Red Rock Resorts is set to unveil three new resort ventures in Southern Nevada, with company leaders indicating that details for developments in Las Vegas and Henderson will be revealed soon.
During a licensing session with the Nevada Gaming Control Board, Stephen Cootey, Executive Vice President and Chief Financial Officer, outlined the upcoming projects, as reported by CDC Gaming. He stated that the developments will be influenced by market conditions and the firm’s financial health.
Project Locations and Strategies
The first initiative focuses on the ongoing master planning at Durango, which commenced operations in December 2023. This includes expanding casino floors, enhancing food and beverage services, increasing hotel accommodations, and adding features reflective of a large-scale integrated resort.
The second initiative is being contemplated for 123 acres situated east of I-15 and south of the South Point Hotel Casino. “It remains in the conceptual phase and is expected to be comparable in size to Red Rock (Casino Resort),” said Cootey. “We plan to initiate construction in phases, similar to the strategies employed at Red Rock, Green Valley, and currently at Durango.”
The third location encompasses 63 acres within the Inspirada master plan in west Henderson, close to the M Resort. “These resorts represent our primary focus, and we anticipate making a public announcement shortly,” Cootey noted.
Continued Investments
Beyond new developments, Red Rock is committed to upgrading three existing facilities. At Durango, an investment of $120 million is allocated for 25,000 square feet of additional casino space, a high-limit gaming area, a bar, and a new parking garage with nearly 2,000 spots. The enhancement is slated for completion in December.
Green Valley Ranch is undergoing a $200 million refurbishment of its rooms and meeting spaces. Most renovations are expected to be completed by the end of this year, with final touches finished by early 2026.
Sunset Station in Henderson is also undergoing a $53 million upgrade, introducing new dining options and a revamped gaming floor, aimed for completion by 2026. “Sunset Station hasn’t seen a remodel or refresh in 30 years,” Cootey remarked, highlighting the growing competition and population increases in the Cadence community.
Market Context and Financial Insights
Cootey remarked that Nevada has been among the top three fastest-growing states over the last twenty years. He noted that 40% of new residents migrating from California arrive with enhanced incomes and spending abilities. The median household income in Clark County is projected to increase by 7.1% over the next five years. Additionally, Las Vegas added 76,000 jobs in the past three years, exceeding the national growth rate.
Red Rock manages 19 properties across the Las Vegas Valley, including seven major resorts and six development sites. The company owns over 450 acres in the Las Vegas area along with eight acres in Reno. “Ultimately, 70% of Clark County’s population growth is projected to occur within three miles of our casinos or development sites,” Cootey stated.
Financial Results
Cootey indicated that the company experienced its most successful second quarter in its 49-year history, reporting record net revenues, adjusted earnings, and gaming revenues.
“This achievement marks our eighth successive quarter of record net revenue and our fourth consecutive record of adjusted EBITDA, underscoring the robustness of our business model,” Cootey stated. “A closer look at the second quarter shows gaming producing its highest revenue and profit margins in the company’s history. The hotel division also recorded its best second-quarter performance in terms of revenue and profitability, allowing us to increase average daily rates and occupancy. Additionally, food and beverage and catering saw near-record results.”