Related Cos. Pitches $10B Hudson Yards Plan, Including Wynn Casino

Posted on: May 29, 2023, 04:23h. 

Last updated on: June 1, 2023, 02:29h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Real estate developer Related Cos. pitched a $10 billion proposal to develop the western part of Hudson Yards on the West Side of Manhattan, featuring a Wynn Resorts casino as a centerpiece.

Related Wynn
Related Cos. CEO Jeff Blau. He said the $10 billion Hudson Yards development will feature a Wynn casino hotel. (Image: The Real Deal)

Related CEO Jeff Blau revealed the plan to the New York Post, noting it could start with a 3-million-square-foot hotel tower bearing the Wynn name. With its reputation for operating some of the world’s most highly-rated hotels and restaurants, Wynn could fit nicely in one of New York’s tonier neighborhoods.

Blau told the Post that the project could be “one of the most incredible tall buildings in New York City.”

It’s expected that the gaming area at the West Side venue would encompass 250,000 square feet, likely making it larger than the casino space at Wynn Las Vegas. High-end eateries and glamorous retail stores — common amenities at Wynn’s other domestic properties — would be included.

Wynn Could Have an In in New York

Blau touting the Hudson Yards casino project comes as other gaming operators are encountering headwinds in their efforts to procure one of the three downstate casino permits New York regulators will award.

Last week, it was reported that Bally’s may have to abandon a plan to turn Trump Golf Links in the Bronx into a casino hotel. That’s because the New York City Parks Department has not yet approved a license transfer. Likewise, New York Mets owner Steve Cohen’s plan to develop a casino resort near Citi Field suffered a setback when State Sen. Jessica Ramos — a Democrat representing that area — said she won’t propose a bill to change the parkland designation of the property Cohen wants to use for the gaming venue.

All of that could be good news for Related and Wynn. But the companies have another potential advantage. The western part of Hudson Yards is close to the Javits Center. That’s New York’s primary exhibition and conference space, which loses out on business to other cities because it doesn’t have a nearby hotel. Related and Wynn would solve that problem.

Additionally, owing to its thriving venues on the Las Vegas Strip, Wynn has an established track record in terms of luring meetings, incentives, and convention and exhibition (MICE) business. That could be to the liking of revenue-hungry New York lawmakers.

Where Wynn Fits

Related and Wynn are seen as benefiting from the trials and tribulations endured by Bally’s and Cohen and anti-casino sentiment for plans in Coney Island, Times Square, and other parts of the city. To date, community groups haven’t protested the Hudson Yards plan.

Combine that with the promise of 1,700 hotel rooms that could lure more conventions to the Javits Center, and the Related/Wynn proposal may be one of the most viable competitors to Las Vegas Sands’ attempt to bring a $4 billion casino hotel to the Nassau Coliseum site in Uniondale, NY.

As the Post reported, the primary headwind Related and Wynn face could be State Sen. Brad Hoylman — a Democrat representing the Hudson Yards area. He claimed the original purpose of the land Related wants to develop was for affordable housing, parks, and a new public school.

Adding to the intrigue is the fact that Hoylman is one of the six review board members that will decide the fate of the bidders in the downstate casino license competition.