Lucky Dragon Sells for $36 Million to Construction Equipment Company

13 Comments

• Doug" height="43" width="43">
  Doug April 24, 2019

  BTW Bob Stupak would have made a mint out of this place. The worse the location, the easier it is to trap the rubes and vacuum out their cash. Tease them with a bizarre promo package with dubious goodies.

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  William Wingo April 24, 2019

  Amen. Bob was really one of a kind. He used to say because he was Polish, he lost money on every transaction--but made it up on volume.

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  Andrea April 25, 2019

  Stupak times were totally different,he would have gone banrkrupt in a month if he'd ever tried some of his gimmicks in today's market...

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  Pete B April 24, 2019

  I have heard that Aherns is deeply involved with the Planet 13 guys. How involved, dunno. Maybe they are going to make it a weed hotel/distribution center. That would not surprise me.

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  alex April 24, 2019

  If they're smart, they will attach the new hotel to one of the major hotel groups (Marriott, Hilton, IHG). Lots of people are very loyal to their preferred hotel group...to the point where they will stay in an out-of-the-way location just to get a perk like free breakfast or the chance of an upgrade. But, that strategy also means that the national sales team for the hotel group will be selling the location as a option for meeting planners. That can be huge for a hotel like this one. Finally, aligning with a hotel group means access to corporate business travels from large corporations. Most large companies direct their employees to one hotel group in order to maximize discounts (which are based on volume). Becoming a Marriott/Hilton/IHG-branded hotel would help get heads in the beds.

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• Vegas Insight" height="43" width="43">
  Vegas Insight April 23, 2019

  So, will there be maintenance of a gaming license for the property... the once every two years deal, or whatever it is, where the temporary trailer rolls onto the lot? Not sure how much hotel/conference demand there is at the site, but if it can make a buck or two annually, and it's gaming ready for the day when the north strip fills in, about 100 years from now, then that $36M investment is going to be worth $1 billion.

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  Andrew April 23, 2019

  My thought exactly,will the new owner be interested in having a gaming license? The way I see it this place will be a parasite hotel for resorts world,pretty much like the holiday inn boardwalk was. By then they may be interested in becoming a slot joint too..

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• doug" height="43" width="43">
  doug April 23, 2019

  $1 billion value in 100 years is an appreciation rate of about 3.4%, not much better than inflation or putting your money in the bank. A bankruptcy sale like this, when he is paying well below the construction cost, could well return 50% or better. I agree the play probably depends on Resorts world etc. Once people are staying in it and booking meetings again, which will probably be in just a couple of years, it could well be worth at least the original investment of $98 million. If not, it will probably be a budget alternative to its neighbors like SLS and Stratosphere.

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  Daniel April 24, 2019

  100yrs?? Armageddon will be here way before that

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  Vegas Insight April 24, 2019

  A few of you folks take hyperbole way too seriously. But I enjoyed the mathematical analysis of hyperbole.

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  Gary April 23, 2019

  I'm thinking he will sit on it until Resorts World opens with the expansion of the convention center. Then he will easily double his money. That whole area will be going through some major changes over the next few years.

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  Dragon Steve April 23, 2019

  Aw man, I was hoping it would reopen as the Lucky Dragon. That place had such a relaxed, chill vibe.

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  Andrew April 23, 2019

  How the heck can somebody trust EB-5 money tied developers anymore after this ? Seriously,even the Circa EB-5 page looks like a total scam. Good luck to the new owner....heck, he must be doing very well at renting equipments if he can afford to part ways with 36$ milions...

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