LAS VEGAS (KTNV) — San Manuel has announced an agreement to purchase the Palms hotel-casino for $650 million.
The San Manuel Band of Mission Indians and the San Manuel Gaming and Hospitality Authority announced the definitive agreement to acquire the Palms from Red Rock Resorts in a press release Tuesday morning.
The transaction is expected to close later in 2021, subject to the receipt of regulatory approvals and other customary closing conditions.
After 35 years of operating San Manuel Casino in Highland, California, Tuesday's announcement reflects a milestone for San Manuel, according to its representatives.
"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.”
For years, the San Manuel Band of Mission Indians, or the Tribe, says it has demonstrated an interest in and supported the Las Vegas community through contributions to nonprofits and Las Vegas institutions including UNLV’s William F. Harrah College of Hospitality and William S. Boyd School of Law, the Public Education Foundation and Shade Tree Shelter, plus partnerships with the Las Vegas Raiders and Allegiant Stadium, and the Vegas Golden Knights.
“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.”
Jefferies LLC is acting as San Manuel’s financial advisor. Latham & Watkins LLP and Greenberg Traurig, LLP are acting as the Tribe’s legal counsel.
The Palms, which has been closed for over a year, is located just west of Interstate 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.
San Manuel reports it is a top-10 private employer in San Bernardino County in Southern California with more than 4,900 team members.
The Tribe currently has a major expansion project underway at San Manuel Casino featuring 432 guest rooms, expanded high-limit gaming, new dining amenities and a special events space. This expansion will add more than 2,000 new jobs by the end of 2021.