Red Rock Resorts, the parent company of Station Casinos, is adding a new resort to its Vegas portfolio: the Palms.
The company said last week that it will purchase the Palms Casino Resort, located just off the Strip on Flamingo Road, for $312.5 million.
The Palms opened in 2001 under the ownership of the Maloof family, with George Maloof running the property. It hosted a season of MTV’s "The Real World" and became known as a celebrity hangout in Las Vegas. In 2011, private equity firms TPG Capital and Leonard Green & Partners took over majority ownership of the casino after it suffered financial difficulties and missed a loan payment. Maloof retained a 2% stake in the casino.
Station Casinos, meanwhile, has long focused on the locals market in Las Vegas and owns and operates 16 casinos primarily targeted toward Nevada residents.
“With the acquisition of the Palms we gain a leading gaming asset in Las Vegas with key strategic benefits in the Las Vegas locals market and close proximity to the Las Vegas Strip,” said Marc Falcone, executive vice president, CFO and treasurer of Red Rock Resorts, in a statement.
“With its appeal to both Las Vegas residents and tourists alike, the Palms is a hybrid gaming property that is uniquely positioned to benefit from the strong economic trends in southern Nevada and record visitation levels in Las Vegas.”
The acquisition is expected to be finalized in the third quarter of this year.