Trump’s tariffs put $200 million Wynn project on hold
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8 May 2025 •
Reading time: 2 minutes Wynn Resorts has postponed the planned renovation of its Encore tower in Las Vegas. The $200 million project was due to start this summer, but costs have been pushed too high due to import tariffs.
During the quarterly investor meeting, CEO Craig Billings told investors that the company has paused about $375 million of planned investments. That includes the renovation of the Encore tower. This is due to the high tariffs instituted with the re-election of US President Trump.
The high tariffs make luxury hotel fixtures such as furniture, lighting and electronics from China a lot more expensive. According to Billings, the impact of the tariffs has become so great that continuing with the plans is not feasible at the moment.
Last major refurbishment was in 2015 and now there’s another delay
The Encore tower last received a major refurbishment in 2015. The new refresh would take the hotel to the next level, but now has to wait.
‘Rates are too unstable right now to reschedule plans,’ Billings said. ‘We remain flexible, but cannot name a new date at this time.’
Meanwhile, the company is looking for alternative suppliers and materials to reduce costs. Only when there is clarity on levies does Wynn plan to move forward with the project.
Tariffs also hit food prices but Wynn calls impact limited
While import tariffs on furniture have a major impact, other parts of the business seem more manageable. According to Billings, higher food and beverage costs are ‘low and manageable’.
Since February, food prices have risen 2.6%. Fresh produce has risen as much as 5.4%. Still, the company does not expect these increases to cause major problems for Wynn’s restaurants and hotels.
Revenue figures also disappoint due to global market pressure
At the same shareholders’ meeting, Wynn Resorts also reported lower revenues. In Las Vegas, revenue fell by 1.8%, and in Encore Boston Harbor by 3.9%. In Macau, it even ran into declines of 8.7% and 19.9%.
By comparison, rival MGM Resorts revealed that they were little affected by the rates. Caesars also said it was not making any major changes to its strategy.So far, Wynn is the first major player in Las Vegas to openly admit that tariffs have a direct impact on their investment plans.