Operator News
US – Newly renovated Palms driving footfall and revenue for Station
By Phil - 8 August 2019
Renovations at Palace Station Hotel & Casino and the Palms Casino Resort, are paying off for Red Rock Resorts with a boom in visitation to both properties driving its revenues up by 16 per cent to $482.9m for the second quarter of 2019.
Steve Cootey, Executive Vice President and CFO for parent company Station Casinos, said both venues have been attracting tourists and locals.
Mr. Cootey said: “Both of these completely transformed properties are still in the process of ramping up, and we continue to expect these investments to generate significant returns for the company over time. The property will continue to ramp faster than the market.”
“The addition of the Palms is actually increasing organic growth,” he said. “We’re pretty happy from a locals perspective. We continue to view the Las Vegas locals market as the most attractive gaming market in the United States. We remain uniquely positioned to take advantage of the ongoing growth in this extremely vibrant market.”
The Palms redevelopment project remains on schedule and the budget remains unchanged. With the exception of the Michelin-starred dim sum restaurant Tim Ho Wan (which is expected to be complete by the end of the third quarter of 2019), the project is now complete.
Net loss was $7.1m for the second quarter of 2019, a decrease of $106.2m, from net income of $99.1m for the same period of 2018. The decrease in net income was primarily due to a decrease in the fair value of derivative instruments and a prior year gain associated with the extinguishment of a tax receivable liability.
Net revenues from Las Vegas operations were $457.8m for the second quarter of 2019, an increase of 16.3 per cent or $64.1m. EBITDA from Native American operations was $22m for the second quarter of 2019, an increase of 10.9 per cent from $19.8m in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement.
