ENCORE OPENING: WYNN DEFYING THE DOWNTURN - Business

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Dec. 04, 2008
Copyright © Las Vegas Review-Journal

ENCORE OPENING: WYNN DEFYING THE DOWNTURN

Megaresort set to open even as Strip casinos continue to struggle

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL

ENCORE BY THE NUMBERS

2,034
HOTEL ROOMS

72,000
SQUARE FEET OF CASINO SPACE

5
RESTAURANTS

11
RETAIL OUTLETS

Wynn Resorts Ltd. is slated to open Encore, a $2.3 billon resort connected to Wynn Las Vegas, three days before Christmas.
Photo by Duane Prokop

The $2.3 billion Encore will open Dec. 22 in the middle of what many have called the worst economic crisis ever to hit the Strip and the gaming industry.

But don't expect Wynn Resorts Ltd. to change its style.

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Encore, with 2,034 hotel rooms, is attached to Wynn Las Vegas. The resort will open at 8 p.m., three days before Christmas, with 72,000 square feet of casino space, five restaurants, 11 retail outlets, a nightclub and a luxury spa.

On Wednesday, Encore began selling tickets for entertainer Danny Gans, who will perform in the resort's theater beginning Feb. 10.

Deutsche Bank gaming analyst Bill Lerner doesn't think Encore's opening will grow the market in an environment hampered by a slow economy and reduced consumer spending. On the Strip, gaming revenues have declined more than 6 percent in 2008 through September.

Lerner said Encore will probably take some business from Wynn Las Vegas and draw customers from neighboring Strip resorts. But he doubts Wynn Resorts Chairman Steve Wynn will hold back on the property's grand opening extravaganza.

"It's not going to change the way he opens the property," Lerner said. "There won't be discounted rates or reduced price points. If you do that, it's tough to get them back when the market improves."

Brian Gordon, a partner in Las Vegas-based business advisory firm Applied Analysis, said new casino openings have historically boosted visitation. But a resort like Encore has never opened in this type of economic climate.

"In the big picture, Encore is the beginning of the wave of several project openings over the next 12 months," Gordon said. "Only time will tell how the new projects will perform."

Encore is attached to the 2,700-room Wynn Las Vegas, so the properties will share back-of-the-house operations.

"Service levels will still be beyond expectations," Lerner said.

During Wynn Resorts' quarterly earnings conference call Oct. 30, Wynn gave away a few details about Encore, such as large glass windows that allow casino customers to look out onto the resort's grounds.

"It's the prettiest thing we've ever done," Wynn said. "If that sounds like developerspeak, it is."

According to the Encore Web site, hotel room rates start at roughly $320 a night for midweek.

The company started a national advertising campaign for the resort. A television commercial features Wynn sitting atop Encore and is airing on CNBC, Fox News, CNN and Bloomberg Television, as well as locally on Fox stations in San Diego, Phoenix, Los Angeles, San Francisco and Las Vegas.

The commercial is similar to the television spot that aired in April 2005 for the opening of Wynn Las Vegas.

In addition, Wynn Resorts released a nearly minute-and-a-half long spot on YouTube.com that shows the making of the Encore commercial.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Donnie wrote on December 15, 2008 07:03 AM: Another business run on fake credit. I guess this means more losses for the banks that loaned this con guy more money to build=just what the world needs, another casino in vegas, LMAO!~ When will the insanity end. The Man wrote on December 11, 2008 08:56 AM: Wynn is opening another property in this economy? How? because the Wynn, like all Steve Wynn properties, knows you must take care of the customer.. And they do. Thats why he can charge $320 a night and get it. Boyd, MGM and Harrah's have cut back on customer service in order to take care of the stockholders. The number of jobs they lost because of that reflects in their room rate and lack of customers. Plus look at that empty hole where the Stardust used sit. Progress?? Nope... lelele wrote on December 07, 2008 08:43 PM: Why do so many of you have such animosity toward Steve Wynn? He can be credited with making Las Vegas what it is today!!! And for those of you making negative comments about Encore... I do not know where you have received your information, but you are not entirely correct. I work for Wynn Resorts, have for years. Having seen Encore from the inside, I can confidently say that it is an original, breathtaking property within its own right...not just an "copy" of Wynn. Everyone is entitled to their opinion, but please do not speak of what you have no knowledge of. He has NOT hired "temps" to open the casino. He has an entire full-time staff for Encore in itself. There is an additional "steady-extra" board to fill in when necessary, as in any other casino. Actually, he went on Larry King Live last week and stated that he simply "does not lay off employees". From my personal experience, Wynn Resorts IS the best and one of the strongest companies to work for in the resort industry! Joel Rossetti wrote on December 07, 2008 12:44 PM: Encore opening Bravo! Could someone get Steve Wynn to release to the public copies of the narration you listen to on the self-guided tour of his art collection? Please? Wynn Employee wrote on December 07, 2008 09:57 AM: I work for Wynn and I am SO proud to see the opening of Encore! I have personally worked very hard in it's opening. I can't wait until the 22nd. I will be waiting on the inside, ready to welcome our guests! Whateverusaydear wrote on December 04, 2008 10:42 PM: "Karma speaks...that is why he is going blind and no one can do anything about it.........." Since when is illness a consequence of "karma" speaking? I suppose all people with illness (eye problems, cancer, infertility, congenital disorders and more) have bad karma too? Maybe crime victims also suffer from "karma" speaking too? Not to mention people losing their jobs and homes. If you don't like a private employer, fine... no one is making you working for him. I hope Mr. Wynn is successful in his endeavor, provides jobs for the community and brings needed revenue for Nevada. NativeNevadian wrote on December 04, 2008 09:09 PM: Opps....I meant "not so much oil but precious water" something every human being needs to survive. Wynn Scrooge wrote on December 04, 2008 08:32 PM: Wynn only hired temps even in a good economy with the irst Wynn. He is definatley the KING OF SCROOGES as far as I am concererned. He would steal a nickel from a dying person so he would not have to cash a $100. NativeNevadian wrote on December 04, 2008 07:18 PM: Vic: You don't understand why people don't like Steve Wynn? 1. He has ruined the old "Las Vegas" by being the first to take away what Las Vegas used to be. It would help if anybody in this god forsaken town could appreciate an "Historical Landmark" because that certainly does not exist here. 2. He claims he has no "mob" connections, yeah right, his father was a liquor distibuter in New Jersey...enough said..Frankly I wish the mob had the controll it once did...town had more class then and no ghetto gangs...... 3. He is blamed for the increase in unwanted population growth. Which will come back and bite everyone in the rear when we run out of water. Wars in the future will be over natural resources. Not so much oil, but precious oil. And I personally back northern Nevada 100% ON NOT GIVING UP THEIR WATER RIGHTS!!! Just so y'all know I do know what I am talking about..........my mother was a showgirl here back in the 1950's and 1960's....She danced at the Royal Nevada, El Rancho, Dunes, the Flamingo, and Desert Inn just too name a few I have to hand it to him, The Bellagio was EXCELLENT...he should have stopped while he was ahead.. The Wynn....does not live up to the Bellagio.....and NEVER WILL.... As far as a class act...he isn't, what fool would stick his finger through a priceless piece of art work?? You would have that painting behind glass where no one (not even yourself) could put your greasy little fingers on it. MORON............ Karma speaks...that is why he is going blind and no one can do anything about it.......... Horacio Cambeiro wrote on December 04, 2008 05:27 PM: Official "Encore" Hotel & Casino Las Vegas TV Commercial (Widescreen) 2008 NEW! http://es.youtube.com/watch?v=tikkrfNv-08 Read All Comments