THIS WILL MAKE THE BAPTISTS HAPPY

Four Station Casinos properties in Las Vegas may never reopen after pandemic closure

 

By Ed Komenda

 

Reno Gazette Journal

August 5, 2020

LAS VEGAS – There’s a chance four Station Casino resorts in southern Nevada have closed for good.

Frank Fertitta III, CEO of Station's parent company, Red Rock Resorts, revealed in an earnings call Tuesday that the company is uncertain whether Texas Station, Fiesta Henderson, Fiesta Rancho and the off-Strip Palms will reopen in the wake of COVID-19.

“We don’t know if – or when – we’re going to reopen any of the closed properties,” Fertitta said. “We think it’s too early to make that decision at this time.”

Station Casinos had closed 20 properties in southern Nevada for almost three months following Gov. Steve Sisolak’s sweeping shutdown order in March.

Before deciding whether to reopen the properties, Red Rock’s Chief Financial Officer Stephen Cootey said the company must learn whether data shows healthy demand at reopened resorts.

"So far, we're very pleased with results that we've had, the ability to move some of the play from the closed properties to our existing properties, and we're going to continue to try to get clarity and navigate the situation to make well-informed decisions," Fertitta said, "but whatever decisions we make will be in the best interest of shareholder value."

Red Rock Resorts reported net second quarter revenue of $108.5 million – a drop of 77.5% from the $482.9 million collected in the same quarter of 2019.

The company’s net loss was $118.4 million. In the second quarter of 2019, the company recorded a loss of $7.1 million. Revenue at Red Rock’s Las Vegas properties alone dropped $356.7 million year over year.

While the company has held off reopening the four properties now in question, several others have opened in recent weeks: Red Rock, Green Valley Ranch, Santa Fe, Boulder Station, Palace Station, Sunset Station and Wildfire.

Red Rock Resorts' grim earnings report follows similar news from Las Vegas competitors. 

A sustained shutdown of MGM Resorts properties in the wake of COVID-19 contributed to a second quarter operating loss of $1 billion.

Citing the disappearance of convention business on The Strip, Las Vegas Sands reported second quarter loss of almost $1 billion.

"We're in a world of hurt here in terms of Las Vegas," Las Vegas Sands President and COO Rob Goldstein said in an earnings call. "I've never felt more gloomy than I do today about what's happening in Las Vegas."