Red Rock Resorts Incorporated begins construction on the Station Casino in Durango

Red Rock Resorts Incorporated, which owns and operates casinos in the state of Nevada in the western United States, is apparently getting ready to break ground on a brand-new facility that will cost $750 million and be located in the southwestern suburbs of Las Vegas.

According to a report that was released on Wednesday by CDC Gaming Reports, the move was made after the company with its headquarters in Las Vegas received all of the necessary building authorizations one month earlier. These authorizations included a mandatory sign-off from the Clark County Commission. According to the source, the future Station Casino Durango will be built on a plot of property that spans 71 acres and is located in the neighborhood of Spring Valley near the intersection of South Durango Drive and the Bruce Woodbury Beltway. This location is convenient for commuters.

Extensive entertainment:

It was reported earlier that Red Rock Resorts Incorporated had disclosed that it hopes to have opened its new Station Casino Durango venue for the region's "locals" market by the summer of 2024. The venue will reportedly consist of a 211-room hotel in addition to a casino that is 70,000 square feet in size and will offer a selection of 46 gaming tables and over 2,000 slot machines. This facility may also be considered a leader in the industry if it were outfitted with a cutting-edge sportsbook, four restaurants and bars offering full-service dining, and around 20,000 square feet of meeting and conference space.

Direct divestiture:

According to reports, Steve Cooley, who serves as the Chief Financial Officer for Red Rock Resorts Incorporated, used a conference call with analysts to reveal that the $750 million estimated price tag for his company's forthcoming Station Casino Durango development covers all of the costs associated with the design, construction, pre-opening, and financial aspects of the project. The executive allegedly further explained that the operator plans to satisfy some of these costs by selling approximately 23 acres of unused land in Spring Valley for somewhere in the neighborhood of $24 million to a private developer who is looking to build apartments, with the expectation that the completed venue will bring in a return that is greater than or equal to mid-teens.

According to reports, Cooley stated...

"We got into a contract with a guaranteed maximum price for the early phases of this project with the expectation that 70 percent of the entire project cost will be guaranteed at a maximum price during the following couple of quarters. The business anticipates that the return profile for this project will be comparable to that of the previous greenfield projects that have been included in the portfolio.

Aboriginal agenda:

In related news, during the month of December, Red Rock Resorts Incorporated successfully completed the transfer of ownership of the 703-room Palms Casino Resort to the federally-recognized San Manuel Band of Mission Indians in exchange for $650 million. This information was given by the source. In a similar manner, Cooley is said to have noted that the North Fork Rancheria of Mono Indians had recently resolved all of its outstanding federal legal hurdles to bring much-needed optimism to a plan that is to see his firm operate a new tribal casino on 305 acres of land just north of the city of Madera in the state of California. This particular plan is to see Cooley's firm operate the new casino.

It has been reported that Cooley issued a statement...

"We are continuing to make headway with our efforts for this extremely attractive project, including development and design, as well as beginning expenses with financial partners."

Fruitful financials:

According to CDC Gaming Reports, all of this information was revealed at the same time that Cooley informed analysts that Red Rock Resorts Incorporated had returned more than $700 million to shareholders over the course of the fourth quarter despite encountering "some headwinds" during the latter half of the three-month period. The CEO is said to have further indicated that his organization concluded the month of December with record-high quarterly adjusted earnings and margins as a result of connected accommodations, food, and beverage profits reaching an all-time high.

Substantial spending:

When we dug a little deeper into the numbers, we found that Cooley allegedly showed that Red Rock Resorts Incorporated had spent $26.4 million on capital expenditures over the course of the three months leading up to the end of December and $61.3 million for the full year of 2021. After that, he is said to have predicted that the operator may spend up to $500 million this year on maintenance and growth initiatives, which would include funding for the construction of the Station Casino Durango.

According to the reports, Cooley informed the analysts...

"We believe that we are uniquely positioned to capitalize on the very favorable long-term demographic trends and high barrier to entry that characterize the Las Vegas locals' market because we have the best-in-class assets and locations, as well as unparalleled distribution and scale, and our development pipeline of eight strategically located gaming properties," said the company. "With these assets and locations, as well as our development pipeline of eight strategically located gaming properties."