Renovations for new-look Palms remain on schedule

A view of renovation work on the Palms marquee sign Thursday, Feb. 22, 2018.

Red Rock Resorts in the first quarter of 2018 saw its highest financial returns for Las Vegas operations in a decade, drawing $395.2 million in net revenue and an adjusted earnings of $125.9 million before interest, taxes, depreciation and amortization.

The milestone quarter, which includes all of the Station Casinos properties and the Palms, were the highest since 2008, said Steve Cootey, executive vice president and chief administrative officer for Red Rock Resorts, during its first-quarter earnings call.

“This is despite the negative impact of ongoing construction of both the Palace Station and the Palms,” Cootey said.

The Palms renovation project remains on schedule with the first phase slated to be open later this month. The elements include a renovated casino floor, with addition table games and slot machines, new high limit rooms for slot and table games, a new VIP registration lounge, Scotch 80s Prime steakhouse, Apex Social club, Camden Cocktail Lounge and the Unknown, the property’s new center bar.

The Fantasy Tower, other room renovations and two new signature restaurants are expected to be complete by the end of the year.

The remaining phase's two components are expected to open in the second quarter of 2019, with phase three of the project expected to open by the fourth quarter of 2019. As of March 31, the company has incurred $152 million in costs in the $620 million project.

The Palace Station modernization project is on schedule and budget, with the company incurring $116 million in costs against the $191 million project. Key upgrades, including the renovated casino floor, new buffet and two new restaurants, are ahead of schedule and expected to be completed by the end of the third quarter.

The Palace Station project is expected to be completed by the end of 2018. The construction disruption is expected to be in the lower end of the estimated $10-15 million for 2018, Cootey said. The disruption will run about $2.5 million per quarter.

“We continue to be very excited about these opportunities and the significant returns we expect to generate upon completion,” Cootey said.