Red Rock Resorts’ (formerly Station Casinos*) press release on the acquisition of the Palms conspicuously fails to mention George Maloof, saying little more than, "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." However, Station Vice President for Corporate Communications Lori Nelson confirms that Red Rock/Station owns 100 percent of the Palms. No more Maloofs.
(*For consumer purposes, Station Casinos continues to go by its old name. In corporate communications, it travels under the nom de voyage Red Rock Resorts. Its NASDAQ ticker symbol is, logically enough, RRR.)
The relevant SEC filing showed that Station was taking out California-based FP VoteCo. and Texas-based FP ParentCo., for the sum of $312.5 million. Since Station expects to generate $35 million in cash flow in its first full year of operating the Palms, that means it will derive an 11 percent return on its investment, pretty good for casinos nowadays. Considering that it cost Maloof $600 million to build the Fantasy Tower alone, Station got a steal of a deal, not only obtaining two hotel towers with 653 rooms and suites, but also the pricey Palms Place condo tower.
CBRE broker Michael Parks told the Las Vegas Sun, "It seems like a great acquisition for Station Casinos. It just gives them an excellent property in an outstanding location near the Las Vegas Strip. They’ve had a strong locals customer base in the past, which they can capitalize on and service the locals market, while also extending their customer base to include some tourists."
Station acquires a lot of history along with the Palms brand which, ironically was funded via George Maloof’s sale of his original Fiesta Casino (now Fiesta Rancho) property to ... Station Casinos. Opened in November 2001, the Palms snapped Las Vegas out of a post-9/11 funk and was an instant hit both with midweek locals players and weekenders (and celebs) from California. It hosted two seasons of MTV’s The Real World and there’s a "Real World" suite that the affluent can rent, not to mention the Barbie and G (as in "Gangsta") suites. But the truly unique aerie is the two-story Hardwood suite that is the only one in the world to have a basketball court (complete with scoreboard and locker room).
Among the many other amenities that the Palms brings to the Station stable is Las Vegas’ only true IMAX screen. (Station has two IMAX-ish screens that are less than full scale.) It also gives Station a proper concert hall in the form of The Pearl, which hosted too many musical and comedic notables to mention. The Palms also contains a recording studio, although if a musical artist is feeling too lazy to leave their room, they can lay down their vocals from the comfort of their suite. Artists who have cut tracks at the Palms include Beyoncé, Madonna, Michael Jackson, Lady Gaga, Maroon 5, local bands The Killers and Imagine Dragons, and – believe it or not – Wayne Newton.
As to George Maloof’s future plans, post-Palms, there has been no further news since the last time we covered his and his family’s current activities last October.
