Occupancy, Rates Fall at Wynn LV

LAS VEGAS-Wynn Resorts’ occupancy, average daily rate and revPAR all fell at its Las Vegas property in the third quarter. The results were included in the company’s preliminary third quarter performance data, which it released late Monday.

Wynn Las Vegas achieved an average daily rate of $272 for the quarter, compared to $282 in the third quarter of 2007. The property’s occupancy was 96.1%, compared to 96.6% during the prior year period. As a result, revenue per available room (RevPAR) was $261, 4% below the third quarter of 2007.

Wynn says it decided to pre-release results to provide investors with more timely information due to the volatility in the global markets. “Our Company had a solid third quarter in both Las Vegas and Macau but we have very little visibility on future earnings due to the global economic situation and the recently imposed travel restrictions in Macau,” the company said in a statement.

The company says it expects somewhere between a $2-million operating loss and a $2 million operating gain on a GAAP basis, compared to a $35.8 million operating gain in the second quarter. Wynn attributed the results to a decline in EBITDA — between $68 million and $72 million for the third quarter of 2008, compared to $93.2 million for the third quarter of 2007 — and a $12.5 million increase in pre-opening expense related to Encore Las Vegas, which is scheduled to open late this year. The EBITDA decline is being attributed to a lower hold percentage and an increase in the company’s bad debt reserve “based solely on the current global economic uncertainty.”