- By Tribal Business News Staff
LAS VEGAS, Nev. — The San Manuel Band of Mission Indians has continued its investment in Las Vegas with a deal to acquire the Palms Casino Resort.
The Southern California tribe has signed a definitive agreement for a subsidiary of its San Manuel Gaming and Hospitality Authority to acquire the property from Station Casinos LLC, a division of Las Vegas-based Red Rock Resorts Inc. (Nasdaq: RRR), for $650 million in cash, subject to customary adjustments, according to an announcement on Tuesday.
The parties expect the deal to close later this year, pending regulatory approvals and other closing conditions.
The 19-year-old Palms includes a casino, 700-room hotel, a range of dining facilities, meeting and convention space, a 2,500-seat theater, pool and pool. The property also includes Palms Place condo units.
“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 in a statement. “Our Board believes that the Palms is a casino resort that many of San Manuel Casino’s loyal guests would enjoy.”
Red Rock Resorts acquired the property five years ago and spent $690 million renovating it in a project that wrapped up in 2019. The facility, located just off the Las Vegas Strip, has been closed for a year because of the hit the tourism industry has suffered during the COVID-19 pandemic, according to reports.
Executives at Red Rock Resorts told the Las Vegas Review-Journal that the sale allowed the company to create value for shareholders and “emerge from a pandemic on a more accelerated timeline.”
For the San Manuel Band, the purchase furthers the tribe’s investment into the Las Vegas area. Previously, the tribe became a founding partner of Allegiant Stadium and a sponsor of Las Vegas Raiders NFL team. In 2020, the tribe donated $9 million to the University of Nevada-Las Vegas to support the William F. Harrah College of Hospitality and the Boyd School of Law.
For 35 years, the tribe has operated the San Manuel Casino in San Bernardino County in Southern California, where it employs more than 4,900 people.
In a statement, the tribe said the definitive agreement to acquire the Palms Casino Resort “reflects a milestone for San Manuel.”
“Today represents an important step for the Tribe and its long-term economic diversification strategy,” San Manuel Chairman Ken Ramirez said in a statement. “On behalf of the Tribe, we are thankful for the opportunity to join a community that we have come to know and appreciate.”
The San Manuel Band is being advised on the deal by investment banking firm New York City-based Jefferies LLC. Los Angeles-based Latham & Watkins LLP and Miami, Fla.-based Greenberg Traurig LLP are serving as legal counsel.
Red Rock Resorts is being represented by New York City-based law firm Milbank LLP. Deutsche Bank Securities Inc., also based in New York City, is the firm’s financial adviser.