Ongoing renovations at Palace Station and the Palms took a toll on revenue in the first quarter for Station Casinos parent Red Rock Resorts.
The take company-wide dipped 1.1 percent to $421 million in the three months ended March 31, but Las Vegas operations held steady overall, with revenue up slightly from $394.2 million last year to $395.2 million and adjusted EBITDA up 4.2 percent to $125.9 million.
“The outlook for the Las Vegas economy remains strong and should continue help sustain our positive growth going forward and all key underlying economic metrics remain favorable,” CFO Steve Cootey said.
Total EBITDA rose 2.9 percent to $140.1 million. Net income was $82.1 million, or 65 per share, well above the $45.4 million, or 30 cents per share, realized in the same period last year, thanks mainly to $27 million in after-tax gains.
The company said the Palace Station makeover is on track to finish by year’s end, and the Palms renovations are being completed in phases beginning this month.
Workers at the Palms recently voted to join Culinary Local 226 and Bartenders Local 165 of UNITE HERE, making it the fifth Station property to unionize since 2015. The election, supervised by the National Labor Relations Board, affects around 900 Palms employees.
It was not known when contract negotiations would begin. Negotiations at the other Las Vegas properties𑁋Boulder Station, Palace Station and Green Valley Ranch𑁋are ongoing. Graton Resort & Casino in Rohnert Park, Calif., which Station manages for the Federated Indians of Graton Rancheria, negotiated a union contract without having a vote.
