The San Manuel Band of Mission Indians is buying the Palms Casino Resort in Las Vegas from Red Rock Resorts for $650 million in cash, the tribe and Red Rock announced today.
The deal, subject to regulatory approvals and other conditions, is expected to be completed this year.
The hotel-casino, which closed in March 2020 amid the pandemic shutdown, was among the few in Las Vegas not to reopen. Reopening would also be contingent on the tribe receiving a Nevada gaming license.
"The Palms is a well-designed property which has been beautifully redeveloped and maintained by Red Rock Resorts," San Manuel gaming and hospitality authority chairwoman Latisha Casas said. "Our board believes that the Palms is a casino resort that many of San Manuel Casino's loyal guests would enjoy."
The tribe, which has operated San Manuel Casino in Highland, Calif., for 35 years, has been a steady contributor to Las Vegas recently. It has donated to the University of Nevada-Las Vegas' William F. Harrah College of Hospitality and William S. Boyd School of Law, the Public Education Foundation and Shade Tree Shelter. It also has partnerships with the Las Vegas Raiders, Allegiant Stadium and the Vegas Golden Knights.
Las Vegas. Photo Credit: randy andy/Shutterstock.com
The city has a long history of reinventing itself, and that trait will come into play as it re-emerges from the Covid crisis.
"Today represents an important step for the tribe and its long-term economic diversification strategy," San Manuel chairman Ken Ramirez said. "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 opened in 2001 just west of the Las Vegas Strip, has 700 hotel rooms and suites, a 90,000-square-foot casino, restaurants, meeting and convention space, a 2,500-seat theater, pool and spa, other amenities and Palms Place condominiums.
Well-sourced Vital Vegas blogger Scott Roeben initially wrote about the pending deal last week.
"We understand San Manuel plans to reopen Palms as quickly as possible after the sale is finalized, and the resort will keep the Palms name (which makes sense, as it's still a strong, recognized brand)," Roeben wrote.
San Manuel would become the second tribe to operate a casino in the Strip corridor. Mohegan Gaming & Entertainment manages the casino in Virgin Hotels Las Vegas, which opened earlier this year.
Red Rock Resorts, which purchased the Palms in 2016 for $312.5 million, completed a $620 million renovation before the pandemic.