And yet the whole thing is a money-losing business subsidized by Wynn's property in Macau.
Encore opened on December 22, 2008. I think the Wynn would have remained profitable if he had never opened the Encore. The Encore introduced massive debt, and increased revenue for rooms, food and beverage, but did almost nothing for additional casino revenue. In 2009 the combined casinos took in almost the same amount of money as the Wynn casino alone.
The construction cost of these buildings cannot be supported by sales of food and drink and rooms.
Net Loss/Income in millions dollars, Calendar Year for Wynn+Encore in Vegas($95,632)
+$9,808 , 2006
It is why Ceasars expenditure of $550 million on Project Linq will be very difficult to pay back.
The New York Marriot Marquis in Times Square cost $350 million with 1,892 rooms and 57 suites in 1985. The Encore with 2,034 rooms cost $2.3 billion. Even allowing for 23 years of inflation, The Marquis costs roughly $700 million in 2008 dollars
Marquis has The View Restaurant & Lounge, Crossroads American Kitchen & Bar, Broadway Lounge, and Starbuck's Coffee. They can charge $400 for room night regularly, with $55 parking ($80 valet). Along with incidental retail business it is a profitable operation.
The Encore has more than three times the development cost. It probably brings in much more money from food, retail and entertainment. But all those expensive restaurants have high food costs and labor costs.
Profit margin on a casino is usually extremely high.