The Downtown Grand casino hotel in Downtown Las Vegas is up for sale, according to local reports citing sources close to the deal. The asking price is said to be in the range of $100 million to $180 million.
The 1,124 room Downtown Grand is owned by Los Angeles-based real estate investment firm CIM Group, and is operated by Fifth Street Gaming. CIM opened the casino hotel near Fremont Street in 2013, but various casinos had occupied the site since 1979. Neither CIM nor Nevada-based Fifth Street have commented on any potential sale as of yet.
The Downtown Grand
The casino hotel last year celebrated its 10th anniversary, having opened for business on October 27, 2013. CIM spent $100 million acquiring the land, and then a further $100 million redeveloping and rebuilding the former Lady Luck casino into its new form.
The Downtown Grand opened with 24,000 square feet of casino space, 629 guest rooms, and nine bars and restaurants. Fifth Street has since added a further hotel tower to the property. The Gallery Tower opened in September 2020, giving the property an extra 495 hotel rooms, for a total of 1,124. It made the property one of the larger hotels in the Downtown area of Sin City.
The newer additions to the Downtown Grand include the use of AR and VR experiences throughout. In more recent news, the casino had to pay $750,000 to settle a class action lawsuit over claims it discriminated against disabled employees.
Fifth Street Gaming also operates the Silver Nugget casino and Ojos Locos Sports Bar and Casino, with both properties in North Las Vegas, and the Golden Tiki Restaurant in Chinatown.
The Sale
At $100 million on the low end, the sale could represent a substantial loss for CIM on the headline investment in the property. Although Las Vegas’ gambling revenues have been smashing records in recent years, so it could conceivably have more than made the additional $100 million back through its operational contract with Fifth Street.
Even if it hits the $180 million top line asking price suggested, this sale will be nowhere near the scale of the huge moves that took place on the Las Vegas Strip in recent years.
That includes VICI Properties’ 2022 purchase of the land and property of the MGM Grand Las Vegas and the Mandalay Bay from Blackstone for $5.5 billion.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
