American casino operator Red Rock Resorts Incorporated has released its financial results for 2017 showing a 59.5% decrease year-on-year in net income to $63 million primarily due to its recent acquisitions of the leases for Las Vegas’ Texas Station Gambling Hall and Hotel and Boulder Station Hotel and Casino.
Through its majority interest in Station Casinos, Red Rock Resorts Incorporated owns and manages over 20 properties across Nevada, Michigan and California including the Red Rock Casino Resort and Spa in suburban Las Vegas. It revealed that 2017 saw its corporate net revenues increase by 11.2% year-on-year to hit $1.62 billion thanks in large part to its earlier purchase of the Palms Casino Resort and Spa alongside a $41.8 million swell in same-store Las Vegas takings and a $7 million comparable bump from its two Native American operations.
Las Vegas-based Red Rock Resorts Incorporated detailed that these factors moreover helped its full-year adjusted earnings before interest, tax, depreciation and amortization reach $496.4 million, which represented a rise of 2.5% year-on-year, despite a $5.8 million comparable increase in costs. Its cash and equivalents stood at $231.5 million alongside an overall debt of $2.68 billion.
Red Rock Resorts Incorporated additionally used its financial results to update investors about its ongoing redevelopment of the Palms Casino Resort and Spa with the firm declaring that it had already incurred some $77 million of the project’s anticipated $620 million final cost.
“The company is excited to announce today that it is accelerating the third phase of its redevelopment plan for the Palms [Casino Resort and Spa] as part of its transformation of the property into a ‘must see’ gaming and entertainment destination,” read a Tuesday statement from Red Rock Resorts Incorporated.
As part of this redevelopment scheme, Red Rock Resorts Incorporated stated that the Palms Casino Resort and Spa is to have its casino floor expanded in order to make room for a further 300 slots and 16 gaming tables. It detailed that the project, which has been given a fourth-quarter 2019 deadline, will moreover see the venue add a Hong Kong-style Dim Sum restaurant alongside state-of-the-art digital signage and a ‘casino connector’ running between itself and the adjacent 599-room Palms Place Hotel and Spa.
Finally, Red Rock Resorts Incorporated explained that it had so far spent $80 million of the projected $191 million it will cost to redevelop its Palace Station Hotel and Casino in Las Vegas with this project set to be completed ‘in phases’ by the conclusion of the year.