Red Rock reports net loss amid Palms nightclub struggles
Red Rock Resorts reported a net income loss of $26.6m for the three months ended 30 September, as a result of one-time charges related to the termination of a popular Palms Casino Resort dayclub/nightclub.
The net loss marked a $51.7m decline from a year ago, when Red Rock took in a net income of $25.1m.
In response to the negative returns, Red Rock has shuttered Kaos dayclub/nightclub, which served as a main attraction to Palms’ $690m facelift.
Kaos, which opened seven months ago, hosted top artists including Cardi B, Travis Scott and Marshmello.
Kaos occupied 73,000-square-feet as an indoor-outdoor venue.
Red Rock spent $28.2m to sever long-term agreements with multiple artists.
Palms VP and GM Jon Gray resigned in early October after overseeing the final phase of the casino’s redevelopment project.
Red Rock VP Michael Britt said Palms will use the facility as a private meeting and special events space.
The Palms is coming off the most expensive Las Vegas hotel transformation in history that includes the $100,000-per-night Empathy Suite and a $14m, 60-foot bronze sculpture, both designed by artist Damien Hirst.
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