Red Rock Resorts is ready to start a new project. During an earnings call this week, Station Casinos CEO Frank Fertitta III stated that early next year, a ground-breaking ceremony will hopefully take place for a new casino on South Durango Drive. Little information was provided on the subject, but more should be revealed by the next earnings call.
South Durango Property
The Red Rock property was first purchased back in 2000 and is 71 acres of land located at Durango Drive and the 215 Beltway. For twenty+ years now, the company has been working towards opening a casino there. Back in 2008, Red Rock Resorts had plans to start with a hotel tower and conference area but failed to get started.
This week, Fertitta stated during the earnings call that the area is perfect for a casino, as the population is growing nearby and there is very little competition right now. The CEO commented that the company is focused on the scope of the project right now and defining what will be created.
The property will provide slots and table games along with restaurants. It will not house the typical buffet-style dining that casinos are known for. Executives of the company are still trying to figure out the final cost of the project.
After the details of the earnings call came out, analysts in the gaming industry began to provide input. Macquarie Capital analyst, Chad Beynon, said that the region has always had a strong demand for casino gaming as there is an absence of a high-quality product.
Others agree. Analysts pointed out that with development, the southwest region of the valley will start to see more growth. If Red Rock can accelerate its project, it would help to solidify its position in the local market.
The news comes at the same time as Red Rock Resorts announced it is selling the Palms Casino. The company has decided to offload the property to the San Manuel Band of Mission Indians to the tune of $650 million. The proceeds from the sale will help to push the Durango project development forward.
The Palms Casino Resort was first opened on the Strip in late 2001 by George Maloof. It was purchased by Red Rock Resorts Incorporated in 2016 for just over $312 million. The company then completed a $690 million renovation to the property and created two-story rooftop villas.
The casino then closed due to the COVID-19 pandemic and struggled like the rest of the industry. The casino remains closed today as the officials of the property were not ready to reopen until it saw a demand for services.