We have been treated to a fabulous time at Encore, Wynn’s new all-suite hotel, these past two days, and so must admit to feeling a little biased towards the place right now. Yet we understand that we are not alone: channel checks suggest that Wynn Macau is on track to have a blowout month and will likely gain market share once the May numbers are released.

It is easy to see why. Wynn has raised the bar again with this property, and it’s a knockout beauty, easily the top of the market for decor, amenities and service. The Golden Flower is a clear choice as Macau’s top Chinese restaurant – as evidenced by the fact that Paul Tse was dining there on Wednesday night and the place was full of people paying easily around MOP2,000 per head. The spa leaves all others inhabiting lower levels of the atmosphere. The suites are luxurious yet not stuffy, and clearly aimed towards the tastes of elite Asian visitors.

More importantly, however, Steve Wynn has chosen to focus Encore’s charms on his own direct-VIP players. The premium mass area is small enough to be cozy for people who like playing just HK$50,000 a hand in cash chips. On Wednesday night it was full of such players. The Wynn Club is the only other gaming facility on the ground floor area of the Encore corner of the property. (There are two VIP salons near the Golden Flower restaurant, but they have been open since last December.) While some junkets are asking to bring players upstairs to the mansions and the top-floor “Sky Casino”, we understand that the management team is (bravely) favoring players who would prefer to play with the house. And there is a 250-strong team of people on hand, most of whom wear skirts, to cater to them.

As we have pointed out before, this business is where the future lies for Macau’s concessionaires as China’s wealthy class are increasingly able to move more of their assets offshore. Margins after rebates are nearly double what they are through the junkets, and win-hold percentages are usually higher as the casino management often makes tougher credit decisions and finds other ways to ensure the loyalty of their customers than the junkets do. Where Wynn Macau beats all other by a mile is its International Marketing team’s ability to source direct-VIP players, particularly in China. This is not a concessionaire that simply hopes whales will turn up on its property; Linda Chan’s platoons go out and aggressively find them.

And that’s just on the table games. We note with appreciation the presence of VIP slot machines in the Sky Casino. It says something about Wynn’s strength in this segment that they have their own rooms that include a dining area and three specially designed chairs for slot whales.

Concerns about concessionaires getting into riskier credit decision-making scenarios are not unfounded in the direct-VIP business, to be sure. But when the market is this hot, this is the segment of it where they want to be. And Encore is the best of the best on offer to these players right now.

Article used with permission and copyright to Intel Macau.com . Photo used with permission and copyright to Wynn Macau