Posted on: November 7, 2023, 05:18h.
Last updated on: November 7, 2023, 05:18h.
Red Rock Resorts (NASDAQ: RRR) announced today that it is pushing back the opening of the Durango Casino and Resort — the newest addition to the operator’s Las Vegas portfolio — to Dec. 5 from Nov. 20.
The Nov. 20 opening of the $750 million Durango in Southwest Las Vegas was mentioned by Red Rock several months ago. No reason was given for the delay. The new opening date is still well in advance of the Super Bowl in February, indicating the venue could potentially benefit from overflow traffic from the Strip during that event.
We continue to prepare for the scheduled opening of our Durango Resort, which we have now moved to December 5, to ensure a first-class opening of the property,” according to a xeet (tweet) on Durango’s X, formerly Twitter, feed.
The casino will feature 73,000 square feet of gaming space, a sportsbook, 2,000 gaming machines, and 40 table games. Despite the delay, Durango is still accepting reservations.
Reasons Abound for Delayed Durango Opening
Las Vegas-based Red Rock delivered third-quarter results today, telling analysts and investors it earned 60 cents a share on revenue of $411.6 million during the July through September period. Analysts expected earnings of 39 cents on sales of $412.2 million.
A statement issued by the Stations Casino parent didn’t mention Durango or reasons for postponing the debut of the integrated resort, though that was likely a topic of discussion on the Red Rock conference call with analysts.
It’s possible that either raw materials shortages, a tight labor pool or both are culprits in delaying the opening of Durango. Red Rock is attempting to fill up 1,200 roles at the new casino hotel.
In addition to its namesake venue in Summerlin and the Green Valley Ranch in Henderson, Red Rock operates multiple gaming properties under the Station brand throughout the Las Vegas area. The company also runs 10 Wildfire casinos, including seven in Henderson, according to its website.
Delay Doesn’t Dent Durango Thesis
Postponing the debut of Durango by barely more than two weeks doesn’t dent the potentially attractive long-term outlook for the property and its ability to bolster Red Rock’s top and bottom lines. Namely, the venue is situated in Southwest Las Vegas — a rapidly growing corner of the city that currently isn’t saturated with gaming venues.
Durango will feature a large hotel and given its proximity to the Strip, it could be positioned to capture business and leisure visitation among travelers that want to avoid the Strip or are seeking better pricing during Sin City’s busy periods.
Red Rock is one of the largest operators in the Las Vegas Valley, despite not owning a Strip integrated resort. Additionally, the company is looking to double its footprint in its home city over the next decade, indicating it’s bullish on the trajectory of the Las Vegas locals segment.
