Plug Pulled on Tao Group Nightclub and Restaurant at Palms

Boom. We did not see this one coming.

Seemingly out of the blue, Tao Group and Red Rock Resorts announced they’re bailing on plans for a massive nightclub and restaurant at the off-Strip Palms.

The companies made the announcement in a joint statement. (Las Vegas translation: They have to play nice in public.)

Here’s the entire statement, as there’s not a lot of other information about this sudden change of course at Palms.

“Red Rock Resorts, Inc. and Tao Group announced today that they have jointly agreed to terminate the agreements previously entered into by the parties in connection with the dayclub/nightclub and a restaurant that are scheduled to open around the end of the first quarter in 2019 at the Palms Casino Resort. The terms of the agreements are confidential, but no payment will be required of either party under the agreements.”

Palms

This marquee came down as part of the Palms overhaul, probably in an attempt to make us openly weep.

Crazy, right?

Palms has been trumpeting its partnership with Tao Group for some time now, and a substantial investment has already been made in the nightclub space.

The 29,000-square-foot nightclub will presumably move forward at Palms, just without Tao Group as a partner.

Tao was also slated to bring its Vandal restaurant brand to Palms. The original Vandal has been a trendy smash in New York City, and was highly-anticipated in Las Vegas.

Tao Group

It’s pronounced “dow,” no matter how many people insist upon mispronouncing it.

So, that’s all the hard news about this turn of events. The rest is mostly conjecture, and our usual sources are being tight-lipped about the divorce between Palms and Tao, although it’s fairly obvious it was due to “irreconcilable differences.”

There’s a chance Tao got cold feet. Palms is in the midst of a $620 million makeover, and Tao was going to play a significant part.

But Palms already has a nightclub, Apex Social Club. Sources tell us Apex has struggled since opening in the former Ghost Bar space. Reports are mixed about the hotel’s new steakhouse, Scotch 80 Prime.

Did Tao Group lose faith in the new “From Dust to Gold” direction of Palms? See more.

Palms dust to gold

Wasn’t this the plot of a James Bond movie?

Tao Group, of course, sold a majority interest to Madison Square Garden in 2017 for about $180 million. The Madison Square Garden Company has gained a higher profile in Las Vegas with the development of the Sphere at Venetian.

Is there a chance Las Vegas Sands, owner of the Venetian, wasn’t thrilled with Tao Group (and by extension, it’s Sphere partner) playing in somebody else’s sandbox?

There have also been rumblings related to Tao’s Marquee nightclub at Cosmopolitan (rumors it would close have been denied by Cosmopolitan and Tao reps) and Tao Beach at Venetian (we’ve heard its planned expansion was stalled until news of the Palms deal fell through).

We’ll keep poking around to see what we can dig up about what we’re sure is some juicy drama!

Unknown bar Palms

The new Unknown bar at Palms recently joined our list of offbeat Vegas photo ops.

At the moment, it seems Red Rock Resorts and Palms are in need of a dayclub/nightclub partner.

On the restaurant side, there’s no time to cry over spilled hot pretzel steak tartare, whatever that might be. Bottom line: There are tons of exciting new restaurant offerings in the works at Palms.

New concepts on the way include restaurants from Michael Symon (BBQ), Marc Vetri (Italian) and Bobby Flay (seafood). We’re literally getting hungry typing that sentence.

There’s also a new buffet, AYCE (All You Can Eat), a new cafe (Lucky Penny) and a new noodle bar (Send Noodles).

That’s just for starters. Check out our list of 22 New or Renovated Things Coming to Palms.

9 thoughts on “Plug Pulled on Tao Group Nightclub and Restaurant at Palms

  1. Andy

    Nightclub competition is so stiff you really need a huge reason to venture off Strip when you have places like Omnia or Hakkasan. It’s virtually impossible to replicate what Ghostbar and Rain did at the Palms when at the time the best places you could go were the stinky studio 54 and the pathetic Rumjungle. Smart move from the Tao group,just save money folks..

    Reply
  2. Boulder Steve

    You cannot get all the scoops. Be interesting to see if they change course and dump the nightclub all together. That would be my advice but I’m not a millennial

    Reply
  3. Cranky Old Man

    I wish I could say I was fascinated by all the posturing of the nightclub/dayclub scene, but I’m not. Waste your money, millenials. It grows on trees!

    Reply
  4. Bill Hampshire

    The “new” Palms must be tanking. I was there two weeks ago on a Friday night early for dinner at 7p. We went to the Lucky Penny. There were two other couples dining. The casino was d-e-a-d. Now 7p on Friday isn’t Primetime but it’s certainly a shoulder time and should have at least been busy if not crowded or packed. Tao is very good at what they do but you can’t polish a turd.

    Reply
    1. Pat Boone

      Had a hard time parking there on a Friday night in early August, around 7 p.m., but that was due, seemingly, to an Alice Cooper concert or something. Buffet was busy enough to have a modest line. Overall decent human traffic after the metalheads were let into the showroom. Nothing about that place makes me think I want to frequent it.

      Reply
  5. FYMYAWF

    Have to think Tao got colder than cold feet seeing the lack of crowds at the “new and swanky” Palms. Scott certainly has better sources than I do on this stuff but I think I follow enough outlets and talk to enough Vegas insiders to get the feeling that there’s just very little buzz around what the Palms is doing.

    Trying to return it to its former glory was a bold move by Stations but as Andy says above the situation in town is so different from when it was the hottest thing around. Location is king now, and that 2 mile taxi/Uber ride to Palms is a tough sell when you have all the same stuff right there on strip now.

    We’ll see how it all shakes out when everything there is open, maybe they can recapture the magic but I think it’s going to be a tough slog for them.

    Reply
    1. FYMYAWF

      They changed the name to Red Rock Resorts a while back, I guess they think it has more “cache” than Stations, but everyone still calls them Stations, because they’re Stations.

      Reply
  6. DISCO FOREVER

    Non-millennial here…but I was a “Club Kid ” with the best of ’em in my rip-run days.
    The Palms pretty much had to undertake this face lift…or risk irrelevancy.And (imo)
    it’s coming along rather well.The finished product is gonna have some great visuals.
    That being said…the big-time party venue scene reached “peak thousand dollar bottle service” around when Omnia opened. Are there enough big spenders out there to support every venue that wants to get that kinda dough?

    Reply

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