Posted on: December 19, 2023, 04:26h.
Last updated on: December 19, 2023, 04:26h.
Red Rock Resorts’ (NASDAQ: RRR) new Durango Casino & Resort in Southwest Las Vegas has quickly gained momentum after opening on December 5, 2023. The $750 million venue features a 73,000 square foot gaming space, a sportsbook, 2,000 gaming machines, 40 table games, and numerous food and beverage (F&B) options. Analysts believe it’s attracting younger demographics, positioning it for success.
Deutsche Bank analyst Carlo Santarelli notes that younger players between 25-35 years old are showing up at the venue. Santarelli rates Red Rock a “buy” with a $54 price target, believing it has potential for growth.
Durango Cannibalization Risk Seen as Low
Although concerns have been raised that Durango might cannibalize business from Red Rock’s Summerlin property, early visitation indicates that both Red Rock and Orleans were up year over year, demonstrating that competition from Durango may not be as significant as feared.
Boyd Gaming’s Orleans and Suncoast properties, located near Durango, could experience some pressure from Red Rock’s new venue, according to market observers.
Red Rock management has expressed confidence in Durango’s ability to be profitable from the start. Bank of America expects the property to generate close to $160 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA).
Durango Getting Las Vegas Locals Boost
Similar to other Red Rock casinos, Durango is targeting Las Vegas locals. Late-night demand for dining options is notably high, and the property is expected to attract 10,000 visitors a day, slightly below Red Rock’s daily average of 13,000.