Red Rock Resorts announced Tuesday that Station Casinos has entered an agreement to acquire the Palms in Las Vegas. Station casino.
The definitive agreement with the Palms Casino Resort will go for a total considered sale of $312.5 million.
The company estimates that the Palms will generate $35 million during their first year of ownership.
The transaction is expected to close during the third quarter of 2016, subject to satisfactory closing conditions.
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Marc Falcone, Executive Vice President, Chief Financial Officer, and Treasurer of Red Rock Resorts released the following statement:
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. With its appeal to both Las Vegas residents and tourists alike, the Palms is a hybrid gaming property that is uniquely positioned to benefit from the strong economic trends in Southern Nevada and record visitation levels in Las Vegas. With our experience owning and operating other hybrid offerings in Las Vegas, it is a compelling strategic addition to our portfolio of properties and we look forward to welcoming the Palms' team members to our Company.
Station Casinos is considered a leading provider of gaming and entertainment in the Las Vegas area with multiple properties around the valley.
The CEO of Palms, Todd Greenberg, also released a statement in regards to the sale:
We are very proud of our team members for their hard work, dedication and commitment to guest service and the community. We are extremely excited for all the great opportunities our team members will have with Red Rock Resorts and Station Casinos.
No word yet on what originally sparked the sale of the popular casino and hotel.
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