Wynn Las Vegas Postpones Tower Renovation Due to Customs Duties Delay
Breaking News:
Published on: May 6, 2025, 05:35 PM (PST)
Last Updated on: May 6, 2025, 05:48 PM (PST)
Craig Billings — CEO of Wynn Resorts — Addresses 'Tariff Headache'The Tower's Remodel Takes a $200 Million Hit
Wynn Resorts' CEO, Craig Billings, made a shocking revelation during the company's first-quarter earnings call. In an unprecedented move for the Vegas casino industry, Billings admitted that recent tariffs have forced them to postpone a $200 million renovation of the Encore tower - initially slated for this summer[1][2].
Billings explained that the tariffs, imposed by the Trump administration, have amplified the costs of importing luxury hotel items such as custom furniture, lighting, and electronics, primarily manufactured in China. The daunting 145% tariff on Chinese imports has significantly impacted these expenses, making the Encore tower remodel project untenable at present[2].
He alluded to their alternative sourcing efforts, stating that they're "actively working through alternative sourcing for the most impactful items." Once tariff rates stabilize, Wynn Resorts will reassess and revise the affected items' specifications and resources[2]. However, due to the swifter-than-expected pace of change in the situation, they were unable to provide a revised timeline for the project.
Effects on Operational Costs Minimized
According to Billings, the operational costs fueled by tariffs on imports, primarily focusing on food and beverages, will be "low and easily managed." Despite food prices escalating 2.6% since the implementation of the first wave of tariffs in February, affecting the costs of restaurants and hotels, Wynn Resorts remains flexible[1].
It's not just Wynn Resorts feeling this heat; food prices have risen for fresh produce by a staggering 5.4%, putting pressure on operating costs in the restaurant and hotel industries.
MGM Resorts and Caesars executives, during their respective earnings calls, seemed unfazed by the tariffs' impact on their operations, suggesting no major strategic shifts in response to the tax increases[3][4].
Compared to rivals, Wynn Resorts has been hit hardest, reporting revenue declines that fell short of Wall Street estimates for Las Vegas, Encore Boston Harbor, Wynn Palace, and Wynn Macau in Macau[1].
This sudden setback, combined with the lingering effects of the ongoing pandemic, casts a long shadow over the future of Wynn Resorts' planned projects in the US.
- The CEO of Wynn Resorts, Craig Billings, addressed the 'tariff headache' in a first-quarter earnings call.
- Wynn Resorts is delaying a $200 million renovation of the Encore tower due to tariffs.
- The tariffs, imposed by the Trump administration, are increasing the costs of importing luxury items manufactured in China.
- Wynn Resorts is actively working through alternative sourcing for the most impactful items affected by the tariffs.
- The operational costs related to food and beverages are expected to be low and easily managed.
- Food prices in Las Vegas have risen by 2.6% since the tariffs were implemented.
- MGM Resorts and Caesars executives seem unfazed by the impact of tariffs on their operations.
- Wynn Resorts has reported revenue declines that are short of Wall Street estimates for several of its properties.
- The ongoing pandemic continues to have lingering effects on Wynn Resorts' future plans in the US.
- The total tariff on Chinese imports is a daunting 145%.
- The policy and legislation regarding tariffs and trade fall under the scope of politics.
- The casino culture and the casino-and-gambling industry are profoundly affected by changes in the industry, finance, business, banking-and-insurance, and the general news.
- The remodel of the Encore tower, originally planned for this summer, is now supposed to take place at an undisclosed future date.
