New owners of Atrium say property will reopen in 18 months or less
6 January 2012
The closed Atrium Suites Hotel in Las Vegas could reopen in 12 to 18 months after its purchase for $4.2 million by Atrium Holdings LLC, an investment group led by The Siegel Group Nevada Inc.
The 202-suite property is on 3.75 acres on Paradise Road, next to the Hard Rock hotel-casino.
Formerly called the Crowne Plaza, it closed for renovations in 2008 but never reopened after its lender, Lehman Brothers Holdings Inc., filed for bankruptcy that year. At that point, just as the recession was getting under way, the property was valued at $66 million.
The investment company LV Opportunity Fund acquired the property out of the Lehman Brothers bankruptcy, then sold it to the Siegel-led group.
The sale was completed last month after two competing companies — Siegel and LV Hotel Partners LLC — separately filed suit in Clark County District Court demanding thatLV Opportunity Fund sell the property as it allegedly agreed to with both firms.
LV Hotel Partners LLC later dropped its lawsuit, and LV Opportunity Fund never responded to the lawsuits.
Besides the nearby Rumor hotel, The Siegel Group has boutique properties Artisan, Gold Spike Hotel & Casino and the Resort on Mount Charleston, along with a group of apartment complexes.
Michael Crandall, director of business affairs for Siegel, said Friday that planning was under way for redevelopment of the six-story hotel with a reopening possible after a year to 18 months. He said that although a potential gaming component for the property had not been discussed, it hadn’t been ruled out.
“All possibilities are on the table,” he said.
Siegel Group said the property was unique in that each of the suites was larger than 500 square feet. It said the common areas contained “substantial” conference, meeting and exhibition space, banquet facilities, a full-service restaurant, a bar-lounge, a fitness facility, a hair salon and an outdoor pool and bar area.
“This acquisition represents an incredible redevelopment opportunity for The Siegel Group,” the company said in a statement. “The company will immediately begin design and business concepts and engaging in talks with several large hotel brands interested in the Las Vegas market and the superior location of the asset. Potential uses for the now vacant property include a new boutique hotel concept ... or to operate the property under a national hotel flag."
Siegel said it had created about 900 local jobs over the last few years and estimated the Atrium Suites project would result in the creation of 200 to 300 new full and part-time positions.
“While the last few years have been extremely challenging for us all, we as a company continue to tough it out and stay focused aiding the market’s recovery by acquiring distressed and non-operational properties that we are able to reposition and stabilize. Our projects have resulted in the creation of improved assets and, more importantly for Las Vegas, numerous jobs,” said Stephen Siegel, CEO of The Siegel Group.
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