Local News


What Palms sale means for locals, tourists

Posted at 2:24 PM, May 10, 2016
and last updated 2016-05-11 02:39:07-04
Red Rock Resorts, Inc. has announced that Station Casinos has entered into a definitive agreement to acquire the Palms Casino Resort in Las Vegas for total cash consideration of $312.5 million.
“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, chief financial officer and treasurer of Red Rock Resorts.
“We are very proud of our team members for their hard work, dedication and commitment to guest service and the community,” said Palms Chief Executive Officer Todd Greenberg. “We are extremely excited for all the great opportunities our team members will have with Red Rock Resorts and Station Casinos.”
The company will discuss the transaction during its scheduled first quarter 2016 earnings conference call on May 12 at 4:30 p.m. ET.
13 Action News learned The Palms will probably be business as usual for the next six months. But after that, it could be a whole new era for the hotel and casino.
New ownership could mean a lot of new changes.
"They would look to target not only the local consumers but also tourists," said Applied Analysis Principal Brian Gordon.
Gordon coughed the acquisition up to the fact the current owners are looking to get out and it's time for a changing of the guard. He says it is a good thing.
"It's demonstrating that people believe in Las Vegas and they're continuing to make investments in Las Vegas," he said.
Locals are hoping the new owners, Station Casinos, will give the high-end resort a more local feel.
"That's pretty cool," said one local who was visiting The Palms movie theater Tuesday night. "I mean, my grandmother worked for Station Casinos for a long time so I think they're a good company. I think it's going to attract more locals and we're probably going to profit off of it."
Gordon says attracting more locals will most definitely happen. But their proximity to the Strip will help them target tourists too.
"They're only about less than a mile off the Las Vegas Strip so they'll be looking to capture some of that activity we see on Las Vegas Boulevard as well," he said.