{"id":172600,"date":"2021-05-04T09:09:57","date_gmt":"2021-05-04T16:09:57","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=172600"},"modified":"2021-05-04T11:34:29","modified_gmt":"2021-05-04T18:34:29","slug":"red-rock-resorts-selling-palms-to-san-manuel-for-650-million","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/","title":{"rendered":"Red Rock Resorts Offloads Palms Casino to San Manuel for $650 Million in Cash"},"content":{"rendered":"

Red Rock Resorts, Inc. (NASDAQ:RRR) said today its Station Casinos unit is selling the Palms Casino Resort in Las Vegas. The buyer for $650 million in cash is the San Manuel Band of Mission Indians, ending roughly a year of speculation regarding the fate of the currently shuttered venue.<\/p>\n

\"Palms\"
The Palms Las Vegas. Red Rock is selling it to San Manuel for $650 million. (Image: Las Vegas Review-Journal<\/em>)<\/figcaption><\/figure>\n

Rumors about the transaction involving San Manuel — operator of one of California’s largest Native American casinos — were originally reported by Vital Vegas<\/i><\/a> last week.<\/p>\n

However, Palms’ fate has hung in the balance for nearly a year. Station Casinos filed plans with the Nevada Gaming Control Board (NGCB) to keep the integrated resort and three other<\/a> Las Vegas-area properties shuttered through June 30, 2021.<\/strong><\/p>\n

Fiesta Henderson, Fiesta Rancho, and Texas Station weren’t mentioned in a statement announcing the Palms transaction. The trio of Station venues is still closed.<\/p>\n

Underscoring the rough environment sellers of gaming assets face in the wake of the coronavirus, Red Rock is taking a loss on the sale. It paid $312.5 million to the Maloof family to acquire the venue almost exactly five years ago but sunk another $690 million into sprucing it up.<\/p>\n

A statement issued by Las Vegas-based Red Rock Resorts doesn’t say when the transaction will close.<\/p>\n

‘Like Buying a Yacht’<\/h2>\n

In terms of pricing, it’s a good time to be a buyer<\/a> of gaming properties, as highlighted by at least one recent Strip transaction. However, some real estate industry insiders with intimate knowledge of the gaming space say buyers in this environment should know what they’re getting into.<\/p>\n

Buying a Vegas casino in this market is like buying a yacht,\u201d<\/strong> said James Harris, senior managing director at Helmsley Spear, in an interview. \u201cYou must be willing to dump 10 percent of its cost in the ocean every year and wait for the turn.\u201d<\/strong><\/p><\/blockquote>\n

The \u201cturn\u201d he’s referring to is the return of convention business to the largest US gaming center. This is something some analysts don’t see<\/a> approaching pre-pandemic levels until 2023.<\/p>\n

Red Rock Has Options for Palms Cash<\/h2>\n

Over the course of 2020, speculation about the fate of Palms repeatedly popped, with Red Rock executives consistently refuting<\/a> that the venue was up for sale. Obviously, there was a change of heart, as highlighted by today’s announcement.<\/p>\n

While the $650 million sale price occurs below Palms’ book value, indicating San Manuel is getting a good deal, there is some potential upside for Red Rock investors in this deal.<\/p>\n

As Macquarie analyst Chad Beynon points out in a note to clients today, the operator has numerous options for proceeds from the Palms transaction. It could revisit the Durango project, something it touted prior to the Palms purchase in 2016, and the company could reduce debt, according to the analyst.<\/strong><\/p>\n

Beynon adds Red Rock could be one of the first gaming companies to reinstate its dividend. Operators cut and suspended payouts at the height of the pandemic to conserve cash.<\/p>\n

He reiterates an \u201coutperform\u201d rating and a $36 price target on Red Rock stock.<\/p>\n","protected":false},"excerpt":{"rendered":"

Red Rock Resorts, Inc. (NASDAQ:RRR) said today its Station Casinos unit is selling the Palms Casino Resort in Las Vegas. The buyer for $650 million in cash is the San Manuel Band of Mission Indians, ending roughly a year of speculation regarding the fate of the currently shuttered venue. Rumors about the transaction involving San […]<\/p>\n","protected":false},"author":46,"featured_media":172601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33810,18456],"tags":[],"acf":[],"yoast_head":"\nRed Rock Resorts Selling Palms to San Manuel for $650 Million<\/title>\n<meta name=\"description\" content=\"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Red Rock Resorts Selling Palms to San Manuel for $650 Million\" \/>\n<meta property=\"og:description\" content=\"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-04T16:09:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-04T18:34:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/\",\"url\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/\",\"name\":\"Red Rock Resorts Selling Palms to San Manuel for $650 Million\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg\",\"datePublished\":\"2021-05-04T16:09:57+00:00\",\"dateModified\":\"2021-05-04T18:34:29+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg\",\"width\":1200,\"height\":800,\"caption\":\"The Palms Las Vegas. Red Rock is selling it to San Manuel for $650 million. (Image: Las Vegas Review-Journal)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Gaming Business\",\"item\":\"https:\/\/www.casino.org\/news\/gaming-business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Red Rock Resorts Offloads Palms Casino to San Manuel for $650 Million in Cash\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Red Rock Resorts Selling Palms to San Manuel for $650 Million","description":"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Red Rock Resorts Selling Palms to San Manuel for $650 Million","og_description":"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.","og_url":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-05-04T16:09:57+00:00","article_modified_time":"2021-05-04T18:34:29+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/","url":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/","name":"Red Rock Resorts Selling Palms to San Manuel for $650 Million","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg","datePublished":"2021-05-04T16:09:57+00:00","dateModified":"2021-05-04T18:34:29+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Red Rock Resorts is finally parting with Palms Las Vegas, selling it to San Manuel for $650 million in cash.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/palms.jpg","width":1200,"height":800,"caption":"The Palms Las Vegas. Red Rock is selling it to San Manuel for $650 million. (Image: Las Vegas Review-Journal)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-selling-palms-to-san-manuel-for-650-million\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Gaming Business","item":"https:\/\/www.casino.org\/news\/gaming-business\/"},{"@type":"ListItem","position":3,"name":"Red Rock Resorts Offloads Palms Casino to San Manuel for $650 Million in Cash"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/172600"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=172600"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/172600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/172601"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=172600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=172600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=172600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}