Investor Siegel looking to sell a few hotels in Southern Nevada

Las Vegas real estate investor Stephen Siegel is known for his chain of low-priced Siegel Suites apartment buildings — no credit check or leases needed, and renters can get a furnished place with utilities for $159 per week.

But he also owns hotels in Southern Nevada, and he’s been looking to sell a few.

Rumor Boutique Hotel, an off-Strip property, is listed for $18 million, and The Resort on Mount Charleston, a roughly 40-mile drive from the Strip, is listed for $3.65 million. Siegel says he also listed the Atrium Suites Hotel about five months ago without an asking price but now is thinking of turning the long-shuttered property, located next to the Hard Rock Hotel, into a higher-end, extended-stay property.

The founder of the Siegel Group Nevada Inc. owns dozens of commercial properties in the Las Vegas area, including his most recently announced purchase: the 40-unit Somerset Apartments, just off the north Strip and near where the recently imploded Riviera hotel-casino stood. The $6 million sale closed Sept. 1, and the new landlord plans to rename it Siegel Gardens.

The 45-year-old investor recently sat down with the Review-Journal in his penthouse at Turnberry Place, a luxury condo tower complex on Paradise Road. The interview has been edited for length and clarity.

Question: One of my first thoughts on the Somerset deal was that you’re planning to eventually sell it to the Las Vegas Convention and Visitors Authority, which has been buying up real estate for its convention center expansion project. What are your plans?

Answer: We thought it was a great opportunity, with really no plans that we’d buy it and flip it or anything like that. We’re real estate guys, and we feel that it’s a long-term hold for us. We see a lot of growth happening, and we think people want to be able to live in places where they don’t have to drive.

Q: I’ve read that you’re buying a lot of property in downtown Reno. Is that because of Tesla Motors’ new battery plant east of Reno?

A: I’ve been a property owner in downtown Reno for about 11 years. When the recession hit, we went back to Reno, and we were able to pick up a lot of opportunities.

Q: Were you getting stuff really cheap?

A: We were. People were scared, they didn’t know what to do. We knew people needed housing, so we started to convert old hotels to more of apartment accommodations.

Q: What do you think about the $1 billion development proposal for downtown Reno?

A: Absolutely never happening. The developers came to me and tied up two parking lots I had in downtown Reno, right in the heart of what was going on, and walked away from their deposits. As they’re in front of the City Council, I’m watching this thinking, ‘These guys just walked away, and they’re putting on this whole dog-and-pony show in front of the City Council, wasting everybody’s time.’ Our whole office is watching this, and we’re laughing. I think they walked away from $100,000 in deposits. They actually sent a guy in from out of town to buy the lots. The developers didn’t want us to know it was them — if we know it’s going to be a billion-dollar development, the price goes up.

(Note: Colin Robertson, director of communications and strategy for the Don J Clark Group, developers of the West 2nd District project in Reno, said the company is working on a “complex real estate project and we are working through the process.” He declined to directly address Siegel’s account of the sales.)

Q: What about Atrium? You had plans to renovate it and reopen it?

A: I was going to when I bought it, then I decided to sell it. We did nothing inside. We put it on the market about five months ago. A bunch of apartment guys were interested in it. When I started looking at the numbers, we figured we should probably open this ourselves as some kind of micro-apartment/extended-stay, something high-end. We’re going through it now, playing with designs.

Q: There haven’t been a lot of hotel sales on or near the Strip in the past few years. Hooters Hotel and Tropicana Las Vegas sold, but how do you feel about trying to sell Rumor at a time when sales are kind of slow?

A: I don’t know if they’re if necessarily slow.

Q: At least not as fast as they used to be.

A: Not as fast as they used to be, but that’s a good thing. You have more serious buyers than fantasy buyers.

Our focus is more on multifamily than it is on running a boutique hotel. I don’t love running a hotel in Las Vegas. It’s very tough to compete with the rooms on the Strip. If you picked up Rumor and dropped it in Los Angeles, you’d get triple the rate.

You bring it in Vegas, and it’s very tough. I wouldn’t mind selling it and deploying that money and buying something else.

Q: You’ve also been trying to sell The Resort on Mount Charleston for some time.

A: I could have sold it 20 times already. But I’m not in a rush. It’s not a fire sale. If I get the right price, and it’s the right buyer, I’d sell it. We’re doing better up there than we’ve ever done. I don’t know if it’s just the economy, if we’re getting better at what we do, or a little bit of both, but it’s doing well.

Q: Las Vegas is a very transient place. Does that bode well for the Siegel Suites chain?

A: No, because it happens with our employees, our tenants, with everyone. You have to stay a minimum of 30 days at Siegel Suites, but we’re looking for the guy who wants to stay 10 years. We have people who have been in our buildings for 20 years, and then you have some people who come to town, get a job, lose a job, their family is not here, so they leave.

Not a lot of people are from here, so they’re always going back somewhere. It makes it difficult to manage in an environment when everything’s not so stable.

Contact Eli Segall at or 702-383-0308. Follow @eli_segall on Twitter.

Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like