Glitzing up a market downturn

The opening of Palms Place last weekend was as celebrity-packed and media-saturated as you would expect from a George Maloof event associated with the Palms. In fact, a number of the celebrities on the red carpet had already had their own red carpets in connection with Palms Place.

There was the endless number of cast members/workers at Sunset Tan, which has a salon in the hotel. That salon had a red carpet opening earlier this year. Also appearing on that red carpet as well as on an earlier red carpet for his own signature restaurant at Palms Place was chef Kerry Simon. He too was back for one final red carpet strut for Palms Place.

This was vintage Maloof, milking press out of each stage of his project’s development. And the plan worked with plenty of photographers and reporters hoping to get a crack at hot tabloid fodder such as representatives from the families Jackson (LaToya and Jackie), Simpson (Ashlee and Jessica) and Kardashian (Khloe).

Admittedly, few of the questions had to do with Palms Place. “Do you think Maloof will mind being asked about Britney?” one reporter asked me as Maloof headed down the carpet for the first of three passes. Maloof had two recent meals with the singer, which made headlines and fueled speculation the troubled pop star was planning a comeback at the Palms.

In fact, Maloof had told me a week earlier the two meetings were just friendly (they have known each other for years) and no business was discussed. On the red carpet, Maloof, with perfect composure, told the reporter “She’s fine” to three variously expressed requests for insight into Spears’ current condition. The sports mogul and casino operator is used to handling questions about his VIP friends with diplomacy and discretion. This sort of thing does not fluster him. More on his mind is Vegas’ condition.

Maloof opened the original Palms in the shadow of 9/11. Vegas was suffering layoffs and talk of recession for the first time in recent memory. “I was a bit nervous,” he admits. Now while Palms Place does not have a casino (it is connected to the Palms), Maloof is opening his condominium-hotel tower in the midst of probably the worst real estate meltdown in Vegas history. Nevada has been among the national leaders in foreclosures, there is a credit crunch for real estate loans, and once again casinos are laying off employees (including Strip giants MGM-Mirage and Harrah’s).

“Sometimes you can’t help when you open. You just have to work hard and live through it. There are always challenges,” Maloof says of the unfortunate timing of his two openings. Yet as with the Palms, he sees Palms Place in a smaller way as ultimately good for helping spark the rebound that everyone is convinced Vegas is due.

“I think people used the opening [of the Palms] in a way that was good for Las Vegas, because people needed something to get their mind off the tragedy. The principle is the same. We are opening a brand new property that was a $400-million expense, and we have hired more than 300 people. So we created a lot of jobs. This is good for the Las Vegas economy during a challenging time.”

The final stage of Palms Place is proving “challenging” (one of Maloof’s favorite words) as well. Palms Place said it sold out its 599 units including 21 penthouses three years ago. But even that hasn’t proven to be total protection; as Maloof notes, “People put 20% down. Now we just have to collect the rest for closing in very challenging financial times.” Still, Palms Place has had it easier than most competitors, including Trump International, which still has available units in that recently opened hotel-condo.

But as a place to stay, the reviews of Palms Place are glowing from hotel guests and owners. Jessica Simpson sounded about as excited over buying a condo as she might over finishing a marathon: “Owning a condo in Vegas is surreal. I never thought I would own a condo in Vegas.” Asked how often she intends to be in residence at her Palms Place unit, the singer offered one of her trademark head scratchers: “I hope that I stay here more than I ever thought that I would.”

What more of an endorsement could you ask for?

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For more of what’s happening on and off the Strip, see latimes.com/movable buffet.