Friday, December 12, 2003
Copyright © Las Vegas Review-Journal

La Concha begins fade-out

Motel wing razed, rest to follow in six months, owner says

La Concha's razing will eventually clear the way for a new project, said the Doumani family, which owns the motel. The Doumanis gave few specifics about what sort of project will one day replace the Strip motel, which is across the street from the Stardust. Photo by Gary Thompson. A giant hydraulic claw reduces a wing of 100 rooms to rubble at La Concha on Thursday. The property's owners say the motel will operate for six more months before it, too, comes down. Photo by Gary Thompson.

First of all, Lorenzo Doumani wants to correct reports that he's "inherited" La Concha Motel from his father, Ed.

"The last time I looked, thank God, he was still alive," Doumani said Thursday as his dad stood next to him watching the demolition of a small Strip motel that his grandfather, M.K. Doumani, opened in 1961.

A giant hydraulic claw was ripping down a wing of 100 rooms at the motel across from the Stardust at 2955 Las Vegas Blvd. South, right up to the front office that doubles as an electric car rental center.

Pamphlets and giveaway magazines filled a table in the lobby and a bookkeeper took a call for reservations at $68 a night.

A nine-story tower is still standing in the background and, with 139 units at the former El Morocco motel next to it, La Concha will continue operating for another six months.

Then it's all coming down, Doumani said.

Details of what's going to replace the slice of old Las Vegas should be forthcoming by Jan. 8, when Doumani goes before the Clark County Planning Commission for use permit requests.

In 2001, the 5.4-acre site was approved for a 520-foot hotel tower and a separate 645-foot condominium tower with a shopping mall.

"It's going to be very unique, very different," said Lorenzo Doumani, chief executive officer of Majestic Entertainment, a film company in Las Vegas. "I'll give you a hint. The amenities will be unlike anything you've seen.

"It'll change the north end of the Strip. I think you're going to see the Riviera and Stardust will follow suit in three years. With Turnberry (Place) and (Steve) Wynn, the Strip has been working its way north. It's going to have to."

The Fashion Show mall underwent a multimillion-dollar renovation, The Venetian has announced plans for a new hotel and the sale of Wet 'n Wild water amusement park has fueled speculation of a new megaresort.

"You look at the landscape of the Strip, it's changed so much since about 1989, starting with The Mirage," Doumani said. "The real estate market has gone through the roof here."

Strip property is among the most expensive in the world at about $10 million to $15 million an acre, local real estate experts figure.

Doumani said his family has turned down offers of $40 million for the property that's appraised at $13.6 million for both motels.

What's lacking on the Strip are high-end rooms with exclusive amenities, he said.

Room rates are more than making up for fractionally decreasing gaming revenue, a trend that was brought to light about five years ago when research from the Las Vegas Convention and Visitors Authority showed that, for the first time, more people were coming here for reasons other than gambling.

"In the old days, rooms were a limited amount," Ed Doumani said. "Hotels only had 300 or 500 rooms and those rooms were used for one purpose and one purpose only, for gamblers.

"They spent $24 million to build Caesars (Palace) and when it was built the pundits said they were going to broke. Who'd spend $20 (million) to $25 million for a hotel? Now they're spending $1 billion."

Among the celebrities who've stayed at La Concha over the years are: Ronald Reagan, Ann Margaret, Muhammad Ali, the Carpenters and Flip Wilson, Ed Doumani said.