Station casino managers say they are well positioned to withstand a recession if they occur because they believe that current circumstances are different than they were during previous financial declines.
Stephen Cootey, CEO and CFO of Red Rock Resorts, parent company to station, said Thursday that recession is worried that the current trade wars differ from the declines experienced during the Covid-19 crisis and the major recession in the late 2000s.
“But overall, we think of the resilience at Las Vegas Local People’s Market, especially Red Rock Resorts,” Cooty said during the company’s income call for the first quarter with investors. “And when we look back at whats be called typical recession, red rock in fact in the recessions in the early ’80s, the early’ 90s and the Early 2000s. The Customer Values Convenience, Proximity and Affordability. Slightly Different Than The Way The Strip Reacts During a recession. Combine That With Our Effect Business Model and a Strong Balance Sheet, We’re Well Positioned, We Faith, Manage through any recession. “
Capital project is ongoing
This assessment, if correct, would be helpful for Red Rock, which is carrying out a series of capital projects on its Durango, Green Valley Ranch and Sunset Station Properties.
Construction continues at the next phase of the company’s Durango Master Plan. This expansion will add more than 25,000 square meters of additional casino space, which will include a new high boundary machine area and bar. The project will introduce 230 new slot machines with 120 awarded to the Höglimitrum. As part of that phase, the company also builds a new covered parking garage with almost 2,000 spaces, which will improve the customer’s access and provide infrastructure flexibility to support future growth of the property. The total project cost is approximately $ 120 million and is currently working under a guaranteed maximum price agreement with the completion of the project expected at the end of December.
The company also invests approximately $ 200 million for a complete update of hotel rooms at Green Valley Ranch and the property’s congressional areas.
The work is expected to begin in June with the majority of rooms back in service at the end of the year.
Earlier this week, the company also announced plans to reshape Bingo Hall at Sunset Station to a Stoney’s Rockin ‘Country Restaurant, Bar and Nightclub. The company is already running Stoney’s North Forty on its sister property, Santa Fe Station.
Cannibalization is minimized
Red Rock managers also said after being open for more than a year, Durango forms to be one of the company’s most successful companies and that previous concerns about the Durango -Kannibanization of the Red Rock Resort market is behind it.
“As we have noted on previous revenue, some cannibalization has taken place mainly on our Red Rock property as a result of Durango’s opening,” Cooty said. “However, we are encouraged that revenue prefers is before the pace and early trends indicate that the worst of the cannibalization effect is behind us. In accordance with our historical experience, we continue to expect full income recovery in the next few years, supported by the strong long-standing demographic growth in Las Vegas Vegas Valley, in particular, in particular, in the case of the Vegas Valley to take up about 30 years.
In the first quarter of 2025, Red Rock reported a net profit of $ 86 million, an increase of 9.7 percent in the first quarter of 2024.
The company’s board also declared a 25-cent per share dividend that would be paid on June 30 for shareholders in record June 16, and a special dividend of $ 1 per share on Class A tribal shares paid May 21 to shareholders in record 14 May.
Contact Richard N. Velotta at rvelotta@ theplayerlounge.com or 702-477-3893. Follow @rickvelotta at X.
