February 4, 2008
LAS VEGAS — The Siegel Group Nevada, Inc., and Tippins Holdings, LLC, today announced that they have completed the acquisition of the Gold Spike Hotel & Casino located in Downtown Las Vegas. The purchase price was $21 million. The hotel, which is a non-restricted gaming facility containing 112 rooms, restaurant and bar-lounge is comprised of four parcels situated on approximately one acre and is contiguous to the former Travel Inn; a 58-unit hotel situated on ½ acre that was recently acquired by The Siegel Group Nevada in anticipation of the planned acquisition of the Gold Spike. The buildings, which suffer from years of deferred maintenance issues, are currently being renovated and the combined parcels master planned for the future development of additional structures for a large boutique hotel-casino which will further expand gaming and hotel operations and include the addition of retail components. A third-party gaming operator will continue to manage the Gold Spike casino which along with the hotel, restaurant, and bar-lounge will remain operational throughout the renovation process which will be completed in phases. Phase One, the renovation of The Gold Spike and former Travel Inn, will begin immediately and consist of installing new signage, remodeling the exterior façade and existing hotels rooms as well as the gaming, restaurant, and bar area. Additionally, a substantial streetscaping effort to create curb-appeal is planned which will focus on landscaping and lighting the surrounding sidewalks and parking areas. The additional phases to expand operations and combine the parcels are scheduled to be completed throughout the next few years.
Located in the heart of the Downtown gaming district, The Gold Spike Hotel & Casino is surrounded by some of Downtown Las Vegas’ premiere destinations and landmarks such as the famous Fremont Street Experience; a seven block open-air pedestrian mall visited by an average of 21 million people each year and the Fremont East Entertainment District which contains a variety of new nightclub and dining venues that have successfully attracted younger residents to the area. Additionally, the property is situated directly adjacent to the Lady Luck Casino which is being developed by the CIM Group who will soon be releasing their much anticipated renovation plans that will include a major restoration of the existing hotel-casino as well as the creation of a retail and entertainment corridor to attract pedestrian traffic.
Stephen Siegel, President and Chief Executive Officer of The Siegel Group Nevada, Inc., states “We are extremely excited about our acquisition of the Gold Spike Hotel & Casino and to have secured a property with additional parcels for expansion and an unrestricted gaming license. We are young guys that are very hands-on with tremendous energy and new ideas and we are 100% committed to transforming the Gold Spike into one of the hottest hotel-casinos in Downtown Vegas. We share in the vision of Mayor Oscar Goodman and staff who have done an incredible job promoting and redeveloping the area. While our immediate focus is to operate the property while making much needed capital improvements, we are also focused on taking a lead role in the revitalization efforts that are occurring and helping to clean up the surrounding area and attract further investment.”
About The Siegel Group Nevada, Inc.
The Siegel Group, a Commercial Real Estate Investment & Business Development Company founded by Stephen Siegel with offices located in Las Vegas, Nevada and Studio City, California, specializes in the acquisition, disposition and development of under-performing, valued added real estate and businesses with significant turn-around potential. The company´s extensive expertise in the areas of operations, management, finance, marketing, branding, leasing, renovation, design, entitlements, construction, and redevelopment enable The Siegel Group to elicit an operational turnaround on the assets it acquires which include a variety of businesses and a commercial real estate portfolio comprised of multi-residential apartment complexes, extended-stay, boutique resorts, hotel-casinos, retail and office. The Siegel Group is actively seeking new investments and joint-venture opportunities with upside potential. For more information on The Siegel Group and its affiliates, visit the Company´s website at https://siegelcompanies.com.
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