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Wynn Resorts (WYNN) Reaches Agreement to Open Resort in UAE

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Wynn Resorts, Limited (WYNN - Free Report) and Marjan, RAK Hospitality Holding have recently reached an agreement for developing a multibillion-dollar integrated resort on the man-made Al Marjan Island in Ras Al Khaimah, United Arab Emirates. This move marks Wynn Resorts foray into a new market.

The resort is scheduled to open in 2026. This will mark the company’s first resort in the MENA region. The luxury hotel will have more than 1,000 rooms, top-notch shopping venues, state-of-the-art meeting as well as convention facility, an exclusive spa, more than 10 restaurants and lounges.

Craig Billings, CEO of Wynn Resorts, said “Al Marjan Island is a pristine setting and an ideal greenfield location for us to create the one-of-a-kind guest experiences for which Wynn Resorts is renowned. The region offers tremendous potential for the hospitality and tourism industry, and we are excited about the prospect of developing an integrated resort in Ras Al Khaimah.”

The company is quite optimistic regarding the success of this resort. The resort is likely to provide a boost to Ras Al Khaimah’s economy. Recently, Ras al-Khaimah Tourism Development Authority introduced a fresh division, Department of Entertainment and Gaming Regulation, which will regulate integrated resorts, including hotel operations, entertainment spaces, restaurants, spas, retail shops, convention areas and gaming.

Stock Performance

Share of this Zacks Rank #3 (Hold) company have fallen 15.6% in the past year, compared with the industry’s decline of 19.4%. The coronavirus pandemic has negatively impacted the company’s performance.

However, Wynn Resorts, one of the leading companies in the gaming and lodging industry, is well-poised to grow strategically. Given its strong brand name, Wynn Resorts is better positioned to command a premium rate relative to its peers in the gaming and lodging industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Key Picks

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. (CROX - Free Report) , RCI Hospitality Holdings, Inc. (RICK - Free Report) and Guess, Inc. (GES - Free Report) .

Crocs flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 46.9% in the past year.

The Zacks Consensus Estimate for CROX’s 2022 sales and earnings per share (EPS) indicates a rise of 48.8% and 25.8%, respectively, from the year-ago period’s levels. You can see the complete list of today’s Zacks #1 Rank stocks here.

RCI Hospitality sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 75.8% in the past year.

The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.

Guess carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 97%, on average. Shares of Guess have increased 4.1% in the past three months.

The Zacks Consensus Estimate for GES’s 2022 sales and EPS suggests growth of 38.6% and 4,342.9%, respectively, from the year-ago period’s levels.