Summary:
- Red Rock Resorts reports record Q2 revenue of $526.3 million, up 8.2% from last year.
- The good numbers are mostly due to Durango Casino Resort’s ability to attract over 108,000 new customers.
- Whilst big names on the Strip have reported revenue declines.
While some of the biggest names on the Las Vegas Strip are seeing a slowdown, Red Rock Resorts is having quite the opposite experience.
The owner and manager of seven iconic hotel-casino properties and seven taverns exclusively dedicated to gaming in the Las Vegas Valley, Red Rock Resorts, has recently announced a new company quarterly revenue record at $526.3 million for Q2.
Best Performance in Almost 59 Years
The operator has in this way marked its best financial performance in the last five decades. The result also showcases an 8.2% increase over the same quarter last year.
Executive vice president Stephen Cootey during the company’s earnings call explained
By every measure, our Las Vegas operations delivered its highest quarterly net revenue and adjusted [earnings before interest, taxes, depreciation, and amortization] in our 49-year history
The company credits much of its momentum to Durango Casino Resort, a new southwest Las Vegas property that continues to draw in locals and visitors alike.
Durango continues to expand the Las Vegas locals’ market, drive incremental play from our existing customer base and attract new guests to the Station Casinos brand
He also highlighted important increases in terms of guest traffic, spending per visit, and gaming revenue from the nearby Durango community.
The Durango property has an impressive casino floor spread across over 83,000 square feet that packs innovative technology and a unique STN Sportsbook as an important point of attraction.
In terms of accommodation, the resort offers 200 luxury hotel rooms and suites. The signature dining alternatives featuring Nicco’s prime cuts and fresh fish, Mijo Modern Mexican, Summer House, and the popular communal hall of foods Eat Your Heart Out complete the experience.
Suburbs VS. The Strip
While the Strip is dealing with lower demand and dropping room prices, Red Rock is seeing the opposite. Namely, full video poker lounges, growing hotel parking needs, and busy restaurants.
The contrast between the Strip and the suburbs was underscored when Caesars Entertainment, during its own earnings call the same day, revealed a 3.7% dip in Las Vegas revenue year-over-year.
At one of Caesars’ flagship properties, the Flamingo, rooms are being advertised for as low as $18 later this summer, according to the company’s website.
Still, Red Rock executives attribute their success to more than new venues like Durango.
Casino Resort President Scott Kreeger explained
We’re seeing particularly strong growth in our VIP, our core customer, our regional and national customer
Kreeger further added that, for Q2, they also noticed “a considerable improvement” in “non-rewards” customers.
As the Strip navigates a bumpy patch, the excitement seems to be building farther out, where locals are packing suburban casinos and showing there’s still plenty of action off the boulevard.
About the Author
