The Palms Casino and Hotel in Las Vegas is known for its extravagance. You have likely heard of the big parties held on the property, or the exceptionally lavish rooms in the hotel, and now it can all be yours. Of course, you will likely need access to several hundred million dollars in order to take over the large casino just off the Vegas strip.
The timing of the sale makes perfect sense, as the economy and numbers in Las Vegas tourism have been steadily increasing since their collapse in 2008-09. Casino companies like Caesars saw massive losses from the economic downturn during these years, namely from drops in property value, and it has taken a half decade to see a sizable rebound. Needless to say, today vegas is as economically strong as ever.
This is not one of the most well known casinos in Las Vegas, especially if you are on the strip for the majority of your visits. Its location (just off the strip towards Rio) is what most would consider to be its biggest drawback. No matter how superior its offerings have been, the location remains a hindrance that is difficult to overcome. The property has attempted to cater to locals in an attempt to retain a steady flow of business from customers that recognize its value. Other than this, it does not have many draws for tourists when compared to other options in the area.
The Palms’ recovery has been a strong one, especially when considering the deep depths that it fell to at its bottom point. After ownership changes, Aliante Gaming LLC (the current owner), has decided to see if a sale may be a good idea. Now, the offering of the casino for sale does not mean it will certainly be sold, and there is a good chance that it will not, in fact, change hands at all. The Palms being made available for a possible sale is great news for other casinos in the Las Vegas area, as a valuation increase at one means a boost in value at the others.
The biggest numbers taken into consideration in Las Vegas always seem to be occupancy levels, room rates, and overall traffic numbers. As the business derived from actual gambling continues to decrease year over year in Las Vegas, the prices paid for rooms and entertainment become more important. The average room is now $120 per night (around the same as the peak years of 2008 & 2009), with overall visitors rising a few percentage points as well. Either The Palms current ownership is happy to leave with a solid profit now, is in need of liquidity, or they see this being the absolute peak. No matter what you may read into the possibility of a Palms sale, there is no denying that Las Vegas tourism as a whole is certainly on the rise, and that is good news for just about everyone.