When Las vegas started coming back to life last summer, it was to be expected that casino operators would want all their venues up and running to make up for lost time. But Red Rock Resorts , parent company Station Casinos , closed four properties. It was a clear sign that trouble was ahead, and now that the casino has been empty and closed for a year, the Palms Casino Resort is being sold in what could be considered a sale. Red Rock lets the resort go to San Manuel Band of Mission Indians for less than invested in real estate.
Red Rock Could Be Cleaning House
The Palms are joined by Fiesta Henderson, Fiesta Rancho, Palms and Texas Station as four Stations Casino properties will remain closed at the end of June last year as all other Las Vegas casinos are struggling to reopen. The closings sparked a lot of speculation about the future of the casino operator and the fate of four properties, but Vital Vegas assured this week that Red Rock had completed its Palms sales. The transaction is expected to close within 90 days, subject to receipt of all approvals.
Red Rock bought the property five years ago for $ 312.5 million. Since then, thanks to updates and renovations, he has injected another 690 million dollars. While sellers will always want their investment to generate a solid return, this one may not. Having invested at least $ 1 billion between purchases and updates, Red Rock's contract with the San Manuel team is for $ 650 million. Perhaps the company can make up some of the difference if it decides to offload the remaining three shuttered properties.
Tribal operators are moving to Vegas
The San Manuel Band of Mission Indians has had an eye on Vegas for a while and has strong ties to the city as well. Chief executive of the tribe Laurens Vosloo is the former executive director of Las Vegas Sands, and the tribe is the co-founder of the Las Vegas Raiders. Vital Vegas notes that it has dedicated a lot of money to various programs in and around Las Vegas, including a donation of $ 9 million to UNLV hospitality and law schools, and $ 250,000 to several regional nonprofits.
The tribe isn't the only one that's hot in Vegas. The Mohegan Indian Tribe, through its arm of Mohegan Gaming & Entertainment , is responsible for the gaming activities of Virgin Hotels Las Vegas after receiving regulatory approval late last year. The Seminole tribe that owns Hard Rock International (HRI) is reportedly discussing the possibility of purchasing Bally's on the Vegas Strip. Even if it does not adhere to this agreement, HRI is confident that it will be able to return the Hard Rock name to Vegas in the near future.