Recent Las Vegas Slump Isn't Stopping New Development
Red Rock Resorts is moving forward with ambitious new development plans despite recent softening in the Las Vegas market. Appearing before the Nevada Gaming Control Board for licensing on Wednesday, company EVP and CFO Stephen Cootey outlined a series of upcoming projects while emphasizing the city's long-term growth prospects.
LISTEN TO THIS ARTICLE:Cootey told regulators that Las Vegas continues to stand among the fastest-growing cities in the world. He noted that Nevada has been the third fastest growing state over the past two decades and highlighted that 40% of new residents coming from California bring higher income profiles and increased spending power.
Related: Vegas Casino Layoffs on the Rise amid Revenue DeclineCootey added that Clark County's median household income is expected to rise 7.1% over the next five years, underscoring the strength of the regional economy.
Population growth is being supported by a diversified job market, with Las Vegas adding 76,000 jobs in the last three years at a pace exceeding the national average. Cootey said Nevada's stable tax structure and regulatory environment make it an ideal location for continued business development, providing certainty for investors and operators alike.
Red Rock currently operates 19 properties across the Las Vegas valley, with seven large-scale resorts located in higher-income growth corridors along major highways. The company also holds six development properties. According to Cootey, 70% of the county's population growth will occur within three miles of an existing Red Rock casino or development site, creating a strong geographic advantage.
The company sees itself primarily as a developer and views new projects as central to its strategy. Cootey pointed to the Durango property, which opened in December 2023, as a validation of the long-term approach. Red Rock owns more than 450 acres of land in the Las Vegas valley and eight additional acres in Reno, which will be used depending on economic conditions and the company's financial position.
Currently, three development projects are underway. At Durango, Red Rock is pursuing a master-planned expansion that will include additional casino space, new food and beverage venues, and more hotel rooms. Cootey described the long-term vision as resembling a large-format integrated resort with broader amenities.
The second project is a large-scale resort planned for 123 acres on Las Vegas Boulevard. Still in its conceptual phase, the project is expected to be roughly the size of Red Rock Casino Resort and will be developed in phases, similar to how earlier properties were expanded.
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West Henderson to Also See New Development
The third site, covering 63 acres, is located in west Henderson within the Inspirada master plan near the M Resort. All three projects are under active consideration, and Cootey said announcements will be made to the public soon. He stressed that Red Rock's full ownership of its real estate provides flexibility and competitive advantages, particularly during challenging economic conditions.
In addition to new developments, the company is investing heavily in renovations and expansions of existing properties. At Durango, Red Rock is spending $120 million to add 25,000 square feet of casino space, including a high-limit slot room, bar, and a new parking garage with nearly 2,000 spaces.
The project is set to be completed in December. At Green Valley Ranch, a $200 million upgrade is modernizing guest rooms and convention space, with most work expected to finish by the end of this year and the remainder by early 2026. Sunset Station is undergoing a $53 million renovation that will update its casino floor and introduce new dining options, with completion scheduled for 2026.
Cootey said Sunset Station is receiving its first major update in three decades in response to new competition from Boyd Gaming's Cadence Crossing, as well as significant growth in the Cadence community. He added that Green Valley Ranch's room product is being upgraded to match the success seen in other areas of the property, following earlier investments in gaming and dining amenities.
Red Rock's financial performance has provided strong momentum for these initiatives. The second quarter of 2025 was the strongest in the company's 49-year history, driven by record net revenue and adjusted earnings. It was the eighth consecutive quarter of record net revenue and the fourth straight record for adjusted EBITDA.
Gaming produced the highest revenue and profitability ever recorded by the company, while hotel operations delivered their best second-quarter performance. Food, beverage, and catering operations also approached record levels.
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