The Palms Casino Resort is embarking
on a new era of growth that will change the skyline surrounding its
landmark location. Owner George Maloof announced expansion plans to build
a 40-story hotel tower and a 520-foot condominium hotel and spa.The $600 million expansion is part of the master plan for the Palms, which
resides on 34 acres on West Flamingo Road. The expansion will introduce
some firsts for Las Vegas and compliment the local and celebrity clientele
known to frequent the Palms.

“Since we opened the Palms in 2001, we have developed one of the strongest
brands in the gaming industry. Our property is known worldwide,” Maloof
said. “Our marketing strategy at the Palms has resulted in extraordinary
financial success. We want to continue that success and make the Palms an
all encompassing one stop resort destination for our guests.”

A new hotel tower with 347 rooms and suites is currently under
construction and will feature many one-of-a-kind amenities. The expansion
will include 46 megasuites and sky penthouses.

“The Palms set the standard for themed hotel rooms by creating the
world-famous Real World suite,” Maloof said. “With our expansion, we will
design some of the most extraordinary and unique luxury suites ever built
in Las Vegas.”

There will be themed party suites, built with extra sound insulation, that
include swimming pools, fireplaces and even a basketball court. These
suites will be accessible from a private entrance and valet.

One of the main features of the expansion will be an entertainment mecca
that mixes nightlife and dining. The Palms has entered into a licensing
agreement with Playboy Enterprises Inc. that will enable the hotel to use
the Playboy brand name for a high-end lounge and a themed retail venue.
The Palms and the N9NE Group, which currently operates hot spots ghostbar
and Rain in the existing tower, will operate the new venues.

The first-ever recording studio in a Las Vegas hotel-casino will span
8,000 square feet, offer state-of-the-art equipment and allow artists to
record from remote units in their suites. The expansion will also include
an exclusive screening room and lounge that will accommodate VIP guests
who require a private spot for viewing films.

Additional highlights include an intimate 2,200-seat showroom,
approximately 60,000-square-feet of meeting space, two new restaurants and
specialty retail shops. A new pool with private bungalows and a unique
look will be an extraordinary centerpiece for the resort.

Adjacent to the hotel towers, a 50-story, 520-foot condominium hotel and
spa will be built. The project, named Palms Place, will feature 599
condominiums. Celebrities, major recording artists, prominent sports
figures, actors and Palms high rollers are among the first to reserve a
residence at Palms Place, which is slated to begin construction in 2006.

Palms Place will be connected to the Palms by an enclosed, elevated,
moving walkway, allowing residents 24-hour access to amenities at the
Palms.

“Palms Place will be the premier condominium hotel complete with a
world-class spa, VIP concierge service and all the action of the Palms
lifestyle,” Maloof said. “The building will be spectacular and will boast
wide ranging views of the Strip and Spring Mountains.”

The Jerde Partnership, based in Los Angeles, Calif., is the architect for
Palms Place and the new hotel tower. Jerde is known worldwide for its
architecture, urban planning and landscape design. Only one tower will be
built at Palms Place, creating a more exclusive environment, according to
Maloof. Palms Place will feature a private, gated entryway, a
50,000-square-foot pool and spa, valet parking and more.
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