Red Rock Resorts said that it is looking forward to the development of its Durango Station casino as well as five other locations in the future.
During Tuesday’s third quarter earnings call, Red Rock CFO Steve Cooley said that his company is ‘extremely excited’ about the project. Cooley also revealed that construction will begin during the first quarter of 2022 and will take 18 to 24 months to complete.
No competition in the Location
The resort will be constructed on the 71-acre site at the 215 Beltway and Durango Drive which is passed by 166,000 cars daily. Within its five-mile radius is a population of 350,000 residents with no competition in the location.
It will have a total area of 533,000 square feet including 73,000 square feet of gaming space which will house 2,000 slot machines and 46 table games. The property’s hotel will have 200 rooms, 21,000 square feet of convention and meeting area, four full-service restaurants, a resort pool, and a sportsbook.
According to Cooley, the customers are a “favorable demographic profile”. The Red Rock executive also added that he expects the financial return of the Durango property to surpass the company’s overall average return, with twice the number of adults per gaming position than its Red Rock Station and Green Valley Ranch.
$750M Project Cost
The project will have an estimated total cost of $750M which will cover design, construction, and opening expenses. Cooley said construction costs have risen but they are confident that they have covered everything in the $750M budget. The cost will be paid for by cash flow and in part by a land sale.
Red Rock plans to sell 23 acres behind the Durango property for $24M to developers who are looking to build apartments or condominium units which Red Rocks says would even bring more customers to the casino.
The company also plans to close its sale of its Palms and Palms Place condominiums to the San Manuel Band of Indians for $650M by the end of this year. The Palms and three of Red Rock’s other Las Vegas properties remain closed while six have reopened since their closure in 2020 due to the pandemic.