Playboy reaches licensing agreement with Palms

Adam Goldman

Wednesday, Oct. 6, 2004 | 11:08 a.m.

In a marriage made in sin, Hugh Hefner is coming to Las Vegas, where he'll have a vertical version of his Playboy mansion -- a nearly 12,000-square-foot love shack on top of the Palms hotel and casino 40-story tower that's under construction.

The two-story suite will be named the Hugh Hefner Sky Villa and have its own glass elevator that overlooks the Strip, along with an indoor and outdoor pool.

"He's going to make it his home away from home," Palms owner George Maloof said. "He's got plenty of room to play. It's a perfect fit."

Maloof said he completed a long-term licensing agreement with Playboy Enterprises Inc. on Monday.

The deal will allow the Palms to use the iconic brand in Nevada and in the tower's new nightclub, boutique casino and lounge, along with a retail Playboy store, said Bill Farley, Playboy's vice president of marketing events.

The 300-room tower opens in early 2006. Chicago-based Nine Group and the Palms will own and run the new spots. The Nine Group operates four other venues at the Palms, including the popular Rain nightclub and swanky rooftop Ghostbar.

Playboy said it expects to report a seven-figure revenue increase, starting in 2006, as a result of signing the licensing deal. Financial terms of the agreement were not disclosed.

Playboy has produced three weekend events with the Palms that have lured a crush of people hoping to catch glimpses of Playboy Playmates and the stars that follow.

Farley said Playboy picked the off-Strip Palms because it believes the property has become the hottest and hippest casino in the city since its November 2001 opening.

The casino is geared to the right demographic, young men from ages 21 to 34, the backbone of Playboy's business, Farley said.

"We are very selective in what we get involved in," Farley said. "There have been quite a few gaming-related overtures over the last decade that ranged from Indian casinos to other ventures but this is the one that ultimately became the deal that worked."

Maloof has been successful marketing the $265 million, 430-room casino as one of the coolest properties in Las Vegas thanks to a steady stream of hip celebrities, beautiful women and curious men.

The Playboy brand should bolster the sexy image Maloof has promoted relentlessly.

Maloof said the Playboy deal and the new tower are still a work in progress.

"We haven't got all the details yet," Maloof said. "We're still putting finishing touches on the whole project."