.

That's helpful, Craig. I appreciate those comments. And I too struggled with those oranges, so I'm glad you guys are going to think about it.

Well, they're easier to peel.

Good. Good. They're already pre-pealed I'm sure. We'll look forward to that. If I could ask a question on kind of the inverse of that, we here expect visitation to pick back up in Las Vegas more broadly, especially with the convention calendar picking up. And so your business is a bit uncorrelated, but should you also expect to see a little bit of uplift as visitation to the city comes back as a whole? Or would you say you're kind of just marching to the beat of your own drum right now in terms of where you're positioned in the market? I guess is there more upside as visitation recovers for you in Las Vegas?

Yes, of course. You really see it -- let's talk about 3 segments, right, high-end gaming, mass gaming and ADR. Mass gaming and ADR are, of course, levered to visitation because they're both either demand-driven or correlate to the number of people that are coming to the doors every day. High-end gaming, very different, right? That's about the equity markets, it's about host of customer relationships, one-to-one selling. It's the service -- the specific service and the building, that particular customer and what they're doing. So there are certainly aspects of our business that will benefit from incremental visitation to Las Vegas, most notably the rate that we charge for hotel rooms and the activity on our gaming floor outside of the high living rooms.

Our next caller is Stephen Grambling with Morgan Stanley.

I don't know if you specifically quantified this, but would love to hear any additional color you could give on how to think about the disruption impact in Las Vegas, but also how to think about perhaps the return on some of these projects as we look beyond 2026, are some of these generally maintenance? Or do you think that there will be incremental EBITDA from a lot of these?

Sure. Thanks. We have not quantified the impact with respect to the Encore Tower remodel, primarily because what we will attempt to do is pick it up in rate. As we start to commence that renovation, we'll talk to you more about what we think the actual impact is. Some of the CapEx that we talk about is normal course maintenance. So the Encore rooms have redone in a number of years, and we need to do that in order to continue to drive rate and continue to be competitive and continue to deliver on our brand promise.

The other changes, particularly in food and beverage that we're making are absolutely ROI-driven projects. Even when we redo a room like we just redid -- or we just did with [indiscernible] and not too long ago we did with Misumi. The incremental check average that we drive, the incremental covers that we drive are absolutely EBITDA accretive. So it really is a bit of a mixed bag, but -- if you look at our ADRs in terms of maintenance versus growth, but if you look at the ADRs that we've been delivering, I think you can see why it's important that we invest in the hotel.

Maybe turning to Macau very quickly. What are you seeing in terms of the competitive dynamics, particularly as the quarter progressed given there's some chatter for some of your peers that there might be a little bit more promotions going on? And how do you generally think about margins going forward as you think about either maintaining price integrity or having to competitively respond?

Sure. We thank you. We think about it day to day. So it's -- as I've said on probably in the last 8 calls, it's hand-to-hand combat in Macau. That's just the reality of the market. I haven't -- we haven't seen a notable uptick in promotional material notable uptick in promotional activity. But we have a really clear view, as I've said before, down to the basis point of how much incremental GGR market share we need in order to justify and fade an incremental percentage point of reinvestment. So we're monitoring that closely in real time.

In terms of the specific impact that you could see on margins, as we have also said before, we view margin as an outcome of aggressively driving revenues profitably reinvesting customers and diligently managing costs. So we don't manage to a specific margin per se, but what we're constantly doing is looking at our reinvestment levels relative to revenue, not market share revenue.

Our next caller is Robin Farley with UBS.

Going back to the UAE for a moment, maybe I'll try to ask the question in a different way. I don't know if I'll get any more of an answer. But what were you factoring into your base case when you originally laid it out? I think you mentioned the potential for 2 other competitors to be in the market by 2029. How should we think about what you were kind of factoring in for that competition in terms of impact?

Sure, Robin. You're right. We were factoring in 2 incremental competitors and a market that I believe, if I'm remembering from the presentation, was $3 billion to $5 billion of GGR. We always tend to operate at a fair share premium. So we did assume a share of that. In fact, you could probably show that GGR -- you can probably take a look at the GGR that we showed and impute our fair share assumptions based on a market of $3 billion to $5 billion. And as I mentioned before, with no announced competition that we're aware of in the market thus far, there probably is some conservatism in those estimates.

And is the market size, some of your assumptions had assumed that some of the market would be driven by having those 2 other competitors? Or do you think the market size would still be the same?

Plus or minus, sure. We did not make an assumption with respect to the draw of incremental -- of any incremental competitors. What we really look at is a tremendous amount of airlift a very robust locals market, a very, very high GDP per capita. Those are the things that we look at when assessing the size of the market. It's a very small market geographically. It's very tightly coupled. It's about 50 minutes from Dubai to the property. So those are all with great road infrastructure. So those are all the things that we look at when assessing market size.

If I could do one quick follow-up on Vegas. Just for group for 2026. I wonder if you could give us a sense of group pace after Q1, just to get a sense of sort of underlying and after the benefit, obviously, rotating in, just how that looks past Q1?

We don't break down our group forecast on public calls by quarter, but it's safe to say that we feel good about it.

Our next call is Brandt Montour with Barclays.

So in Las Vegas, curious that REVPAR or that REVPAR growth that you guys saw so far in the fourth quarter. Is that all from mix and rate compression from group? Or are you actually seeing some recovery in leisure occupancy?

Sure. I'll start, and then I'll pass it to Brian. You mentioned the rate compression for group. And obviously, that helps in terms of pricing group rooms, obviously, are contracted multiple years out and thus tend to carry a lower ADR than the prevailing ADR. So it's really a function of health across the board. But absolutely, group compression does help.

Brian, what would you add?

I'd say the same. We've really seen a great start in October. Team has done a great job yielding rates over peak demands. We have a little softness before and after F1, which is typical and the teams were already reacted and put plans in place to prop that up. So pacing quite nicely in 4, right, and we feel good about where we're headed.

Great. And then a quick question on UAE and you probably don't want to jump any guns here on what you want to say for the game plan there. But for a property like this, when do you start to go out and build excitement and buzz with some of the bigger global players in your database now or in the database that you want to have and sort of -- is that sort of a next year, later next year thing? And then any insight on what you've learned so far from the acquisition in London to that extent.

Sure. Great questions. The entire management -- the entire senior management team is already on board in the UAE. That includes key marketing leaders. So you should assume, as is the case when you're opening a property in a new region like this, that one-to-one marketing and player engagement has been going on for actually quite some time. Mass marketing and mass communication you obviously roll out much, much closer to the actual opening because to create awareness at this point, you're so far from consideration and conversion that it really doesn't do you much good. So we are actively marketing to the folks that we will want in the building on a one-to-one basis, and you should expect to see a lot more on the mass marketing side as 2026 progresses.

Mayfair has been very interesting, extremely high overlap between the Mayfair database and the database that we expect in that part of the world. We've learned a whole lot around game preference, reinvestment expectations competing the competitive dynamics in other parts of that region, and it's really been very, very instructive to what we're going to do in margin.

Our next caller is David Katz with Jefferies.

I wanted to talk about Macau, we're taking some share seems to be the high-level observation. The hold percentage was high. We've seen October GGR numbers come across in the mid-teens growth percentage. I'd love your -- just your kind of state of the state. What's going on in that market? What's driving that growth? Is it sort of mainland fundamental dynamics in some way? Whatever you can share would be helpful.

Sure. Thanks, David. Yes, you're right. The market has been pretty good, and it's great to see you usually have a very thoughtful and very strategic question on these calls. So I'm going to answer you in a somewhat philosophical and strategic way that may not satisfy you, by the way.

There's a lot of cross currency in China right now. And I think trying to pin recent growth on any 1, 2 or 3, say, particular factors is kind of a -- I think -- what's important is to understand that a lot of folks haven't actually been to China since before COVID. And the China today is not the China of 2018. China is a giant complex economy. And honestly, the country is the pace setter in a whole bunch of areas, advanced manufacturing EVs, robotics. So it's really not all that different in the U.S. where you can have certain consumer segments performing really well, while others are performing more modestly, it's a really dynamic place.

And the consumer is evolving, too. And frankly, you can see it everywhere in Macau. Sometimes for the better in their affinity for top quality experiences, for example, and frankly, sometimes for the worst. GGR per visitor, for example, in Macau, when you have these visitation searches. Chinese consumer tastes are advancing at a rapid cliff. And it's -- it will create changes in gaming, food and beverage, retail preferences. So it's an exciting place to be, and we're very long-term bullish, but I think trying to pin ebbs and flows in the market to 1 particular factor. It's just -- it's like trying to pin ebbs and flows in Las Vegas to any one particular factor. It's not the case. So again, we're delighted with how the market is doing, and we're very, very mid- and long-term bullish on Macau.

Appreciate all that. Just 1 follow-up to that end. One of the observations we're seeing here in the United States is a bit of a bifurcation where the high end seems to be doing better than the low end. Is that unrelated, but is that a similar dynamic to what you're seeing out of China?

Sure. I think you see that. It's a premium bled market. It's a premium mass led market, and I think that is absolutely the case. You also have a shifting set of a shifting industrial policy in China that is having certain effects on real estate, certain effects on other forms of industry and value creation, and that's creating new pockets of wealth. It's just a very, very dynamic place. And -- but your general observation is, I think, true, and that's good for us because that's the end of the market that we focus on.

Our next caller is Chad Beynon with Macquarie.

I wanted to go back to Vegas. So occupancy, as we can see in the release, was down a couple of hundred basis points, which was expected. But your slot drop up 7% and your table drop up 12%, clearly shows that either the customers that were staying in your property, we're spending more per trip than what we had seen in prior periods or maybe others are, I don't know, using other properties as dormitories and then coming over to your property. But can you add any additional color just in terms of the disconnect between the growth that you had in drop versus the number of people staying in your property for the quarter?

Sure. I'll start, and again, I'll ask Brian to weigh in. Look, we said -- there's a lot that goes into attracting premium play. And disproportionately, the growth that you're seeing is premium play and disproportionately, it is larger. And we set out several years ago to double down on what we do really well, okay? That's the service in the building, the amenities we have in the building, and also to improved even further certain aspects of our casino marketing function. And as part of that -- or as a result of that, I should say, you have seen pretty significant growth in our gaming market share. And I'm super proud of that. I'm super proud of the team for doing that. And you're seeing the benefits of that in Q3. It really is that straightforward. It's not the mass floor that's driving that. It's the hosted high-end customer.

Brian, what would you add?

Yes, the premium customer that's really looking for a premium experience. It's us continuing to invest in our facilities, in our offerings in the experiences, investing in our people, leaning into who we are focused on our culture of service, cleanliness, safety, at a premium level, and people are willing to pay extra for that. And so we get more of our fair share for that and can steal share at that point. People want value.

So it goes back to the perceived value that I -- the comment that I had in response to John's question. It's also technology. We're using a lot -- we're using technology very differently than we did before on the marketing side. It's -- honestly, there is no 1 thing. It's all those things. And the results that you're seeing, as I said, are disproportionately people that are staying in the building.

Yes. I mean, if I can add on F1 right now as we come into fourth quarter, and that's always been a popular topic, we're highly programmed for our premium crowd. We're seeing solid pickup right now. We've maintained our premium rates from last year, and we've maintained a 3-night minimum for that F1 weekend that no 1 else in the market has done. So feeling really good about where we are. We've actually bought 3 additional tranches of tickets. So really seeing great increased demand. And we have an outstanding relationship with Formula One. We're bullish on the future of the race. And I think it continues to pay dividends for not just us but for the market.

Great. And yes, F1 rates are impressively priced right now. And then just in terms of buybacks and how we should think about capital allocation? I know that was something that was becoming a little bit more recurring in the quarterly result. Julie, can you just give us an update in terms of how you're thinking about that from these levels?

Yes, sure. Thanks for the question. I mean we operate -- we're always diligent in looking at how to allocate our capital and we operate off the grid. And good thing we didn't do any buying in the quarter. But certainly, when we see value, we will be back into it. And we're refused to be overly programmatic here. We like to retain the flexibility.

Yes. We've tried to be super explicit that we're not programmatic buyers of the stock. Sometimes if you buy for several quarters in a row, people seem to forget that. But we like to buy when people are unusually bearish and its successively cheap. And when we do buy, as Julie mentioned, we use a price-based grid. We had a grid in place in the third quarter. but with the movement in the stock, the grid wasn't in play. We have significant free cash flow inflection point coming in 2027, driven in large part by Wynn Al Marjan. And we think there's continued room for the stock to run. And if it retraces, we will be back half.

Our next caller is Steven Wieczynski with Stifel.

So Craig, I want to ask -- start with Macau and go back to Golden Week, which I think you described it as unusual. And yes, look, we understand there were some weather headwinds early in the week and all that stuff. But wondering what you think kind of drove that unusual pattern, meaning folks especially the higher-end folks stayed away, then they came back. It seems like in full force later in the month. So I guess the question is more around should we expect this type of behavior to kind of repeat itself going forward around this holiday? Or I know that's somewhat philosophical.

Yes, no problem. I mean, we're asking ourselves the same question. So don't know yet. I mean I think to the causation, I think we all view it as kind of all of the above. all the things that you said. And we were pleased to see the tail end in volumes after the holiday. And it remains to be seen. We will certainly think about our hosting strategy and our room booking strategy a little bit more flexibly as we move into Chinese New Year and May Golden Week, but we'll see. I mean 1 event is not yet a trend.

Yes, it makes sense. And then second, can I ask a question on Boston because you never get a question on Boston.

Yes. Bring it on.

Okay. So the property was obviously very -- it's very stable. If I look at the drop on the margin side of things, wondering if that was more around promotions, just trying to figure out if you guys had to promote more to drive stability around volumes, and that was the part of the margin deceleration or I'm just totally off base with that?

Definitely not. Definitely not that. It is not a promotion-driven promotion-driven issue. You really have kind of -- and generally, Boston is very, very stable. And in fact, this quarter, it was stable, too. But in response to your specific point, you really have kind of 2 macro trends that are happening there. One is you're constantly trying to grow the database and try to move out in concentric service from the property and add incremental customers. And the other is labor costs. And so they work against each other, and you're constantly playing those 2 things against each other and trying to drive the best result that you can. It really is that straightforward. So the margin will bounce around based on hold, based on volumes in the period -- but we -- the team and Jenny, in particular, are incredibly, incredibly adept at managing the intricacies of that business.

Operator, the next question will be our last.

And our final question comes from Steve Pizzella with Deutsche Bank.

Starting off with a little bit of a longer-term question. You mentioned the free cash flow inflection as the CapEx cycle tapers off and UAE comes online. Can you talk about how we should think about the possible uses of the free cash flow in 2027?

Yes, sure. We are always thinking about the best use of cash irrespective of a free cash flow inflection or not. But we -- you've seen us over the course of the past couple of years, return capital through a recurring dividend and through buybacks. So certainly, capital returns are an important part of our strategy. Beyond that, we have an incremental land bank in the UAE. I think before we really put scale the capital into that, we will want to size the market and really satisfy ourselves that the market is what we expect and what I think others expect or even better.

And so it will really be a question of whether -- how much incremental CapEx to deploy and what we return to shareholders, kind of the -- I hate to give you a plain vanilla answer, but that's really how we think about how we think about things. We have an exciting opportunity in the UAE, and we love to return capital. So we'll see how those 2 things play out. I suspect if history is any guide, it will probably be a combination of all of that.

Okay. Great. And then real quick, it was reported that the UAE would potentially offer on online gaming license per an Emirate. Can you talk about if you would be potentially interested in one of the licenses?

Not really. I think it's -- we don't tend to comment on press speculation, and I think it's really up to the Emirates and the GCGRA, the regulator there how and when they enact incremental forms of gaming.

Okay. Well, with that, we'll bring the call to a close. Thank you for your continued interest in Wynn Resorts, and we look forward to updating you again early next year.

Thanks, everybody.

Thank you for participating on today's conference call. You may now disconnect, and have a great rest of your day.