n the same day Red Rock Resorts announced the sale of Palms Casino Resort, executives announced the company will begin work on a new casino-hotel project next year in the southwest valley.
The firm expects to break ground on its South Durango Drive casino early next year, Station Casinos CEO Frank Fertitta III said Tuesday on an earnings call with investors. The proceeds from the Palms sale could “accelerate the development” of the Durango project, he said.
Fertitta said the area is ripe for a casino, with little competition within 5 square miles and a growing population. He offered little detail on “the timing and scope of that project” but said he expected to share more by its second-quarter earnings call.
“The demographics are working towards our advantage, given the migration we are seeing from the other states where people want to avoid regulations, taxation and look to move to a great state like Nevada, where there is opportunity,” he said.
The property at South Durango and the 215 Beltway has been in the works for two decades.
Furthermore, Red Rock Resorts on Tuesday reported net revenues of $352.6 million for the first quarter of 2021, a decrease of 6.6% year-over-year, primarily due to the ongoing impacts of the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down 21.1%.
Net loss was $106.6 million, an improvement of $71.2 million. Adjusted EBITDA climbed 110.8% to $156.6 million for the first quarter of 2021.
Net revenues from Las Vegas operations dropped 3.8% year-on-year to $342.8 million. Adjusted EBITDA from this segment saw an increase of 134.6%. If compared to the same period of 2019, Adjusted EBITDA was up 19.2%.
During the first quarter, the parent company of Station Casinos kept developing a phased reopening program, with its first-to-reopen properties of Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire Properties.