Downtown Project buys Gold Spike Hotel & Casino, doors close Sunday
The Gold Spike hotel-casino has been sold and will close on SundayPhoto: Video by ktnv.com
Las Vegas, NV (KTNV) -- The Gold Spike Hotel & Casino in downtown Las Vegas will close its doors at 3 p.m. Sunday, April 14.
Siegel Group Nevada and Downtown Project formally announced the real estate sale Thursday.
The Downtown Project says that it will announce redevelopment plans for the property later this year.
The Gold Spike opened in 1976. The Siegel Group acquired the 112-room hotel and casino in 2008. They also bought the vacant 58-room Travel Inn Motel directly adjacent to the Gold Spike.
Both of the properties were renovated shortly after.
The Downtown Project is headed by Zappos CEO Tony Hsieh.
The Downtown Project and RGG, an associated development company, now own about 61 properties in the downtown area. The value has been estimated at about $180 million.
Possible uses for the Gold Spike when it re-opens include a new boutique hotel or specialty retail center.
The hotel-casino is in a prime location. It is about one block from the former city hall which is being renovated for Zappos and is located across from The Ogden, where Hsieh lives.
The Downtown Project also bought the Western Hotel, previously owned by the Tamares Group, for $14 million in March.
In addition, the Las Vegas Club, also owned by the Tamares Group, announced yesterday that it is closing its hotel this month.
If the Las Vegas Club is eventually put up for sale and the Downtown Project makes the purchase, it would give Hsieh's group control of properties on both sides of the Fremont Street Experience.
Siegel and the Downtown Project say they will work together to place current employees at alternative locations.
According to Michael Crandall, senior vice president for the Siegel Group, says that they are planning to retain over 60 percent of the employees at the Gold Spike. They plan to keep them within the Siegel Group organization and place them at other sister properties around town.
For the Gold Spike employees that won't be retained, the Downtown Project is putting on a special job fair on Tuesday from 10 a.m. to noon and 1 to 3 p.m. at the Downtown Cocktail Lounge.
Anchor and reporter Rikki Cheese contributed to this story.