Two downtown Las Vegas casinos are closing their hotels. Both the Las Vegas Club and Gold Spike hotels appear to be closing in the next three weeks. Each of these properties will keep their casino floors open. They will just not offer any rooms to their guests.
Las Vegas Club Hotel Closing
The hotel at Las Vegas Club has only operated on weekends and major holidays since January 2012. The Las Vegas Club’s website now only allows weekend reservations through April 28th.
I called the Las Vegas Club to inquire about this and a reservation specialist told me that they found out just yesterday that the hotel at Las Vegas Club would close at the end of the month. He stated that it may open if the Plaza sells out but guests would not be able to reserve a room at Las Vegas Club after April 28th. He hinted that a renovation was in its future. A past Vegas Chatter post describes what a Las Vegas Club remodel might look like.
Plaza is the sister property of Las Vegas Club. The Plaza property underwent a $35 million renovation in 2011 that included new restaurants and completely refurbished hotel rooms. Both properties are owned by Tamares Group. This same company owned the Western Hotel, which closed in January 2012. The Western property has since been sold to the Downtown Project, a group headed by Zappos founder Tony Hsieh. This money could be what was needed to finance a much needed remodel of the Las Vegas Club.
The Las Vegas Club hotel has seen better days. The hotel receives more one star reviews on Yelp than any other rating. Most guests complain about damaged and dirty hotel rooms. The Las Vegas Club hotel is arguably the lowest end of all downtown Las Vegas casino hotels. The property offers no restaurants. Tinoco’s closed last year and the diner has been closed even longer. The only food option for Las Vegas Club guests is a hot dog from the main bar. Anyone that asks about restaurants is referred to the food court at the Plaza.
The back rooms of the casino floor closed in 2012. Frisky’s Bar closed and hundreds of machines were taken out of service. The entire Ogden side of the property sits empty, except for the Amazing Johnathan Haunted House, which is idle behind locked doors and walls.
Gold Spike Also Closing Hotel
According to Vegas Chatter, Gold Spike is closing their hotel after Sunday night through at least June. Gold Spike also recently closed their party pit where Three Card Poker and Blackjack were dealt. Gold Spike’s Facebook page has several questions from guests asking about the hotel closure that have yet to be answered.
Gold Spike’s boutique-style hotel could be the perfect match for a company willing to make a proper investment in the reemerging downtown Las Vegas market. This niche has been successful in other parts of Las Vegas.
Update: Gold Spike is telling their guests that a large party has booked the hotel though June but is not publicly discussing the situation. There is no word as to whether existing reservations will be honored. Gold Spike is deleting any questions about the situation from their Facebook page.
Update #2: Gold Spike will close their entire property at 3pm on Sunday, April 14th.
Other Downtown Hotel Action
The Las Vegas Club and Gold Spike would join Binion’s in the category of downtown Las Vegas casinos that are operating a casino with a closed hotel. Binion’s guests are referred to 4Queens, their sister property.
The Las Vegas Club hotel has a total of 410 rooms. About half of these rooms are in a tower that was taken out of service in 2011. Gold Spike offers 112 rooms to guests. These closures will remove about 300 hotel rooms from the downtown Las Vegas inventory. The new Downtown Grand, which will open on the site of the former Lady Luck property, will add 650 rooms to the downtown inventory this summer. It is possible that these moves are a preemptive strike to cut the losses on unprofitable hotels before the slowest time of the year and a new competitor joining the market.
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