If you follow Vegas news then you’ve probably seen speculation that Downtown Grand is for sale (on Vital Vegas) or possibly sold (Travel Zork).
I’m told that Downtown Grand is on the market but there isn’t a buyer in sight.
My semi-educated view on the real estate market in Vegas is that there won’t be a buyer for Downtown Grand until after Derek Stevens announces his plans for the future of Las Vegas Club (see Las Vegas Club news at Travel Vegas and info on its sports theme at Covers).
The former Las Vegas Club has 400 hotel rooms that can be renovated and rented once the property is re-opened. It’s unlikely that an investor would make an offer on Downtown Grand until they know what Derek Stevens plans to do with those hotel rooms.
Added hotel room supply could (should) drive down hotel room prices in Downtown Vegas. If nothing else added hotel room supply should keep hotel room prices low in Downtown Vegas.
Downtown Grand has 634 hotel rooms between its two towers. Prices for those rooms will be effected if Stevens’ plan is to open those extra 400 rooms at Las Vegas Club. The revenue potential of those 634 rooms should help dictate a price for Downtown Grand.
Derek Stevens says he should have plans set for the former Las Vegas Club by VIMPF which is October 16-18. Unless overall room capacity in the area doesn’t matter to the buyer of Downtown Grand I don’t see anyone making a purchase before the year is end – especially if Downtown Grand is trying to position its sales price as if they’re a luxury property.
Photo: Vegas Photo Blog
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There might be another reason for the sale of the Downtown Grand (this is just a guess). The same company that owns the Downtown Grand (LVERIC) also is building the Lucky Dragon just off the strip. The LVERIC uses the EB-5 program to raise capital for this project. Could be move to raise capital to fund their current project.
Possibly. They will be taking a bath on the sale but sometimes cutting losses is the best move for a business.
Who would even consider buying this unless it is totally a real estate play? I have tried to enjoy the place a couple of times but the food wasn’t very good, the music was WAY to loud and there was no place to park except for Valet. I don’t like letting valet driver drive my car. Without parking and decent food, the place is worthless to me. Plus the rumor on the street is that the big bosses are horrible bosses and have no idea what they are doing and treat the staff like crap. All of that said, why would anyone visit this place? Maybe a different operator that is employee friendly and understands what customers need may be able to save the place? Doubtful but maybe.
Believe it or not there are companies that think they can make money operating a casino. Haha. Seriously though your problems are real. There’s a lot of work to be done to give the customer a better experience. I imagine an experienced casino operator would try to fix what they can. Parking is a real problem, especially for the locals.