California Tribe Purchases the Palms for $650 Million
Native American Tribe’s Affiliate to Wholly Own and Operate Las Vegas Casino-Resort
A California Native American Tribe just purchased the Palms Hotel and Resort for millions.
The San Manuel Band of Mission Indians and the San Manuel Gaming and Hospitality Authority today announced a definitive agreement for a subsidiary of the tribe to acquire the Palms Casino Resort from Red Rock Resorts for $650 million, according to a press release.
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, CA, this announcement reflects a milestone for San Manuel.
“Today represents an important step for the Tribe and its long-term economic diversification strategy,” said San Manuel Chairman Ken Ramirez said in a statement from the Tribe. “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 has undergone several major changes in the past 20 years. The resort originally was developed and owned by the prominent Maloof Family, but was sold to Station Casinos—Red Rock Resorts’ Parent company—in 2016 following financial hardships.
For years, the Tribe has demonstrated an interest in and supported the Las Vegas community through contributions to non-profits 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.”
The Palms, which has been closed for over a year due to the ongoing COVID-19 pandemic, is located just west of I-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 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, according to the Tribe’s release.
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