Wynn Resorts has a large piece of undeveloped land located right across from its luxury hotels, Wynn and Encore, on the Las Vegas Strip. This land is especially valuable because there’s not much empty space left in that area. Over time, as more buildings go up and fewer open plots remain, the value of any remaining land goes up, especially land in such a prime, high-traffic location. Because of this, the land Wynn owns has become much more valuable since they bought it.
Estimated Value Now Reaches $1 Billion
According to Dan Wasiolek, a financial analyst at Morningstar, the land could now be worth as much as $1 billion. He based this number on how much similar properties on the Strip have sold for in recent years. For example, investor Tilman Fertitta paid $270 million for a smaller piece of land nearby, which helped estimate what Wynn’s larger property might sell for today. It’s a sign that the market for Strip real estate is still strong, especially for well-located plots.
Wynn Bought the Land in 2017 for Much Less
Back in 2017, Wynn Resorts purchased the land for around $336 million. At that time, this worked out to about $9.9 million per acre. If the land is truly worth around $1 billion today, it means the value has nearly tripled in just eight years. This increase shows how much demand has grown for real estate on the Strip and how good of an investment the land has turned out to be — even though it hasn’t been developed yet.
No Current Plans to Sell the Property
Even with the potential for a major profit, Wynn Resorts has not said it plans to sell the land anytime soon. During recent conference calls and investor presentations, the company’s leaders have been talking more about new international projects. One major focus is Wynn Al Marjan Island, a luxury project being built in the United Arab Emirates. The company is also looking into expanding into other places like New York and Thailand. It’s possible that Wynn is waiting to see if the land becomes even more valuable before they decides to make a move.
Sale Could Help Fund Growth or Reduce Debt
If Wynn Resorts ever chooses to sell the land, they would have a lot of options for using the money. A $1 billion sale could help the company pay down some of its debt or provide funding for future hotel or casino developments. This kind of cash could also help Wynn expand faster into new markets. For now, though, it seems Wynn is holding onto the land as a smart long-term investment while it focuses on growth outside Las Vegas.
