Tilman Fertitta Ups Stake In Wynn Resorts
Hospitality owner and billionaire Tilman Fertitta has beefed up his stake in Wynn Resorts — again — and reportedly has an eye toward pushing it to expand in the U.S.
Fertitta now owns 10.9 million shares, or more than 10% of the company, and has the option to buy 1.7 million in common stock at $85.73 by May 13, Securities and Exchange Commission filings reported by Seeking Alpha show.
The billionaire was already Wynn’s largest stakeholder. He initially acquired a 6.1% stake with 6.9 million shares in 2022, a move that sent Wynn’s depressed shares soaring. Fertitta increased his ownership stake to 9.9% in November 2024, surpassing co-founder Elaine Wynn.
Fertitta owns Fertitta Entertainment Inc., a conglomerate that includes the Houston Rockets NBA team and Golden Nugget casinos, as well as restaurant and hospitality brand Landry’s Inc., which owns 600 restaurants globally.
He entered the Las Vegas Strip in 2022, his stake in Wynn coming hot on the heels of him buying a 6.2-acre tract and announcing a 43-story hotel and casino. That project was still under development as of May.
Wynn Resorts' stock is still well below its prepandemic levels, but things are looking up on the revenue side. Shares have risen 5% year-to-date. Its Las Vegas operating revenue showed a 0.3% year-over-year increase from 2023. CEO Craig Billings cited increasing demand despite market headwinds as a revenue driver. However, its adjusted property earnings before interest, taxes, depreciation and amortization was down 1.25% YOY to $267M.
Wynn owns hotel and casino resorts in Las Vegas, China and Boston and has been trying to grow stateside.
It is expanding its Encore Boston Harbor casino. In January, it proposed an Encore casino in Virginia. The state legislature didn't pass a bill necessary to launch that project, but developer Comstack said it hopes it will get passed in future sessions.
A joint venture between Wynn and Related proposed a 2.7M SF casino in Related’s $25B Hudson Yards project in Manhattan last year. The proposal was rejected by Hudson Yards’ community board in January.
Wynn Resorts and nine women settled a lawsuit in 2023 alleging the company failed to investigate sexual harassment claims against co-founder and former CEO Steve Wynn.
The hotel sector is enjoying a victory lap after finally rebounding from coronavirus lockdowns. Roughly 94% of hotel investors plan to maintain or increase their holdings this year, up from 85% last year. Tight supply boosting property values and a boom in business travel due to RTO mandates are driving asset class confidence.
