Who’s on the Hook for the Palms?
Red Rock Resorts has set a big ROI target for its Palms Casino Resort. What started as a $312.5 million acquisition with $35 million of EBITDA expected in the first full year of RRR ownership, has now become a $1 billion project, with a capex budget that has increased to $690 million over the past year-and-a-half.
Investors should ask management to set clear markers: who will be held accountable if the post-renovation Palms doesn’t generate the kind of ROI management has projected?
