LAS VEGAS (KLAS) — The Palms in Las Vegas was sold to a California tribe in a $650 million cash deal.
Red Rock Resorts announced the agreement with San Manuel Gaming and Hospitality (San Manuel Band of Mission Indians) Tuesday. The transaction is subject to regulatory approvals but is expected to be finalized later this year.
“Today represents an important step for the Tribe and its long-term economic diversification strategy,” said San Manuel Chairman Ken Ramirez. “On behalf of the Tribe, we are thankful for the opportunity to join a community that we have come to know and appreciate.”
The Palms, which has been closed for over a year, is located just west of I-15 near the Las Vegas Strip, and includes a casino, approximately 700 hotel rooms and suites, multiple casual and upscale dining options, meeting and convention space, a 2,500-seat theater, pool and spa, other amenities and Palms Place condominiums.
In 2019, The Palms had a $600 million makeover that included a night life theme. Red Rock Casinos was hoping it would cater to not only tourists, but locals as well.
[The] “Palms didn’t fit their niche like they wanted [it] to,” said Jason Soto, Vice President of Product Marketing.
Fast forward to 2021 the resort will now be handed over to Indian Gaming Tribe Sam Manuel for $650 million.
“The Palms is a well-designed property which has been beautifully redeveloped and maintained by Red Rock Resorts. Our Board believes that the Palms is a casino resort that many of San Manuel Casino’s loyal guests would enjoy,” said SMGHA Chairwoman Latisha Casas. “We are excited to move forward with this transaction.”
Marketing expert Jason Soto expects Sam Manuel Gaming to do well in Las Vegas because of their California roots.
“They got a loyal base of consumers that really enjoy their southern California properties but now have a home in Vegas,” said Jason Soto, Vice President of Product Marketing. “I think they will really like it.”
“We will probably focus more on our gaming costumers more than the night life scene,” said Laurens Vosloo, the CEO of San Manuel Band of Mission Indians
Purchasing a resort that has been sitting dark for a year may seem like a risk to many, but Vosloo says they had been eyeing the property for a while.
“We came out of COVID very strong. We are ready to go we looked at a number of different assets and the palms is one that fit us perfectly,” Vosloo said.
The deal has to go through regulatory approvals, but they are aiming for by the end of the year.
The tribe currently owns and operates the San Manuel Casino in Highland, California near San Bernardino.