The executive vice president and chief financial officer of Red Rock Resorts told Nevada regulators Wednesday that the company will announce future development projects in the near future.
Stephen Cootey said Las Vegas will continue to be one of the world’s fastest growing cities.
“Nevada has been the third fastest growing state in the past two decades,” Cootey told the Nevada Gaming Control Board, while appearing for licensing. “Most notably, 40% of the new residents from California bring a higher income profile and greater spending power. The median household income in Clark County is expected to rise 7.1% over the next five years.”
A diversified job market is supporting the population growth and Las Vegas added 76,000 jobs over the last three years, faster than the national average, Cootey said. Nevada has a stable gaming tax and regulatory environment which makes it a perfect place to do business, Cootey said.
Red Rock has 19 properties in the fastest growing areas in the Las Vegas valley, Cootey said. The seven large-scale properties are situated in higher-income and higher-growth corridors along major highways. There are six development properties. “At the end of the day, 70% of Clark County’s population growth will be within three miles of one of our casinos or development sites.”
According to Cootey, Red Rock continues to have grand ambitions and consider themselves a development company. “Durango continues to validate that long-term strategy,” he said of the property that opened in December 2023.
Red Rock owns more than 450 acres in Las Vegas valley and eight in Reno. They will go forward with projects based on economic conditions and balance sheets. “We’re currently working on three projects simultaneously,” Cootey said.
The first is the continued master-plan development at Durango, by adding more casino space and food and beverage outlets and making it resemble a large-format integrated resort with more amenities. More hotel rooms will also be added.
The second project under consideration is on 123 acres just east of I-15 and south of the South Point Hotel Casino on Las Vegas Boulevard.
“It’s still in the conceptual stage and roughly going to be it’s the size of Red Rock (Casino Resort),” Cootey said. “We would start in phases and build out like what they did at Red Rock, Green Valley, and now at Durango.”
The third is a 63-acre site in west Henderson in the Inspirada master plan near the M Resort.
“These resorts are our sole focus and we should be ready to announce something very soon to the public,” Cootey said. He noted that Red Rock owning all of its real estate provides flexibility and a competitive advantage that’s been seen in the downturn amid the pandemic.
Red Rock is also investing in three major projects at this time: the Durango in the southwest valley and Sunset Station and Green Valley Ranch in Henderson.
At Durango, the company is spending $120 million to add 25,000 square feet of casino space, including a high-limit slot room and bar, and building a new parking garage with nearly 2,000 spaces. The work will be completed in December.
Green Valley Ranch is undergoing a remodeling of its rooms and meeting and convention space. Most of the work will be completed by the end of the year with some in the first quarter of 2026. The total cost is $200 million.
Sunset Station’s $53 million renovation includes new food and beverage offerings and a renovated casino floor. The work will be completed in 2026.
“Sunset Station hasn’t been remodeled or refreshed in 30 years,” Cootey said in response to a question on how work is determined. “We now have a new competitor entering the market with Boyd (Cadence Crossing replacing Jokers Wild). We also see the massive growth in Cadence and thought the time was right to reinvest in the property. Green Valley Ranch’s room product hadn’t been remodeled. We did the high-limit room, slot rooms and several restaurants, and this is making the room product match the success we see on the podium.”
Red Rock Resorts is in a good place, Cootey said. The second quarter was the strongest in its 49-year history, driven by record net revenue and adjusted earnings and near-record adjusted earnings margins.
“This marked our eighth consecutive quarter of record net revenue and our fourth consecutive record of adjusted EBITDA, which shows the power of the business model,” Cootey said. “When you dig into the second quarter, gaming generated its best revenue and profitability in the history of the company. The hotel segment delivered its best second quarter revenue and profitability, enabling us to drive (average daily room rates) and occupancy. Food and beverage and catering, not to be outdone, had a near-record.”
