Bourbon Street Hotel and Casino

For the casino in Sparks, Nevada, see Bourbon Square Casino.
Bourbon Street Hotel and Casino
Location Las Vegas, Nevada 89109
Address 120 E Flamingo Road
Opening date May 1980
Closing date 18 October 2005 (18 October 2005)
Theme New Orleans
Number of rooms 166
Total gaming space 15,000 sq ft (1,400 m2)
Casino type Land-Based
Owner Harrah's Entertainment
Previous names Shenandoah Hotel

Bourbon Street Hotel and Casino was a small hotel and casino near the Las Vegas Strip in Paradise, Nevada. Opening in 1980 as the Shenandoah Hotel, the property was plagued with licensing and financial difficulties from the start. Ownership changed hands several times, with new proprietors often envisioning major renovations or redevelopment, but none of the plans came to fruition. Finally, in 2005, it was bought by Harrah's Entertainment (now Caesars Entertainment), who closed and demolished it.

History

Shenandoah Hotel (1980-1985)

The Shenandoah Hotel began as a $29 million project, named after the Las Vegas estate of minority investor, singer Wayne Newton.[1] The hotel had opened by May 1980, but the casino opening was delayed by a Gaming Commission investigation into hotel president John Harlow Tucker for a 1975 securities fraud conviction.[2] Tucker's license was ultimately denied, and he was ordered to sell his $1.8 million in shares.[1] Newton also pulled out, instead buying The Aladdin.[1] The hotel's landlord, Allarco Holdings of Edmonton, took over, and sought new investors to buy or lease the property, which was losing $500,000 a month.[1]

Allarco was acquired in January 1981 by Carma Developers Ltd., a Calgary-based real estate company.[3] Carma spent over two years trying unsuccessfully to sell the Shenandoah, before deciding to seek a gaming license to open the casino itself.[4] Nevada passed a law in June 1985, making it possible for Carma to become the first foreign firm to receive a gaming license in the state.[4] The property was reopened and rebranded as Bourbon Street Hotel and Casino.[4]

Bourbon Street Hotel and Casino (1985-2005)

In January 1988, Carma sold Bourbon Street to Las Vegas Investors Ltd., a firm run by two top executives of Hotel Investors Trust (now Starwood Hotels).[5][6] The following month, the firm turned around and sold the property to Hotel Investors Trust, along with the King 8 Hotel, for a total of $35 million.[6]

An agreement was announced in July 1995 to sell the property to Crown Casino Corp. for $10 million.[7] However, Crown abandoned the deal in November, losing a $500,000 deposit, citing the possibility of more attractive opportunities, a lack of attractive financing, and declining profits at the property.[8]

In August 1996, Starwood sold the property to Tarsadia Hotels for $7.8 million in cash plus $1 million in assumed debt.[9] Starwood cited a strategic focus on "full-service, high-quality hotels."[10] Tarsadia closed the property's casino and laid off its 400 workers, avoiding the complication of applying for a gaming license for its owner, Tusher Patel, who was not a U.S. citizen.[9] Patel planned to build a timeshare tower on the site, in partnership with an unidentified major casino company, but the plan was scrapped when the partner pulled out.[9]

In August 1997, Tarsadia agreed to sell Bourbon Street to Florida Gaming Corp., a jai alai operator, for $13 million in cash plus $1.5 million in stock.[11] The near-doubling of the hotel's value in the span of a year was attributed to rising property values on the Strip.[12] Florida Gaming planned to spend $6.5 million renovating the site.[11] However, the sale was never completed.

In April 2001, Tarsadia sold Bourbon Street to a partnership of Dallas-based real estate investor Michael Block, and the Red Sea Group of El Segundo, California, with a declared property value of $11 million.[13][14] With the property losing money, the partners immediately began discussions to redevelop or sell it.[13]

In 2003, Block began negotiating with Trevor Pearlman and Reagan Silber of Edge Resorts. Block bought Red Sea's stake in the partnership for $10.55 million and sold it to Pearlman the same day for $12.5 million. Four months later, Block sold his stake to Silber for $14 million. Block had not informed Red Sea of his negotiations with Edge, leading Red Sea to successfully sue Block.[13]

Edge Resorts planned to build the W Las Vegas condo-hotel project on the site, in partnership with Starwood. However, even after buying an adjacent apartment complex, bringing the site to 8 acres total, they decided they needed more space, and bought a 21-acre lot on Harmon Avenue.[15]

Edge sold Bourbon Street and adjacent properties to Harrah's Entertainment in March 2005.[16] Records filed with the county listed the total property value at $60.6 million.[14]

Harrah's decided to close Bourbon Street effective October 31, 2005.[16] On October 18, however, a water main broke, threatening the building's structural integrity, and the property closed early.[17] Demolition work began the following January, and the tower was imploded on February 14, 2006.[18]

Between 2005 and 2007, Harrah's had consolidated control of much of the east side of the central Strip, also acquiring the Imperial Palace, Barbary Coast, and much of the residential Flamingo Estates neighborhood north of Bourbon Street.[19][20][21] CEO Gary Loveman envisioned a mega-resort called Epicentre for the company's 350 acres.[22] As of 2012, the plan has not materialized, and the Bourbon Street site remains vacant.

Facilities

Bourbon Street had 166 hotel rooms, including 16 suites.[7]

The casino was 15,000 square feet (1,400 m2). As of 1995, it had 420 slot machines and 15 table games.[7] By the time it closed in 2005, it had just 100 slot machines, managed by slot route operator United Coin.[16]

References

  1. 1 2 3 4 Weiss, Clyde (14 October 1980). "Las Vegas deck stacked against Allard". Edmonton Journal. Retrieved 9 January 2012.
  2. ↑ Weiss, Clyde (13 May 1980). "Nevada looking at gambling license". Spokesman-Review. Retrieved 9 January 2012.
  3. ↑ "Carma takes over". The Leader-Post. 14 January 1981. Retrieved 9 January 2012.
  4. 1 2 3 Atkinson, Don (20 June 1985). "Carma awaits casino approval". Calgary Herald. Retrieved 9 January 2012.
  5. ↑ "Consolidated Carma sells Bourbon Street Hotel and Casino.". PR Newswire. 3 February 1988. Retrieved 9 January 2012.
  6. 1 2 "Woodland Hills Hotel Firm To Lease Las Vegas Casinos". Los Angeles Times. 14 June 1988. Retrieved 9 January 2012.
  7. 1 2 3 "Clarification Of Bw1066 Crown Casino To Purchase Las Vegas Casino". Business Wire. 17 July 1995. Retrieved 9 January 2012.
  8. ↑ "Note E". Quarterly Report (Report). Crown Casino Corporation. 13 December 1995. Retrieved 9 January 2012.
  9. 1 2 3 Steinhauer, Adam (30 April 1997). "Bourbon Street still in transition". Las Vegas Review-Journal. Retrieved 9 January 2012.
  10. ↑ "Starwood Lodging completes $7.8 million sale of Bourbon Street Hotel and Casino". Business Wire. 13 September 1996. Retrieved 9 January 2012.
  11. 1 2 Berns, Dave (8 August 1997). "Bourbon Street swallowed". Las Vegas Review-Journal. Retrieved 9 January 2012.
  12. ↑ Berns, Dave (11 August 1997). "Bourbon Street's value doubled in past year". Las Vegas Review-Journal. Retrieved 9 January 2012.
  13. 1 2 3 Red Sea Gaming, Inc. v. Block Invs. (Nevada) Co. (13 January 2010). Text
  14. 1 2 "Parcel Ownership History, Parcel 162-16-410-047". Clark County Assessor's Office. Retrieved 9 January 2012.
  15. ↑ Smith, Hubble (24 August 2005). "Development: W Hotel Takes Sin City Spin". Casino City Times. Retrieved 10 January 2012.
  16. 1 2 3 Stutz, Howard (30 Jul 2005). "Bourbon Street Casino Closing". Review Journal. Retrieved 4 April 2011.
  17. ↑ "Bourbon Street Casino closed early by Harrah's". Las Vegas Review-Journal. 18 October 2005. Retrieved 9 January 2012.
  18. ↑ "Vegas Today and Tomorrow". Retrieved 4 April 2011.
  19. ↑ Stutz, Howard (23 August 2005). "Imperial Palace sold: Harrah's keeps buying". Las Vegas Review-Journal. Retrieved 10 January 2012.
  20. ↑ Koch, Ed (18 December 2006). "Landowners stand in way of 'the gorilla'". Casino City Times. Retrieved 10 January 2012.
  21. ↑ Vogel, Ed (8 February 2007). "Regulators recommend land swap". Las Vegas Review-Journal. Retrieved 10 January 2012.
  22. ↑ Binkley, Christina (2008). Winner takes all: Steve Wynn, Kirk Kerkorian, Gary Loveman, and the race to own Las Vegas. Hyperion. pp. 278–280. ISBN 1-4013-0236-X.

External links

Coordinates: 36°06′54″N 115°10′02″W / 36.114869°N 115.167253°W / 36.114869; -115.167253

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