Whenever an article is written about Wynn Resorts (WYNN) the author will inevitably bring up a comparison between the Las Vegas and Macau operations. I decided to dig a little deeper into the statistics of the two Wynn units. I looked at various stats for both the hotel and the gaming revenue for the Las Vegas and Macau resorts.
The occupancy rate shows the seasonal trends for the two resorts. The occupancy rate for Las Vegas typically peaks in the second quarter while Macau's peaks in the fourth quarter.
The average daily rate highlights the pressure Wynn has been experiencing in Las Vegas since the recession started. The average daily rate fell off of a cliff in the first quarter of 2009. It began to rebound in the third quarter of 2010, but it is nowhere near its 2006 levels. The Las Vegas average daily rate reported in the first quarter of 2011 was $240.00.
While there have been some bumps in the road for Wynn Macau's average daily rate, it has steadily increased in recent years. The Macau average daily rate reported in the first quarter of 2011 was $307.00.
Revenue per available room, or REVPAR, tells a similar story. The REVPAR for Wynn Las Vegas dropped dramatically during the recession while Macau's continued to increase, albeit with some declines along the way. The REVPAR in the first quarter 2011 for Las Vegas was $211.00 while Macau's was $272.20.
The comparison of the gaming statistics between Wynn's Las Vegas and Macau operations are amazing. For table games, the win per table per day for Las Vegas was $9146.10 in the first quarter of 2011. Macau had an average win of $23,255.00 per day on each table. The first quarter stats are not a fluke. Macau's average win has historically been miles above Las Vegas'.
The win per slot machine per day tells a similar story. Macau's average daily win far exceeds Las Vegas'. In fact, the disparity between the average slot win has increased in recent quarters. The Las Vegas average slot win per day was $186.00 per machine in the first quarter of 2011. Macau's was more than four times that, coming in at $775.30 in the first quarter.
The comparison of these statistics between Wynn's Las Vegas and Macau operations show why investors are focusing on Macau. Keep an eye on these metrics when Wynn reports second quarter earnings in a couple of weeks.
Source: Seeking Alpha