Operator News
US – Red Rock to accelerate Palms redevelopment
By Phil - 1 March 2018
Red Rock Resorts has confirmed it is ‘accelerating the third phase of its redevelopment plan for the Palms, as part of its transformation of the property into a “must see” gaming and entertainment destination.’
The key components of this phase will include: a casino floor expansion featuring 300 new slot machines and 16 table games; an authentic Hong Kong-style Dim Sum restaurant; a casino connector seamlessly integrating the adjacent 599 room Palms Place and the existing self-park garage into the property; collaborations with world-class contemporary artists throughout the property; and state-of-the-art digital signage on the hotel exterior.
The property already boasts nightlife such as Ghost Bar, pictured.
The total budget for the Palms redevelopment, including construction costs, capitalized interest, and pre-opening expenses, is now expected to be approximately $620m. As of December 31, 2017, the Company has incurred $77m in costs against the project. The project is expected to open its first phase in the second quarter of 2018, with components of the second phase to open throughout the first and second quarters of 2019 and phase three to open in the fourth quarter of 2019.
The company added that its Palace Station project remains on schedule and the budget remains unchanged. As of December 31, 2017, the company has incurred $80m in costs against that $191m project. The Palace Station project is expected to be completed in phases by the end of 2018.
Red Rock highlighted that the decrease in its net revenues for the fourth quarter was primarily due to substantial ongoing construction disruption at Palace Station and the Palms Casino Resort.
Net revenues came in at $394m for the fourth quarter, a decrease of 0.1 per cent For the full year, net revenues were $1.62bn in 2017, an increase of 11.2 per cent, or $163.2m, from $1.45bn for the same period of 2016 due to the acquisition of the Palms, a $41.8m increase in same-store Las Vegas operations and a $7m increase in Native American operations.
