The Durango Casino & Resort that opened in December 2023 helped boost Red Rock Resort’s fourth-quarter revenue and adjusted earnings as part of a trend for the entire calendar year, the company reported Tuesday.
Net revenue from Las Vegas operations was $492.6 million for the fourth quarter of 2024, an increase of 7.2% or $33.3 million from $459.4 million in the same period of 2023. Adjusted EBITDA from Las Vegas operations was $223.9 million for the fourth quarter of 2024, an increase of 1.6% or $3.6 million from $220.3 million in the same period of 2023. The adjusted EBITDA margin was 45.4%, a decrease of 250 basis points.
Revenue from Las Vegas operations was $1.93 billion in 2024, an increase of 12.6% or $216.2 million from $1.71 billion in 2023. Adjusted EBITDA from Las Vegas operations was $879.4 million in 2024, an increase of 7.4% or $60.5 million from $818.8 million in 2023. The adjusted EBITDA margin was 45.7%, a decrease of 222 basis points.
Steven Cootey, the company’s executive vice president and chief financial officer, called the fourth quarter “another strong one for the company by all measures.” Las Vegas achieved its highest fourth quarter in revenue and adjusted EBITDA in history, while maintaining near-record adjusted EBITDA margins.
Prior to the pandemic, margins were 36% during the fourth quarter.
“For the year, our Las Vegas operations delivered their best performance ever in terms of net revenue and adjusted EBITDA, while achieving near-record adjusted EBITDA margins,” Cootey said. “In addition to showing strong financial results, we continue to be pleased with the financial performance of Durango Casino Resort. Durango continues to grow the Las Vegas locals market, as the team continues to execute to improve the property’s performance, at the same time as driving incremental play from our existing customers and attracting new customers to our brand.”
With a full year of results reported, Cootey said the property continues to increase visitation from carded customers in the surrounding area of southwest Las Vegas, while signing up more than 85,000 new customers to its database.
“As the property continues to ramp up, it remains on track to become one of our highest-margin properties, as well as generate a return of almost 16% net of cannibalization in 2024,” Cootey said. “Cannibalization is tracking as expected, mainly affecting our Red Rock property, and like we’ve seen in the past, we expect to backfill this revenue in the next few years, given the strong long-term growth in the Las Vegas valley, especially in Summerlin and Downtown Summerlin. Both are expected to bring in around 34,000 new households.”
Red Rock Resorts started construction on its Durango expansion in December to add more than 25,000 square feet of casino space, including a new high-limit slot area and bar. Some 230 slot machines will be added, with 120 dedicated to the high-limit room. The company is also constructing a parking garage with nearly 2,000 spaces, which would provide customer access and flexibility for future expansion.
The project has a budget of about $120 million and is expected to be completed in January 2026. That will cause disruption on the south side of the property.
Cootey said achieving 16% cash-on-cash return in the first year of Durango is a great start, as they push for a 20% return going forward.
With the arrival of 2025, Cootey said the company remains focused on core local guests and continuing to grow regional and national segments across its portfolio.
Comparing the fourth quarter of 2023, he said they continue to see strong carded slot play across the database, including regional and national segments. That helped achieve record revenue and profitability in its gaming segment in the quarter, despite the market experiencing an unfavorable sports hold, he said.
“As we turn to the first quarter, we’re seeing stability in our slot and table business in the locals market and across our carded database. We remain confident in our business prospects moving forward.”
Both hotel and food and beverage continue to grow year-over-year and drove near record revenue and profitability in the fourth quarter, Cootey said. The hotel segment recorded its highest fourth quarter revenue and near-record profit given their ability to drive occupancy across the portfolio. The food and beverage division also had its highest fourth-quarter revenue and near-record profit.
The group and catering business faced tough fourth-quarter comparisons, but Cootey said they’re seeing positive momentum in both of those business lines.
Red Rock invested $26 million in capital spending in the fourth quarter, including $16.8 million relating to Durango and $9.2 million in maintenance. It spent $283.9 million during the year, including $172.3 million for Durango and $111.6 million in maintenance.
For 2025, Cootey said they expect to spend between $375 and $425 million, including $285 million to $325 million in investment capital and $90 million to $100 million in maintenance capital.
Red Rock is also investing in Sunset Station and Green Valley Ranch in Henderson in 2025. Sunset Station is adding a new country-western bar and nightclub, Mexican restaurant, and center bar, and renovated casino space at a cost of $53 million.
At Green Valley Ranch, Red Rock will begin a refresh of the rooms and suites, as well as convention space. Work will start in June with the majority of rooms expected back online by the end of the year. The cost of the room and convention renovations is about $180 million.
Red Rock President Scott Kreeger said the disruptions caused by all the work in 2025 will cost a combined $25 million, but the company will see incremental growth as the investments come online.
Kreeger said they’ve gone back and forth on developing its gaming-entitled land in Reno, but are focusing on Las Vegas for now. They would even consider selling the land if they get an attractive offer.
Red Rock has opened two taverns in the Las Vegas valley in recent months and plans to open six more in 2025.
