Red Rock Resorts sets investment plans for resorts and renovations

Red Rock Resorts is preparing to advance three new resort projects in Southern Nevada, with executives telling regulators the company will soon announce details of developments in Las Vegas and Henderson.

Stephen Cootey, Executive Vice President and Chief Financial Officer, outlined the pipeline during a licensing hearing with the Nevada Gaming Control Board, as reported by CDC Gaming. He said the projects will proceed based on market conditions and the company’s balance sheet.

Development sites and plans

The first project involves the continued master-plan buildout at Durango, which opened in December 2023. Plans include additional casino space, food and beverage outlets, more hotel rooms, and amenities to resemble a large-format integrated resort.

A second project is being considered for 123 acres east of I-15 and south of the South Point Hotel Casino. “It’s still in the conceptual stage and roughly going to be it’s the size of Red Rock (Casino Resort),” Cootey said. “We would start in phases and build out like what they did at Red Rock, Green Valley, and now at Durango.”

The third site covers 63 acres in west Henderson’s Inspirada master plan near the M Resort. “These resorts are our sole focus, and we should be ready to announce something very soon to the public,” Cootey said.

Ongoing investments

In addition to new developments, Red Rock is investing in three existing properties. At Durango, $120 million is being allocated for 25,000 square feet of additional casino space, a high-limit slot room, a bar, and a new parking garage with nearly 2,000 spaces. Completion is expected in December.

Green Valley Ranch is undergoing a $200 million renovation of rooms and meeting and convention space. Most of the work is set to finish by the end of this year, with the remainder in early 2026.

Sunset Station in Henderson is undergoing a $53 million project that includes new dining options and a renovated casino floor, scheduled for completion in 2026. “Sunset Station hasn’t been remodeled or refreshed in 30 years,” Cootey said, citing increased competition and population growth in the Cadence community.

Market and financial context

Cootey said Nevada has been the third fastest-growing state over the past two decades. He noted that 40% of new residents moving from California bring higher income levels and greater spending power. The median household income in Clark County is projected to rise 7.1% in the next five years. Las Vegas also added 76,000 jobs over the last three years, a pace faster than the national average.

Red Rock operates 19 properties across the Las Vegas Valley, with seven large-scale resorts and six development sites. The company owns more than 450 acres of land in the Las Vegas area and eight acres in Reno. “At the end of the day, 70% of Clark County’s population growth will be within three miles of one of our casinos or development sites,” Cootey said.

Financial performance

Cootey said the company recorded its strongest second quarter in its 49-year history, citing record net revenue, adjusted earnings, and gaming revenue.

“This marked our eighth consecutive quarter of record net revenue and our fourth consecutive record of adjusted EBITDA, which shows the power of the business model,” Cootey said. “When you dig into the second quarter, gaming generated its best revenue and profitability in the history of the company. The hotel segment delivered its best second-quarter revenue and profitability, enabling us to drive average daily room rates and occupancy. Food and beverage and catering, not to be outdone, had a near-record.”