Hooters Casino Hotel


Hooters Casino Hotel

From Wikipedia, the free encyclopedia (wikipedia.org)

Hooters Casino Hotel is a hotel and casino located off the Las Vegas Strip in Paradise, Nevada, United States. It is owned by Trinity Hotel Investors and operated by Paragon Gaming. It is located off the Strip next to the Tropicana and across the street from the MGM Grand Las Vegas. The hotel has 696 rooms with a 35,000-square-foot (3,300 m2) casino.

History

Howard Johnson Hotel (1973-1975)

The hotel was built by the Oesterle Nevada Corp. for $8 million, and opened in 1973 as a Howard Johnson Hotel.

Paradise Hotel (1975-1976)

It was purchased in 1975 for $7.6 million by Eureka Savings and Loan, after Oesterle Nevada declared bankruptcy. Later that year, it was sold for $10 million to Bernard Nemerov, a former part owner of the Riviera casino, who renamed the hotel as the Paradise Hotel. Nemerov added a small casino to the property, which opened on New Year’s Day 1976.

In June 1976, the Paradise was targeted in a credit scam by 54 mobsters associated with the Philadelphia crime family. The scheme left the casino with insufficient cash to operate, and it was forced to close and went bankrupt.

Ownership changes and renamings (1976-1989)

The property was purchased in 1977 by a group led by New York businessman Andrew DeLillo, who then renamed it as the 20th Century. It was later sold to Herb Pastor, owner of the Coin Castle and Golden Goose casinos in Downtown Las Vegas, who renamed the 20th Century as the Treasury Hotel.

It went through further ownership changes and renamings, to the Pacifica and the Polynesian.

Hôtel San Rémo (1989-2006)

In 1989, it was purchased by Sukeaki Izumi, a Japanese industrialist and hotelier, who renovated it with an Italian Riviera ambience and renamed it the Hôtel San Rémo. He paid a reported $30 million for the purchase and renovation. In 2002, the hotel, casino, and restaurants were refurbished. The hotel had 711 rooms while the casino had 30,000 square feet (3,000 m2) of space.

In 2004, Izumi’s company, Eastern and Western Hotel Corp., began looking for opportunities to grow the hotel, to take advantage of the heavy development at the intersection of Tropicana and Las Vegas Blvd. since 1989. Hooters approached with a redevelopment proposal. Ultimately, a group of nine partners in Hooters of America acquired a two-thirds interest in the property, which was put under control of a joint venture, 155 East Tropicana, LLC. Plans were announced to redevelop the San Remo as a Hooters brand casino and hotel. Hooters of America, owner of the Hooters trademark, would receive 2% of revenue as royalties.

On April 18, 2005, Hooters announced a $190 million upgrade of the property, including increasing the casino to 35,000 square feet (3,300 m2). All of the hotel rooms would be remodeled, the pool would be tripled in size, and the number of restaurants would be increased from 4 to 8 and include the second largest Hooters restaurant in the world. The renovations would reduce the number of rooms to 696 by converting rooms into larger suites.

Hooters Casino Hotel (2006-present)

On February 2, 2006, the weekend of Super Bowl XL, Hooters Casino Hotel officially opened its doors with a large orange carpet welcoming not only the public but many stars including KISS bass player Gene Simmons. Former Miami Dolphins quarterback Dan Marino opened Dan Marino’s Fine Food and Spirits restaurant on the same day the casino/hotel opened.

In January 2007, 155 East Tropicana accepted an unsolicited offer from Hedwigs Las Vegas Top Tier, a joint venture of NTH Advisory Group and Silverleaf Real Estate, to buy the property for $225 million (including assumption of $130 million in debt). Hedwigs planned to redesign and rebrand the casino once again, as a “lifestyle, entertainment-driven boutique hotel”. Analysts called the agreement “curious” given Hooters’s poor earnings performance. The deal fell through in June 2008 when Hedwigs failed to make a required payment.

With revenue declining, the casino began defaulting on loan payments in April 2009. Canpartners Realty Holding Co., a subsidiary of Canyon Capital, bought up much of the company’s debt at a heavy discount and planned to foreclose on the hotel. The owners, seeking to block foreclosure, filed for Chapter 11 bankruptcy in August 2011, listing only $63 million in assets against liabilities of $163 million. After a planned February 2012 auction attracted no outside bidders, the bankruptcy court approved Canpartner’s $60 million credit offer for the property, with the sale expected to close around March 30. The Navegante Group was approved to manage casino operations, while Canyon Capital said it was seeking a major hotel chain to take over and rebrand the property.

In May 2015, Canyon Capital sold the casino to Trinity Hotel Investors, based in New York, for $70 million. At first, Trinity was expected to rename the property and place it under the management of Holiday Inn, but they later decided to retain the Hooters branding. Trinity hired Paragon Gaming to replace Navegante as the property’s operator in 2016.

Facilities and entertainment

Shows at Hooters have included Prince tribute show Purple Reign, male revue Men of X, topless revue Raack N Roll, and the Dirty Joke Show.

Comedian Bobby Slayton performed in the Nite Owl Showroom from April 2007 to March 2009.

Hotel revenue

Hooter’s has one of the lowest gaming revenue for a Strip casino, but has one of the highest ratio of non-gaming to gaming income.

Net operating revenues for 2009 is down 23.58% for the first 9 months. The casino had an operating loss of $5.55 million in 2006, $0.96m in 2007, $6.19m in 2008, and $4.26m for the first 9 months of 2009. The first quarter of 2010 the casino had an operating income of $11.23m.

Other use of name

There is another Hooters branded casino, which is unrelated to the Las Vegas property, called Hooters Owl Club Casino, located in Spokane Valley, Washington. It is owned and operated by HootWinc, Inc. a Hooters restaurant licensee based in Oceanside, California. While the Hooters restaurant there closed in early January 2014, the Owl Club Casino remains.

Courtesy of wikipedia.org

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