Wynn Puts $375M Encore Tower Project on Hold as Vegas Tourism Slips

Due to uncertainties surrounding U.S. tariff policies, Wynn Resorts has announced a delay in its planned $375 million capital expenditure projects, including the significant remodel of the Encore Tower in Las Vegas. CEO Craig Billings stated during a recent earnings call that the current pace of change is too significant to commit to revised timing on these projects. He had to stress that there will be no timelines for the projects to be resumed until there is clarity about sourcing and tariff impacts.

Most of the backlog of expenses is for the Encore Tower remodel, as it has primarily been about re-specifying furniture and fixtures at changing tariff levels. As Billings said, it has been cumbersome to source and test new materials, and that takes time, which causes delays. Even during the delay in completion, Wynn Resorts is selling all Encore rooms through the end of 2025.

This news comes while tourism is down in Las Vegas. The Las Vegas Convention and Visitors Authority (LVCVA) reported an 8% drop in visitor numbers in March compared to the previous year. LVCVA CEO Steve Hill addressed concerns about the downturn, stating, "What we're looking at right now, we think, is just a downturn in business for a period of time. It used to be a pretty normal thing. It does not mean that the public should extrapolate that into being COVID-like or Great Recession-like. We do not see that right now. There's no evidence that it'll turn into something like that."

Wynn Resorts' decision exemplifies the hospitality industry's need to develop an understanding of uncertainty in economic fluctuation as it evolves and in changing trade policies. For now, the company's approach is to wait and see, tracking where tariffs go before refocusing its capital programs.