Red Rock Resorts has announced that Station Casinos will buy Palms Casino Resort in Las Vegas, Nevada for $312.5m.
Palms features a 95,000-square-foot casino with approximately 1,250 slots and 48 table games, a race and sportsbook, approximately 710 hotel rooms across two towers with 85 suites and 19 penthouses
Marc Falcone, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts, said: “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.”
“We are very proud of our team members for their hard work, dedication and commitment to guest service and the community,” said Palms Chief Executive Officer Todd Greenberg. “We are extremely excited for all the great opportunities our team members will have with Red Rock Resorts and Station Casinos.”
Factoring in anticipated synergies, the Company estimates that the Palms will generate $35m in EBITDA during the company’s first full year of ownership, resulting in an implied multiple of 8.8 times EBITDA for the transaction. The company expects the acquisition to be accretive to earnings per share and free cash flow positive in first full year of operations.