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