Wynn Resorts Aktie

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.

Welcome to the Wynn Resorts Second 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 Holliday, 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, Julie. Good afternoon, and as always, thank you for joining us. I'm incredibly proud of our second quarter results. Wynn Las Vegas continued to be an outstanding performer on the strip, and we were pleased that EBITDAR in Las Vegas grew to a new second quarter record, up 2% year-over-year to nearly $235 million. Adjusting for hold, that number would have been even higher at $246 million. Demand was healthy throughout the quarter with impressive increases in both drop and handle driving a 14.5% increase in total casino revenues, a reflection of our ability to continue to take gaming market share.

We were also pleased to grow REVPAR a little over 1%, and we saw continued strength in retail. More recently, the business in July saw continued momentum in the casino with drop and handle both up versus July 2024, and strong retail sales. In the hotel in July, we had very strong weekends with softer midweek. In response, we prioritized midweek rate over occupancy, consistent with our premium positioning and made operational adjustments tied to occupancy levels.

Looking ahead, while macroeconomic uncertainty, including tariffs, remains a consideration, we remain positive about the business in Las Vegas. We saw the forward booking pace accelerate as July progressed, and our group and convention business looks strong heading into the fourth quarter and 2026. 2026 is shaping up to be a record year for both group room nights and revenues.

On last quarter's call, we talked specifically about the uncertainty in the tariffs that introduced into some of our development plans, primarily in Las Vegas. Subsequent to that call, we revised our sourcing and procurement plan for the Encore Tower Remodel in Vegas. And I now expect we will kick off that renovation in spring 2026 with minor disruptions during the renovation period. Encore Boston Harbor generated $64 million of EBITDAR, up about 3% year-on-year. Casino revenues grew over 5% year-over-year, driven by strength in both tables and slots. More recently, demand in Boston remained healthy in July with total casino revenues roughly flat to last year.

Macau delivered solid results in the quarter, though we were impacted by lower-than-normal VIP holds. During the quarter, we saw a steady April and strong June, offset slightly by a more subdued May. The business generated $266 million in VIP normalized EBITDAR with unfavorable VIP hold costing us nearly $13 million. Volumes were up nicely in the quarter with mass drop up 3.6% year-on-year and VIP volumes up meaningfully versus Q2 2024, though mass hold was a bit lower than we would like, particularly in May. Volumes accelerated further in July, which was a standout month despite some weather disruption with drop up year-on-year and sequentially versus June.

For June and July combined, we generated normalized EBITDAR of $3.3 million per day, which we've normalized to account for high hold during that period. The premium segment continues to lead the market forward in Macau. To further enhance our premium positioning, we have recently initiated 2 key capital projects, an expansion of the Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn Tower rooms at Wynn Macau. While we expect some minor disruption toward the end of the year from these projects, once they are complete, we expect they will further elevate our offerings at both properties.

Wynn Al Marjan Island continues to progress rapidly. We are pouring the 61st floor and on track to top out the tower later this year. We've also finalized several important food and beverage partnerships and agreed to key terms with a number of high-profile retail tenants. We remain on track for our targeted opening date of Wynn Al Marjan Island and continue to believe it is the most compelling development opportunity in the industry. Wynn Al Marjan will be the only property operating in what many analysts are predicting will be a $5-plus billion gaming revenue market.

As I have said before, our future is bright. And to that end, we purchased $158 million of stock in the second quarter at a weighted average price of just under $79 per share.

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

Thank you, Craig. At Wynn Las Vegas, we generated $234.8 million in adjusted property EBITDAR on $638.6 million of operating revenue during the quarter, delivering an EBITDAR margin of 36.8%. Low hold negatively impacted EBITDAR in the quarter by $11.4 million. OpEx, excluding gaming tax per day, was $4.2 million in the quarter, up 1% compared to the prior year due to normal wage inflation from our union and nonunion areas. As Craig mentioned earlier, we're pleased to be resuming our Encore Tower Remodel with construction set to begin in spring 2026 with an estimated spend of $330 million, which we expect to take about a year to complete.

Turning to Boston. We generated adjusted property EBITDAR of $63.9 million on revenue of $215.7 million with an EBITDAR margin of 29.6%. Casino revenues grew 5.2% year-over-year, and we maintained our discipline on the cost side with OpEx per day of $1.15 million, flat to Q2 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 EBITDAR of $253.7 million in the quarter on $883.5 million of operating revenue, resulting in an EBITDAR margin of 28.7%. Lower-than-normal VIP hold impacted EBITDAR by a little under $13 million in the quarter. OpEx, excluding gaming tax, was approximately $2.66 million per day in Q2, up 4.5% year-on-year, with the increase driven primarily by the Gourmet Pavilion and normal course cost of living increases. The team has done a great job in staying disciplined on costs, and we remain well positioned to drive strong operating leverage as the market continues to grow over time.

In terms of CapEx in Macau, as Craig mentioned, we've initiated 2 projects, an 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 our other ongoing CapEx projects, we expect to spend a total of $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 $3.6 billion as of June 30. This was comprised of $1.8 billion of total cash and available liquidity in Macau and a little over $1.7 billion in the U.S. Subsequent to quarter end, we announced an upsize of our credit facility in Macau, where we added $1 billion of additional undrawn revolver capacity from a number of new lenders, providing significant additional liquidity and flexibility to our balance sheet and indicating the strong confidence and support of our lenders in the market.

The combination of strong performance in each of our markets globally with our properties generating just over $2.2 billion of LTM adjusted property EBITDAR, together with our robust cash position creates a very healthy consolidated net leverage ratio of just under 4.4x. Our strong free cash flow and liquidity profile also allows us to continue returning capital to shareholders in both Macau and the U.S. To that end, Wynn Macau recently increased its final dividend for 2024 to approximately $125 million, which was paid in the second quarter. In addition, the Wynn Resorts Board has approved a cash dividend of $0.25 per share payable on August 29, 2025, to stockholders of record as of August 18.

During the quarter, we repurchased 2 million shares for approximately $158 million. These share buybacks, together with our recurring dividend, highlight our focus on and continued commitment to prudently returning capital to shareholders. In terms of CapEx, we spent approximately $165 million in the quarter, primarily related to the Fairway Villas renovations and F&B enhancements in Las Vegas, concession-related CapEx in Macau and normal course maintenance across the business. In addition to that figure, we contributed $58.2 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution to date to $741.1 million.

During the quarter, we continued drawing Al Marjan construction loan with a drawn amount to date of $395 million. We estimate our remaining 40% pro rata share of the required equity is approximately $600 million to $675 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, I wanted to touch on Las Vegas. It was very strong in the quarter, clearly outperforming the market by a wide range. How much of this outperformance do you attribute to positioning at the high end of the market, which is where your property sits versus some of the operational pivots that you've made? And looking ahead, what are your expectations for third quarter and fourth quarter, just given some of the comments that we've heard thus far this earnings season?

Sure. Thanks. I'll start, and then I'll ask Brian to comment as well. It's a lot of things. I mean, certainly, being at the luxury end of the market helps and our premium positioning absolutely helps. And I think that's the most resilient component of the customer base. But we've really spent the past 3 years -- 3-plus years, really doing everything we can to make sure that the building is in tiptop shape, making sure that we're programming the building appropriately and that we're driving the gaming business and that we're taking gaming share.

We've grown a couple of hundred basis points of gaming share over that period. So it's a whole bunch of things. It's a bit of a river of nickels, if you will. And I'm incredibly proud of where we are.

Brian, do you want to comment on Q3 and the rest of the year?

Yes, the team continues to accelerate. Booking pace continues to look actually quite good. July, we saw some of the best bookings we've seen all year. It's really a combination of the sales team, the casino marketing team and everybody coming together to really focus on the revenue side and then the ops team really focusing on making sure that we have the right amount of staff for the right amount of business, really just dialing in the business so that we can continue to excel as we move into fourth quarter, which we are very bullish about.

Yes. As Brian mentioned, the booking pace -- and I think I mentioned it in my prepared remarks as well, the booking pace -- the lull in Vegas over the summer has been well publicized. And as I mentioned in my prepared remarks, that was also the case for us midweek, and we really focused on average daily rate as opposed to occupancy, and that's worked really well for us. But the booking pace in July did accelerate over the course of July. I think you've heard that actually from a couple of our competitors as well. And our group business in Q4 looks really good.

Got it. And then just a follow-up on Macau. Certainly, the market seems to have inflected here the last couple of months of industry GGR has accelerated and it seems like you participated in that. What do you attribute that inflection to? Is that -- are you seeing a difference in terms of the actual fundamentals, the customers that are coming, the spend per customer? Or is it a function of the entertainment or calendar?

Yes. Again, kind of similar to my response on your Vegas question, it's a little bit of everything. Certainly, entertainment and the entertainment that's been in the market has played a role. But even subsequent to those concerts, which happened in late Q2, I believe, we've seen strength in the market in July. And so it's been great to see. I quoted our EBITDAR run rate over the course of July, and we're incredibly proud of that. And we can't -- we tend to not provide guidance or look further out than we've seen. So all I can really tell you is what we've seen in July, and it was good.

Our next caller is Steve Pizzella with Deutsche Bank.

Does the Big Beautiful Bill make you think any differently at all about some of the potential domestic CapEx projects that you've talked about in the past in both Vegas and I guess, in Boston?

Julie, do you want to take that?

Sure. I mean there are certainly some corporate tax provisions in the bill that will benefit us when you think about the depreciation side of things and interest deductibility. But that's really for us, it's going to be primarily in 2028 and beyond. So nothing really immediate that would cause us to change course with how we're approaching our CapEx programs.

Okay. And then are you just able to comment on 4Q Las Vegas group pace? And any early commentary on expectations for Formula 1 this year now that we're year 3, I believe. Any lessons learned from the past 2 years?

Brian?

Sure. Q4 as well as Formula 1 are both pacing quite well right now. And that continues -- that volume in inertia continues into '26 and beyond. So we're very bullish on where we sit with Q4 and F1 is much improved over last year. We're seeing that through corporate bookings and early corporate bookings, and we're maintaining the rates unlike some of our competitors. So it's the strength of the brand and what we do that allows us to do that.

Our next caller is Lizzie Dove with Goldman Sachs.

Sticking with Vegas, I wonder if you could go a bit deeper and just in terms of the consumer pulse check. We've heard there's been mixed trends between domestic versus international inbound. And then once people are in the hotels, are they spending in the same way? What are you seeing on the food and beverage and the kind of incremental side of things? Would just love to know if there's kind of been differences there.

Sure. Happy to talk about that, and thank you for the question. We sit in a unique position. We're not the best barometer of Las Vegas writ large. We're the best barometer, I think, of a very particular portion of Las Vegas. So -- and also, I'd also say we've never been about how many people are in the building, although that's been fine. We've been about who's in the building, very particular people in the building. And so I would say over the course of Q2 and really into July, as I mentioned in my prepared remarks, casino volumes have been very, very good.

That's always going to be disproportionately high end. So we haven't seen any diminishment in the willingness to spend at the tables and the slots. We've been able to hold rate, which is a good indicator of demand for what we offer. And we've been able to do that in a market where rates have dropped. And so I think that's a testament to where we are.

You specifically asked on the food and beverage side, average check in our fine dining restaurants, which again, I think would be the most sensitive, has been pretty stable. And so I don't think that's an indicator. So we'll see how things play out from a macroeconomic perspective. But right now, we're feeling good.

Great. And then just switching to Wynn Al Marjan. I'm curious, as we get closer to the Investor Day, closer to the launch, not too far from now, I mean, how do you think about ways that you can set yourselves up for that early 2027 launch for success? I saw you hire new team members. You've got the Wynn Mayfair acquisition. But what are the kind of things and building blocks you can put into place to put you in the best position for when that eventually opens?

Yes, it's a great question. I'll be honest, most of that is not transparent to you all, but it's a day-to-day effort on our part. I mean we're building and opening much like any integrated resort. We're building and opening a small city. And there's a ton of infrastructure that we have to put in place even outside of the building. So I think the best thing that we can do is expose the total addressable market opportunity expose the quality of the product that we are creating here. It will be uniquely win and will be reflective of our legacy of delivering just astounding physical spaces and educate people on what the opportunity is.

But all the hard yards of getting to the point where we can squeeze every dollar of EBITDAR out of that place that we possibly can, that's our job every single day. So I hope that folks attend -- the folks that have been invited, I hope they attend that Investor Day there. I hope they can see what we're up to and see the absolute power of what is happening in that market in Dubai and in the UAE.

Our next caller is Stephen Grambling with Morgan Stanley.

Just wanted to follow up a bit on expenses. First, on Vegas, it looks like you were able to keep costs relatively contained in the very low single digits. Curious if there was any timing of costs in there or other puts and takes to think about? Or is this just a proof point for managing the expense structure? And effectively, the same question around corporate expenses, which I think were down year-over-year.

Thanks, Stephen. Yes, I'll take that. Really, on the expense side, we just do -- we continue to manage it very diligently and judiciously. The teams across the globe really focus on that. They focus on making sure they're looking at what's coming up and making sure we're staffed appropriately, and we have a great flexible approach to that. So we're able to dial things up and dial things down in line with volume. And we take it very seriously, and we manage to that. And I think we always comment on the fact that we do it in a way that doesn't impact the guest experience, but it is a focus for us.

On the corporate expense side, nothing unusual going through there other than we did have our 20th anniversary in the quarter. So you'll see there were some costs involved with that celebration from an event perspective, but also on the equity side as well, there were some one-off grants associated with that to our day 1 employees.

And I would just add that Brian Gullbrants just threw his phone against the wall when you asked that the expenses in Vegas were timing oriented. These guys work really hard, I mean, day by day to make sure that from an expense and staffing perspective, we are exactly where we need to be, threading the needle of the brand and EBITDAR. And it's a real testament to their ability to manage these businesses and manage them really, really, really well. And that's true in Macau, and it's certainly true in Boston as well. On corporate expense, it is timing. And it often is timing because you get -- it's substantially more lumpy.

Makes sense. That's helpful. And then one follow-up on Macau. Just given the strength of the market, you did mention it's all about getting the right person in the seat in Vegas. I imagine the same is fairly true in Macau. Maybe you can elaborate on who is coming into the market in Macau. Is it skewed to specific submarkets within China versus Hong Kong? Is it new customers versus returning younger or otherwise?

Sure. Yes, I think we've mentioned on previous calls that we've seen a very large influx post-COVID, post reopening of new customers into Macau. So certainly, there's been a lot of high-quality premium mass play. I think the mix of customers has been pretty consistent with what we've seen since the market reopened. And so I don't think there's been a sea change per se in who's showing up. But the results in the market have been good, and we're delighted with it.

Our next caller is David Katz with Jefferies.

I wanted to go back to Macau. One of the items that comes up in conversations and checks, et cetera, is promotions and credit. I'd love to get your sort of perspective on what's happening in the market and how you deal with that? And second, entertainment seems to be a big driver there. I'd love to get a sense for, again, what your perspective is and what your participation is in any of that going forward.

Sure. On the reinvestment side, and we've discussed this a little bit on prior calls, it is absolutely daily hand-to-hand combat for market share there. And we adjust and modulate our reinvestment up or down in any given day, hour, week, month depending upon what goals we're trying to achieve. So we have a very clear view, as I've said before, of how much incremental reinvestment we need to make in order to be competitive and also to make money. And reinvestment has actually been pretty stable over the course of the past several quarters. So again, we're very comfortable with where our promotions are.

On the entertainment side, I guess I would have -- this would be kind of a two-pronged response. The first is it is absolutely true that entertainment has been driving visitation and demand. Now when that entertainment is a large-scale arena-based event, it's kind of similar to citywide in Las Vegas. So it tends to affect everybody in the market. And obviously, we benefit from that. We also recognize that we need the capability to drive entertainment.

And so this may have been lost a little bit in the midst of time because we haven't talked about it in a while. But -- the largest component of our concession commitment is actually an event center, and we're well underway with engineering and design of that event center. It will be on the north parcel of land that sits there adjacent to the main entry to Wynn Palace. And we're excited about it because it will allow us to program great entertainment and drive visitation.

And if I can follow that up, when is that supposed to be completed, active, et cetera?

Subject to -- as Julie has mentioned a few times, all of that concession CapEx is subject to a bunch of government approvals. So it's a reasonably wide range, call it, early '28, but I would caveat that with we need all of the appropriate government approvals.

John DeCree with CBRE.

Maybe one on Vegas to start, a little nuanced, but maybe priming for a little additional color. So Craig, when you spoke to the midweek, like everyone else being a little softer on occupancy, but you're holding rate. What have you seen on property spend for the customers that are still coming in? Has that been same up, down? Is that holding up and just fewer people are coming in midweek? How would you characterize that?

Yes. On property spend has been fine. I don't think we should be surprised by that, though. I mean if you look at our second quarter average daily rate, it was actually up 3% from prior year. And so the customer that is on property is willing to pay that rate again in a market where others rates haven't been that high. So the customers that are here are doing -- are behaving the way we would expect them to.

Brian, anything to add?

Yes. Another metric that we follow is all of our luxury retail, and we have significant retail space here, and we continue to see it accelerating. So it's up year-over-year and quarter-over-quarter. So that's also a nice indicator that the top end of the market is still willing to spend discretionary income and spend it here at Wynn.

Understood. Maybe one more big picture. It looks like Thailand has quieted down for the time being. And Craig, now that your plate isn't plenty full already, but is there anything else around that you guys are kicking the tires on that looks interesting at the moment as it relates to new markets or new developments other than the kind of projects you've outlined, reinvesting in Las Vegas and Macau and obviously, Iraq?

Yes. Thanks, John. Our priority -- and again, we've talked about this a little bit previously, but our priority right now is the UAE. And as I mentioned, construction on that project is advancing. Don't forget, we have a whole land bank there, and you shouldn't be surprised over the course of the next year or so to hear us talk about using portions of that land bank. We have a land bank in Vegas. We have a land bank in Boston.

So we have a whole bunch of development opportunities that are directly adjacent to our existing resorts. And so to the extent that Thailand goes quiet for an extended period of time or to -- as you saw in New York, we would drew from New York, we have plenty of growth opportunities. But honestly, the amount of work and effort required to get Wynn Al Marjan open is a lot. And so that's where our focus is right now.

Our next caller is Steve Wieczynski with Stifel.

Just one question for me. All my others have been asked and answered. So Craig, if we go back to the UAE and we think about the EBITDAR range that you guys have out there today, which I think is $265 million to $460 million, somewhere around there. And obviously, every day, you're learning more and more about the market, what type of player will eventually come to that market. As you sit here today and think about some of the assumptions, I mean, going back to your October Investor Day, as you kind of think about some of those assumptions that you're using to come up with that EBITDAR range, do you feel like some of those assumptions might end up being somewhat conservative? And I guess this is another way of me asking, do you see upside to that range based on your current day-to-day learnings about the market?

Yes. Sure, and thank you for the question. Look, we haven't seen a lot of value accreting into the stock for Wynn Al Marjan to date. Now you could argue that it's starting to creep in, awareness is going up. We're doing the analyst visit to the UAE later this year. And history -- I've been in this industry a long time, right? History has shown that you don't tend to get credit until it becomes a little bit more near term. So we're not really incentivized to overplay the market. That being said, when we compiled our projections, we did so assuming there would be multiple competitors in the market. And it looks like we're going to be the only one for quite some time.

We noted in our Investor Day that we expected GGR in the market to be $3 billion to $5 billion. You've seen analysts come out with estimates as high as $8 billion. So -- and even if it's a fraction of that size, the absence of near-term competition, I think, introduces conservatism into the base case that we presented at the Analyst Day.

I would also add that receptivity to the project has been incredibly strong in and around the region. I mean, I talk to people in India that are aware of it. I talked to people in -- obviously, in the UAE that are very aware of it. And so there's a real excitement for the project. And I think when people see what we're building, they won't be disappointed.

Our next caller is Robin Farley with UBS.

Yes, I have a question about the UAE project, and you kind of answered half of it already just in that last question. You have a competitor that's building a resort in the UAE without gaming approved yet. And so the question is going to be if you anticipate being the only one by the time you open in 2027, which it sounds like you anticipate being the only one. But I guess what's your expectation for how long before another project that's already under construction might -- that you might have that competition?

Thanks, Robin. Yes, we do anticipate being the only one for some period of time. How long it would take really depends upon if there are regulatory changes, if there are decisions by other Emirates to introduce gaming and how long it takes to get them operational. So that's very hard for me to comment on. What I will say is, keep in mind, we operate in the 2 most competitive gaming markets in the world, and we punch well above our weight. So we presented a base case in our Analyst Day comprised of a management fee and our pro rata share of EBITDAR in the project that was incredibly compelling and it assumed multiple competitors.

So to the extent that even that base case plays out, we feel very good about the project. And if we are the sole operator for an extended period of time, then obviously, we feel even better. So yes, we're just fine if they end up being multiple competitors in that market, and we're a lot better than fine if there's not.

Operator, the next question would be our last one, please.

Ben Chaiken with Mizuho.

Another question on UAE, maybe similar to Lizzie's question, but maybe slightly more specific. So you've talked about the different player cohorts in the past. Maybe talk about your current plan to build the pipeline going into this opening. It's obviously been a while since there's been a large opening in a new market. Obviously, you have the casino you purchased in London, but is there a social media campaign? Are you relying on existing international players? Would just love any color on the tactical kind of behind-the-scenes decision-making or thought process.

This is your second quarter with a great question. So thank you. Yes, we're doing a lot. So one, you mentioned Mayfair. Mayfair is an important part of that. You have a lot of visitation from the region that goes into London and goes into Mayfair specifically. That's important. We have our casino hosting leads already on staff. We are driving awareness with key players in the market. We are present at any number of key events that are happening in and around Europe, India, the Middle East, where you have people who have a lot of know. We have nightlife partnerships structured and ready, and those have a whole premarketing element. And of course, we will be doing a preopening brand campaign to drive awareness throughout the region.

That brand campaign will focus really on the property as a luxury integrated resort as opposed to gaming specifically, but we're doing a lot. We recognize this is the first opening under this management team, and we need to be in a position to knock the cover off the ball. So we're doing a whole bunch of things to make sure that we have a very, very strong opening with a lot of heads in beds.

Operator, apologies. There is one more question out there. I believe Shaun Kelley would like to ask a question.

And he is actually not responding. So, yes...

Okay. Well, then thank you, operator, and thank you, everyone, for joining us for the Wynn Resorts Q2 earnings call. We look forward to talking to you again in a few months.