Macquarie analyst Chad Beynon said February revenue per room on the Las Vegas Strip rose 6% year over year, while visitation increased 2%. He cut his first-quarter Strip gaming revenue forecast to a 2.5% decline, but said stronger room revenue could put Vegas segments ahead of earnings consensus.
Operators and investors can weigh weaker gaming revenue against improving hotel performance in Las Vegas.
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Red Rock Resorts reported second-quarter net revenue of $510.3 million, down 3% year on year, and net income of $76.6 million, down 29.3%. The company said construction affected results at several Las Vegas properties; its $385 million Durango expansion remains on schedule to open in the second half of 2027.
Analysts issued views on Genius Sports, Virginia historical horse racing and Las Vegas Strip gaming, according to the report. B Riley Securities cited active customer proposals following Genius Sports’ Legend acquisition; Jefferies reported Virginia historical horse racing revenue rose 2.5% year on year in May, while Truist said Strip gross gaming revenue increased 7% year on year in April.
Red Rock Resorts reported record first-quarter revenue and said construction at Durango, Green Valley Ranch and Sunset Station would disrupt operations in the second quarter. The company said the Durango expansion will cost $385 million and open in summer 2027, while Sunset Station work costing $87 million is due to finish in 2027.
Analysts at Macquarie estimated that the Las Vegas Strip generated $696 million in February revenue, up 1% year over year, and lowered their first-quarter 2026 forecast to a 2.5% decline from a previous 0.5% decline. J.P. Morgan’s analysis put February visitation at 3.04 million, up 2%; Truist Securities maintained a Hold rating on Bally’s and cut its price target to $13.
Red Rock Resorts increased the planned budget for its Durango casino expansion to $430 million from $385 million, the company said alongside its third-quarter results. The project is expected to open in Q3 2027, and management maintained a targeted 20% return on investment.