Red Rock Resorts

#3390

Rank

$2.87B

MarketCap US

US United States

Country

Summary
Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company owns and operates 9 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. As of December 31, 2021, it operated approximately 13,894 slot machines, 240 table games, and 3,081 hotel rooms in the Las Vegas market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was incorporated in 1976 and is based in Las Vegas, Nevada.

History

In July 2002, Station Casinos and Howard Hughes Corporation made a deal that gave Station Casinos the option to purchase a 73-acre site in Summerlin, Nevada, at the southeast corner of the Las Vegas Beltway and west Charleston Boulevard. That month, Station Casinos announced plans to build a then-unnamed hotel-casino on the property. The company had until October 2002 to purchase the property for a total of $65 million.Station Casinos expected to complete its purchase of the land by June 2003, with construction scheduled to begin late that year or in early 2004. Construction was expected to take approximately 15 months, with a cost of more than $300 million. It would be Station Casinos' largest and most expensive resort, and would compete against the nearby Suncoast and Rampart casinos. The site was chosen over other locations that Station Casinos owned – also along the beltway in the west Las Vegas Valley – because of its location within the planned village of Summerlin Centre. Station Casinos tentatively referred to the project as Charleston Station. By April 2003, the project had been named "Red Rock Station", after the Red Rock Canyon National Conservation Area, located approximately three miles away. Like its recent Green Valley Ranch resort, Station Casinos planned for the Red Rock Station to target upscale tourists and local residents as its primary clientele.

Opposition

The project initially was to include a 23-story, 300-foot hotel tower with 1,000 rooms in its first phase, while future phases would add two 23-story, 200-foot timeshare condominium towers with 250 rooms each, for an ultimate total of 1,500 rooms. The project would require an exemption from county officials, as the land was only zoned for towers up to 100 feet . In October 2003, the project received opposition from people who believed that it would harm the quality of life for Summerlin residents and that it would destroy the views of Red Rock Canyon. Opponents also believed that the 1,500-room count was too much for the nearby residential area. Because of the opposition, Station Casinos delayed its request for approval from the Clark County Planning Commission, giving the company time to pitch the project to opponents. Station Casinos, which had been surprised by the opposition, noted that the property had been zoned for gaming for more than a decade prior. Nearby homeowners had also been informed upon purchasing their houses that the land was zoned for a potential casino project.The Culinary Workers Union, along with environmental organizations Sierra Club and The Conservation Fund, joined opponents of the project, stating that the tower would ruin the nearby views. At a cost of approximately $4,000, Culinary and the Sierra Club mailed fliers to more than 10,000 residents, urging them to tell the Clark County Commission to reject the 300-foot tower. It was the first time that the union had teamed up with an environmental group to become involved in an environmental issue. At the time, Culinary had been involved in an ongoing effort to unionize Station Casinos' 11,000 employees. Station Casinos stated that Culinary only opposed the Red Rock Station because of the company's non-union status, a claim that was denied by the union. In late October 2003, Station Casinos held an event to educate residents about the project and to answer questions. Nearly 250 people attended the event, which received a mixed reaction of opposition and support. Several days later, the Clark County Planning Commission approved the 300-foot tower.Residents continued to oppose the tower, and opponents worked to gather support in an effort to derail the project. Opposition groups sent recorded phone messages to more than 200,000 southern Nevada residents urging against the project, and rallies supporting and opposing the project were held in November 2003. By December 2003, a county voice mailbox had received 591 recorded messages since September, with 494 of the messages from opponents of the project or its tower; 97 of the messages were from supporters. The county had also received over 3,200 emails and letters, with approximately 100 of them in support of the project. That month, the Clark County Commission delayed a vote on the project until January 2004, while telling opponents and supporters to work on a compromise ahead of the vote.Station Casinos stated that a 300-foot tower was necessary to ensure that guests would have unobstructed views of the Las Vegas Strip in the event that previously approved office towers would be built nearby the project. In subsequent negotiations, Station Casinos was willing to decrease the 300-foot tower to 268 feet , while opponents would support nothing above 130 feet . Station Casinos agreed to reduce its timeshare towers to 100 feet, removing 250 rooms from the project. After weeks of negotiations, Station Casinos and Summerlin residents compromised on a 198-foot hotel tower and the complete removal of the timeshare buildings. The redesigned project was unanimously approved by the Clark County Commission in January 2004, with approval to build up to 1,000 rooms. Station Casinos stated that the redesign would increase the project's $400 million cost, with a price between $450 million and $475 million.

Construction

The Red Rock resort was built in what would eventually become Downtown Summerlin. A groundbreaking ceremony was held for the resort on April 15, 2004, with an opening scheduled for early 2006. Perini Building Company was the general contractor for the project, which was designed by Portland-based Architropolis, Las Vegas-based The Friedmutter Group, and SADI. In May 2004, the Red Rock Station passed the Clark County Commission's design review without opposition.In December 2004, despite residential opposition, the Clark County Commission approved two signs for the future resort: an 80-foot high sign with a video screen, to be built on the east side of the Las Vegas Beltway; and a 50-foot high sign, also with a video screen, to be built on West Charleston Boulevard. As of January 2005, the resort was expected to cost $475 million.On March 15, 2005, Station Casinos announced plans to begin expanding the Red Rock Station before its opening, including an increase in hotel rooms from 400 to 850. The expansion was scheduled to begin in late 2005, with completion expected by late 2006. The expansion and rising construction costs increased the project's estimated cost to $800 million, which would make it the most expensive locals casino ever built in Las Vegas. The project was topped off on March 24, 2005, at which point it was known as Red Rock Resort Spa Casino. "Resort" was added to the name instead of the usual "Station" name used with the company's other properties, in order to denote the Red Rock property's luxury image.By July 2005, the project's cost had increased to $925 million as a result of increased construction costs and design changes. An opening date of March 2006 was expected. For customer convenience, the resort was built with six entrances, two parking garages, two parking lots, and two valets. Station Casinos planned to hire 2,600 people for the Red Rock Resort, with approximately half of them expected to be transferred employees from the company's other local properties. More than 100,000 people applied for jobs at the resort during 2005.A survey prior to the opening showed only minimal neighborhood opposition to the resort. Selected audiences were allowed to tour the resort in March and April 2006, prior to its opening. Employees underwent six weeks of pre-opening training to ensure preparedness for the public opening. Restaurants were operated and each hotel room was occupied three different times during the six-week period. A total of 4,000 people spent time at the resort during the final week before the public opening, and a total of 100,000 meals had been served during the six-week pre-opening period.

Opening and operation

Station Casinos hosted 3,800 special guests at the resort on the night of April 18, 2006, prior to the public unveiling at midnight. Former Nevada governor and U.S. senator Richard Bryan attended the opening, as did Andre Agassi and officials from rival casino companies. Singer Sting held a one-hour concert at the resort's pool area as part of the grand opening celebration, which also included a six-minute fireworks show. Built at a cost of $925 million, the Red Rock Resort was Station Casinos' most expensive property. Approximately 80 percent of revenue was expected to come from local residents. Within six months of its opening, the Red Rock Resort had made $44 million in profit.The resort opened with 415 hotel rooms, approximately half of its final room count. The remaining rooms, part of an expansion to the hotel tower, were expected to be open by December 2006. The Red Rock Resort was only the second casino to open in Summerlin, after the Rampart. The 87,000 sq ft casino featured 62 gaming tables, including a 20-table poker room. The casino included nearly 3,200 slot machines, with slightly more than half of them being video poker. The casino also included a bingo room, while its sportsbook contained 213 seats and five VIP booths, with its signature attraction being three jumbo screens, measuring 18 feet by 32 feet. The sportsbook included bar service, as well as food service from the adjacent Turf Grill. The resort also featured 94,000 sq ft of meeting space, and a luxury spa. The 3-acre pool area was located in the center of the resort property, surrounded by several restaurants, clubs, and the spa. A 16-screen movie theater, operated by Regal Cinemas, opened on April 21, 2006.

As of July 2006, groundbreaking had begun on a 72-lane bowling alley, while the hotel expansion opened in January 2007. The bowling alley and an additional 1,000 spaces to a parking garage were part of a $65 million expansion, while the additional hotel rooms were included in the resort's original $925 million cost. An expansion to the resort's spa was also planned to open in early 2007, along with the new hotel rooms. The $31 million bowling alley, the most expensive in the world, opened in 2007, and included various amenities including a bar.In 2007, U.S. presidential candidate Rudy Giuliani held a campaign fundraiser at the resort. After winning the 2010 Nevada gubernatorial election, Brian Sandoval celebrated his victory at the Red Rock Resort. During late 2011, the Red Rock Resort was the only casino in Nevada to offer the "Bonus Box," the name used for cylindrical containers attached to slot machines that dispense prizes to gamblers. At the resort, the cylinders each contained $500 and were attached to 10 different slot machines as part of a field test, which was viewed favorably by customers. After winning the 2012 Nevada caucus, U.S. presidential candidate Mitt Romney held a victory party and speech at the resort. Also during 2012, a 79-year-old woman bowled a perfect 300-score game at the resort's bowling alley, becoming the oldest woman in Nevada history to score a perfect game and the second-oldest woman in U.S. history to do so.In April 2014, plans were announced for a six-month, $35 million expansion that was scheduled to be complete by October 2014. The upcoming opening of the nearby Downtown Summerlin mall prompted the resort's renovation project. The project would include the addition of a "restaurant row" along the resort building's entrance facing West Charleston Boulevard. Also planned was a new parking and drop-off area across from the mall, as well as an enhanced entrance accessible by mall shoppers. The implementation of easy customer access was inspired by two restaurants at the resort, the Yard House and Lucille's Smokehouse, which both used the same concept of easy access. There were also plans to renovate the 25,000 sq ft spa, as well as 26 hotel suites. By the time of the announced expansion, the hotel lobby and the resort's Lucky Bar had already been remodeled. In August 2015, the sportsbook removed a handful of projectors, used since the 2006 opening, and replaced them with an LED video wall measuring 18 feet high and 96 feet long.


Mission
It is our mission to provide a progressive environment in which all of our 14,000+ Team Members have an opportunity to enjoy their positions and grow in their careers, resulting in satisfied guests, thereby improving our overall fiscal performance.

Vision
Our vision for Station Casinos has been to become the premier provider of gaming entertainment for Las Vegas locals.

Key Team

Mr. Jeffrey T. Welch (Exec. VP & Chief Legal Officer)

Wes Allison (Chief Accounting Officer)

Mr. Daniel P. Foley (VP of Fin. & Investor Relations)

Mr. Scott Kreeger (Pres)

Mr. Rodney S. Atamian (Exec. VP of Devel. & Strategy)


Recognition and Awards
Red Rock Resorts has been recognized by numerous organizations including Forbes Magazine, the Las Vegas Review Journal and the Las Vegas Business Press for its excellence in customer service, hospitality, and gaming. The company was also named one of the “Best Places to Work in Las Vegas” by Las Vegas Weekly in 2010.

References
Red Rock Resorts
Leadership team

Mr. Frank J. Fertitta III (Chairman & CEO)

Mr. Robert A. Finch (Exec. VP & COO)

Mr. Stephen Cootey (Exec. VP, CFO & Treasurer)

Products/ Services
Casino, Gaming, Hotel
Number of Employees
1,000 - 20,000
Headquarters
Las Vegas, Nevada, United States
Established
1976
Company Registration
SEC CIK number: 0001653653
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
RRR
Social Media
Fri Feb 23 2024
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