The Palms Casino Resort is the latest Maloof Family development. Photo by jeff scheid Palms President George Maloof poses with Paris Hilton during the grand opening of the Palms on Nov. A Las Vegas vacation can be a crazy, curious proposition in that it’s one of the few cities where part (or most) of the adventure rests on the risk of losing your money. That’s precisely one big reason to hedge your bets with the hotel you pick. Palms Casino Resort is located in Las Vegas, Nevada, and covers nearly 30 acres of land. The resort offers so much that guests won’t ever have to leave in order to have a memorable vacation. The Palms Casino Resort is made up of three towers that all have views of the Las Vegas Strip. The three towers are Palms Place, Ivory Tower, and Fantasy.

Palms Casino Resort Losing Money Due

(Bloomberg) -- The San Manuel Band of Mission Indians agreed to buy the Palms Casino Resort in Las Vegas from Red Rock Resorts Inc. for $650 million, the biggest purchase by a Native-Indian tribe in the U.S. gambling capital.

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Hard Rock International, owned by Florida’s Seminole tribe, acquired the rights to the Hard Rock name in Las Vegas last year. It has a restaurant in the city but has yet to announce casino plans.

The old Hard Rock, just off the city’s famous Strip, reopened in March under the Virgin Hotels brand. Its casino is operated by the Mohegan tribe of Connecticut under their Mohegan Sun brand, marking the first entry of a Native-American gaming operator in the city.

The Palms casino, which is also located off of the Strip, was opened in 2001 by the city’s Maloof family. It was one of the hottest nightlife spots in Las Vegas for a time, hosting music videos and reality TV shows. Red Rock, controlled by the Fertitta family, purchased it in 2016 for $313 million and began a $690 million renovation that included a focus on contemporary art.

The resort never quite regained its prior buzz, however, and has been closed since the pandemic began last year. On a conference call with investors Tuesday, the Fertittas said the sale to San Manuel gives Red Rock an opportunity to refocus on its core business of casinos that target Las Vegas residents.

(Updates with CEO’s comments starting in fifth paragraph.)

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We hear reliably and exclusively the off-Strip Palms Casino Resort has been sold.

Yes, we know to whom, and no, we can’t say yet. Half a scoop is still a scoop, so make the best of it.

All we can share is the buyer isn’t currently in the Las Vegas market. Also, it’s not a REIT or private equity fund, a welcome relief.

What a strange and wonderful journey for Palms. A new fork in the road is just ahead. No, that’s not a clue about who the buyer is, it’s just a lame analogy. Or possibly metaphor.

Palms never reopened after Las Vegas casinos were shut down on March 18, 2020 due to the COVID-19 crisis.

Palms was in trouble even prior to the pandemic.

The resort’s owner, Red Rock Resorts (Station Casinos), sunk an ungodly amount of money into a renovation ($690 million), then its Kaos nightclub and dayclub imploded right before our eyes, resulting in millions in losses.

Palms was purchased for $312.5 million in 2016.

Mid-2020, Red Rock Resorts CEO Frank Fertitta went public in an attempt to “squash” our rumors about Palms being for sale. We don’t squash easily, so we responded as we occasionally do.

Finally, an official announcement of the sale of Palms resort is close at hand.

No financial details of the sale are available yet, but we’d expect the sale price to be between $800-900 million. Red Rock Resorts was motivated to relinquish Palms, but it’s not a fire sale.

The new owner will reap the benefits of all the Palms improvements, without the burden of misguided decisions about nightlife and restaurants. We trust you weren’t emotionally attached to places like Bobby Flay’s Shark restaurant, as those partnerships aren’t likely to survive the transition.

Still, under new ownership and management, Palms’ best days could still be ahead.

Our usual disclaimer applies: This is an unconfirmed rumor. Things change and not all rumors pan out. Often, they do.

More news soon!

Palms Casino Resort Losing Money Due

Update (5/4/21): The sale of Palms to San Manuel has been confirmed. The sale price is $650 million. The transaction is expected to close by the end of 2021. Translation: Boom.

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Palms Casino Resort Losing Money Due