Expansion Plans for Red Rock's Durango Project Revealed, Including a $120 Million Investment and a Special Dividend Declaration

Expansion Plans for Red Rock's Durango Project Revealed, Including a $120 Million Investment and a Special Dividend Declaration

Title: Red Rock Resorts Amps Up Durango Casino & Resort Expansion, On Track to Deliver High-Margin Property

Published: May 2, 2025, 01:52h.Last Updated: May 2, 2025, 01:53h.

Authored by: Todd Shriber @etfgodfatherCategories: Financial, Gaming Business, Mergers & Acquisitions

Red Rock Resorts (NASDAQ: RRR) has been pushing forward with its expansion of the Durango Casino & Resort in Southwest Las Vegas, announcing a special dividend for investors to sweeten the deal.

With construction well underway, this $120 million project is expected to conclude ahead of schedule, adds over 25,000 square feet of casino space, and becomes a high-margin jewel in Red Rock's Las Vegas-only portfolio.

The expansion includes:

1. A new high-limit slot area with a bar
2. An expansive, nearly 2,000 space parking garage
3. 230 new slot machines, with 120 earmarked for the high-limit room

Disruptions on the south side of the property have caused minor complications, but Red Rock is taking "proactive steps to minimize guest impact." The operator expects to finish construction by the end of December 2025[1][2][5].

Durango's Current Success

Opened in December 2023, the $750 million Durango Casino & Resort is Red Rock's newest property. Its success in Southwest Las Vegas — a rapidly developing region previously underserved by casinos — is notable[2].

There were initial concerns about cannibalization, particularly with Red Rock's namesake property in Summerlin, but analysts are hopeful the situation will resolve over time[3]. Truist Securities analyst Barry Jonas comments, "Durango has continued to grow the Locals market and drive incremental play from the RRR customer base."

What's Next for Red Rock

Red Rock is preparing for other ventures outside of Durango. In Henderson, renovations are advancing at the Green Valley Ranch Resort Spa & Casino, with improvements coming to convention space and guestrooms[2]. All rooms are projected to be available by the end of this year. Moreover, upgrades are in progress at Sunset Station in Henderson.

Cootey explained, "At our Sunset Station property, we are building up the success we are seeing with our recently renovated race and sportsbook and partial casino remodel by continuing to refresh the podium in order to better position the property to capture the continued growth in Henderson, including the master planned communities of Skye and Cadence, which are expected to total over 12,500 households upon final completion of both communities."

Red Rock's Special Dividend

Beyond its regular 25 cents per share quarterly payout, Red Rock announced a special dividend of $1 per share. Payable on May 21, the dividend marks Red Rock's fourth time granting a special dividend within the past five years[4].

Issued capital from Red Rock's management of the North Fork Mono Casino & Resort in Madera, Calif., partly funds this special payout, which is scheduled to open next year[5][4]. Other factors that boost investor interest in Red Rock stock include the company's substantial real estate holdings, which it values at approximately $2 million per acre on average compared to investors' current estimates[5].

Sources:

1. Yahoo Finance: Red Rock Resorts Announces Plans to Expand Durango Casino & Resort
2. CNBC: Red Rock Resorts Unveils Details of Durango Casino & Resort Expansion
3. Hotel Management: Red Rock Resorts Focuses on Locals Market with Durango Casino & Resort
4. InvestorPlace: Red Rock Resorts announces $1 per share special dividend as revenue surges
5. Business Insider: Red Rock Resorts's Real Estate Investments to Boost Share Price, Analysts Claim
6. Red Rock Resorts, a commercial gaming company based in Las Vegas, is expanding its Durango Casino & Resort in Southwest Las Vegas, dubbed as a high-margin jewel in Red Rock's portfolio.
7. The Durango expansion includes a new high-limit slot area with a bar, an expansive parking garage, and 230 new slot machines, with 120 for the high-limit room.
8. The Las Vegas-based company provides shares in NASDAQ under the ticker symbol RRR and offers a regular 25 cents per share quarterly payout, with a recent announcement of a special dividend of $1 per share.
9. Red Rock Resorts' financial success is evident in the growth of the Locals market and the continued play from its customer base, as noted by Truist Securities analyst Barry Jonas.
10. The company is also remodeling the Green Valley Ranch Resort Spa & Casino and Sunset Station in Henderson, with all rooms projected to be available by the end of the year.
11. In the rapidly developing region of Southwest Las Vegas, the Durango Casino & Resort has seen significant success since its opening in December 2023, overshadowing initial concerns about cannibalization.
12. Red Rock Resorts is known for its substantial real estate holdings, particularly in the casino-and-gambling industry, which have boosted investor interest and have values estimated at approximately $2 million per acre on average.

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