Red Rock Resorts Expands Durango Casino with New Amenities and 275,000-Sq-Foot Addition
Red Rock Resorts has unveiled a major expansion for its Durango Casino & Resort in southwest Las Vegas.
LISTEN TO THIS ARTICLE:The company said the $385 million project comes less than two years after Durango opened and follows another quarter of record financial performance. Stephen Cootey, Red Rock’s executive vice president and chief financial officer, told Wall Street analysts the operator posted its highest third-quarter net revenue and adjusted EBITDA in company history, marking the ninth straight quarter of record net revenue and the fifth consecutive quarter of record adjusted EBITDA.
Red Rock said it is already completing a separate $120 million phase that will add roughly 25,000 square feet of casino space – including a high-limit slot room and bar – and a nearly 2,000-space parking garage, scheduled to finish in late December. That work, Cootey said, has helped Durango attract new guests and generate additional play from existing customers.
Looking ahead, the announced expansion will add about 275,000 square feet in a second phase, bringing in roughly 400 new slot machines and a suite of amenities aimed at both locals and day visitors: a 36-lane bowling center, a multiplex movie theater, new dining outlets and dedicated entertainment venues. Construction on this larger phase is expected to begin in January and take approximately 18 months to complete.
br>“With this phase nearing completion, we’re now turning our attention to the next phase of Durango’s master plan. Upon completion, we believe the property will be better positioned to capture additional market share and drive sustained growth in the local market, which is expected to add more than 6,000 new households within a three-mile radius of the property over the next few years.”
Board Vice Chairman Lorenzo Fertitta framed the expansion as a measured response to local demand: “We expect similar returns on the expansion that we’ve gotten so far on the initial build.” Citing the strength of the market, Fertitta said adding capacity will draw more foot traffic and lift returns across the property.
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Red Rock executives stressed that Durango’s timing and scale were driven by market fundamentals and the site’s readiness. President Scott Kreeger noted the company prioritized the Durango plan because it was shovel-ready, while other projects in west Henderson and along Las Vegas Boulevard South remain in earlier planning stages. “That doesn’t slow us down in our master planning, entitlement, or cost analyses of the other projects”, Kreeger said.
The Durango expansion comes amid mixed signals on the Las Vegas Strip. Cootey told analysts that softness on the Strip has not materially affected the locals market and argued that Red Rock’s value proposition continues to appeal to both in-market and visiting customers. Kreeger added that the company’s average daily room rates have outperformed the Strip by about 25% recently, reinforcing the business case for increased capacity.
Executives declined to offer a detailed estimate of potential short-term financial disruption from the new construction, saying cost and timing remain under review. They did, however, say adding hotel rooms at Durango remains in scope as part of the master plan.
An industry analyst familiar with Southern Nevada development noted the project reflects a broader trend of suburban casino operators expanding amenities to capture spillover demand from the Strip and to serve growing residential catchments. “Developers are placing more emphasis on destination-style amenities – bowling, cinemas and experiential dining – to extend guest stays and boost non-gaming revenue”, the analyst said.
Red Rock’s announcement highlights how regional gaming operators are recalibrating growth strategies as Las Vegas diversifies beyond the Strip. For Durango, the new investment is aimed at converting recent top-line momentum into longer-term market share and local loyalty.
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