Wynn and Melco Have Clear Growth Catalysts in Macau, UAE and Beyond

Wynn Resorts Ltd and Melco Resorts & Entertainment Ltd have identifiable growth catalysts that could support revenue and valuation, Texas Capital Securities said on 13 October 2026. The brokerage highlighted Wynn’s planned Enclave tower and theatre at Wynn Palace in Macau and the US$5.7 billion Wynn Al Marjan Island project in Ras Al Khaimah, UAE, while Melco’s catalyst centres on the fuller opening of the REM hotel at City of Dreams Macau later this month.

Texas Capital’s view on Wynn’s Macau investments

Texas Capital Securities analyst David Bain met Wynn Resorts representatives in early October and reported the company continued to view Macau as “very solid” with “strong investment potential”.

"Very solid" and "strong investment potential," Wynn said of Macau during the meeting, according to Texas Capital's report.

The brokerage flagged two concrete Macau initiatives as potential performance drivers for Wynn: the planned Enclave hotel tower development at Wynn Palace and a theatre project at the same property. Texas Capital noted that third-quarter Macau gross gaming revenue (GGR) came in slightly below some investors’ expectations after an initially stronger period following the FIFA World Cup football tournament, which ended in mid-July.

Texas Capital suggested the Macau market has shown uneven gaming revenue trends because of softer macroeconomic conditions in China, tougher year-on-year comparisons and recently clarified tax treatment of offshore accounts. The brokerage warned the clarified tax treatment could reduce liquidity among premium-mass and VIP customers. Industry checks cited by Texas Capital also indicated possible delays in visa approvals for travel to Macau in some regions.

Wynn Al Marjan Island and the UAE growth case

Texas Capital reiterated the potential contribution from Wynn Al Marjan Island in Ras Al Khaimah, United Arab Emirates. The brokerage said the resort remained on track for a September 2027 opening based on discussions with Wynn Resorts representatives in early October.

The project has a reported development cost of US$5.7 billion and is being developed by Wynn Resorts alongside local partners Marjan LLC and RAK Hospitality Holding LLC. Wynn Resorts holds a 40-percent equity interest in the scheme. Texas Capital said the project’s prospective contribution was not yet fully reflected in Wynn Resorts’ share valuation and pointed to deep feeder markets for the UAE resort. The brokerage added that expectations for investment returns had not materially changed despite geopolitical tensions in the Middle East.

Melco’s catalysts: REM hotel reopening and capital returns

Texas Capital identified the fuller opening of the REM hotel accommodation at City of Dreams Macau as a near-term catalyst for Melco Resorts. The brokerage expects REM’s anticipated opening later this month to provide clearer revenue visibility for the property while operating costs allocated to the venue should decline compared with initial opening stages.

Analyst David Bain wrote that the third quarter could represent a low point for Melco’s earnings, with property-specific disruption at City of Dreams Macau giving way to growth opportunities. Texas Capital also highlighted Melco Resorts’ relatively low share valuation and its active share repurchase programme as supportive factors. The casino firm repurchased about US$121 million of shares during the second quarter, leaving approximately US$590 million available under the existing repurchase authorisation. Texas Capital said it expected further repurchases at current equity price levels.

The brokerage estimated Melco Resorts’ free cash flow yield at roughly 24 percent and reported the company was trading at about 6.5x estimated 2027 enterprise value to EBITDA, a level described as near an all-time low by the report.

Property-level forecasts and regional operations

Texas Capital set out property and group forecasts for Melco Resorts. Its projections indicate City of Dreams Mediterranean and other Cyprus operations could generate roughly US$76.8 million in property EBITDA in 2027, up from an estimated US$70.3 million in 2026. For City of Dreams Manila in the Philippines, the brokerage forecast property EBITDA of US$116.4 million in 2027, down from an estimated US$126.3 million in 2026.

At group level, Texas Capital forecasted Melco Resorts’ adjusted EBITDA to increase to approximately US$1.22 billion in 2027, from about US$1.17 billion projected for 2026.

Melco Resorts operates casinos in Macau and the Republic of Cyprus and runs casino operations in the Philippines and Sri Lanka alongside local real estate partners.

What investors and operators should watch next

Near-term monitoring points are clear.

• For Wynn: progress on the Enclave tower and theatre at Wynn Palace, and construction and pre-opening milestones for Wynn Al Marjan Island aimed at a September 2027 opening.

• For Melco: the timing and performance ramp of the REM hotel at City of Dreams Macau and further activity under the share repurchase programme.

Both companies face market- and policy-driven variables in Macau. The brokerage’s reading is that headline GGR weakness, tax clarifications for offshore accounts and possible visa delays have combined to make recent trends more uneven. Market participants will watch operating updates and any disclosures that quantify the financial impact of those factors.

The assessment from Texas Capital provides a deal-focused lens: specific projects and capital management actions are the drivers the brokerage believes could re-rate the stocks if execution and market conditions align. Readers can compare these project-level developments with wider Macau and regional market commentary across our news and b2b coverage.