Red Rock raises Palms price again

Company still plans to be done in third quarter

Red Rock Resorts has raised the price tag of its redevelopment of the Palms for a second time this year.

However, the company reiterated the off-strip project will be completed by the third quarter of 2019.

Red Rock is seeking to revive the 17-year-old property’s glory days by redesigning the gaming floor, adding new restaurants and clubs and upgrading rooms and suites.

The locals resort operator in February announced it would accelerate the Palms’ reconstruction, resulting in an increase from $485 million to $620 million. Red Rock said Wednesday the cost had risen yet another 10 percent.

“The overall budget for the redevelopment project has been increased to approximately

$690 million, primarily due to increased construction costs driven by high demand in the Las Vegas market as well as higher material costs,” the company said in its third-quarter results.

The company said Palace Station reconstruction will finish on budget and by the end of the year as planned. Higher marketing costs to promote the new amenities at Palace Station as well as ongoing construction costs pinched the company’s quarterly profit.

Red Rock shares fell $1.08, or

4.5 percent, to $23.00 in after hours trading.