Station Casinos Closed Properties, Including Palms, Fate Up in the Air
Posted on: August 4, 2020, 07:49h.
Last updated on: August 5, 2020, 12:58h.
It’s not clear when, or even if, the four Station Casino properties in Las Vegas that are currently closed will reopen.
That’s the sentiment of high-ranking executives from Red Rock Resorts (NASDAQ:RRR), the parent company of Station Casinos, regarding the Fiesta Henderson, Fiesta Rancho, Palms, and Texas Station. Those venues remain closed while more than three-quarters of gaming properties in Southern Nevada reopened over the past two months.
We don’t know if or when we are going to reopen any of the closed properties. We think it’s too early to make that decision at this time,” said Red Rock CEO Frank Fertitta in response to an analyst’s question on the company’s second-quarter earnings conference call Tuesday afternoon.
As was reported on July 1, filings with the Nevada Gaming Control Board (NGCB) indicate the four aforementioned casinos could remain closed until June 30, 2021.
Lacking Clarity
While executives sounded a somber tone about the fate of the four casinos, Red Rock provided a breath of fresh air this earnings season, parting from the gaming industry norm in reporting better-than-expected numbers for the June quarter.
The Las Vegas-based company said it lost $1.01 a share on revenue of $108.47 million. Analysts expected a loss of $1.16 on sales of $73.63 million. Fertitta noted that the operator is pleased with reopening results thus far, noting that it’s been able to move some play from the closed properties to Station venues that are open.
However, he added Red Rock is still trying to get clarity to navigate the coronavirus climate. The clarity sentiment was echoed by CFO Stephen Cootey regarding the closed casinos.
“I think it’s too early to assess right now,” said Cootey on the call. “Right now we have very little clarity on our current economic environment. And so…Palms is currently undecided whether we are going to open it right now.”
Palms Speculation Subdued
Conjecture about the fate of the Palms, the glitziest of the four still shuttered venues, swirls from time-to-time, with the Las Vegas rumor mill kicking up speculation that Red Rock will look to sell the resort.
However, Fertitta quashed that talk following the company’s first-quarter earnings report.
This time around, analysts didn’t broach the subject of the Palms or any other Station property being sold, and the idea of divestment wasn’t mentioned by executives participating in the call.
Even if Fertitta and the team are mulling sales and keeping that idea close to their respective vests, now may not be the right time to sell. First, other Las Vegas gaming venues are for sale. Second, the casino resorts that were sold during the COVID-19 shutdown period traded at rock-bottom price tags. That was confirmed that with a lack of clarity as to when the industry will rebound in earnest, sellers aren’t dealing from positions of strength.
Related News Articles
Most Popular
SPHERE OF FAILURE: U2 Concert Film is Vegas Orb’s First Flop
Corey Levitan
— September 8, 2024
Why UFC Vows Never to Return to Vegas Sphere
Corey Levitan
— September 11, 2024
Most Commented
Most Read
Last Comments ( 2 )
I have observed that over the course of making a relationship with real estate homeowners, you'll be able to get them to understand that, in every single real estate financial transaction, a commission rate is paid. In the long run, FSBO sellers do not "save" the commission rate. Rather, they struggle to earn the commission by doing a strong agent's occupation. In this, they expend their money as well as time to accomplish, as best they can, the jobs of an representative. Those duties include disclosing the home by means of marketing, offering the home to willing buyers, building a sense of buyer desperation in order to make prompt an offer, scheduling home inspections, taking on qualification inspections with the loan company, supervising maintenance tasks, and facilitating the closing of the deal.
Thanks for the helpful write-up. It is also my belief that mesothelioma has an extremely long latency time period, which means that indication of the disease won't emerge till 30 to 50 years after the primary exposure to asbestos. Pleural mesothelioma, that is certainly the most common variety and influences the area across the lungs, could cause shortness of breath, chest muscles pains, including a persistent coughing, which may lead to coughing up body.