Failed casino resort scheduled to be sold at foreclosure auction on October 30
The nine-story hotel tower of the failed Lucky Dragon Las Vegas boutique casino resort closed doors Tuesday, October 2. The hotel’s closure came after the casino and food and beverage facilities at the north Strip property were shuttered this past January.
The Lucky Dragon opened doors in November 2016. Located on the underdeveloped northern part of the legendary Las Vegas Strip, the property was the first hotel and casino resort raised from the ground up in the popular gaming and entertainment hub since the recession.
It was built to cater to Asian high rollers, but never really turned up profit. Owners announced early this year that the casino portion of the property would be closed. The Lucky Dragon then faced foreclosure and eventually filed for Chapter 11 bankruptcy in February.
According to court papers, the property recorded monthly operating losses of around $200,000 throughout its Chapter 11 bankruptcy and this eventually necessitated the closure of the nine-story, 200-room hotel.
Court papers also indicate that the 2.5-acre boutique resort is expected to be sold at a foreclosure auction scheduled for October 30.
Local news outlet the Las Vegas Review-Journal has reported that California businessman Alex Meruelo, who recently purchased the SLS Las Vegas, has expressed interest in buying the failed Lucky Dragon. Several other prospective buyers have, too, emerged recently.
What Caused Lucky Dragon’s Swift Failure?
The Lucky Dragon was built in an area in Las Vegas that has historically remained underdeveloped and sees much less foot traffic than other parts of the city. According to many owners of Las Vegas casinos as well as to industry experts, the location of the property was one of the factors to have played an important role in its quick demise.
In addition, its focus on Chinese high rollers was too “narrow” and too “competitive”, according to former Hard Rock Hotel CEO Richard Bosworth. In comments to local media, Mr. Bosworth has also pointed out that a boutique property can do very well in Las Vegas as long as it features the right amenities.
The casino portion of the resort was too tiny by Las Vegas standards.
The Lucky Dragon, with its two separate buildings, was an Asian-themed resort and aimed to cater mostly to high roller customers from China and the Asia-Pacific region as a whole. However, industry experts believe that it failed to provide that customer group with top-flight entertainment and dining options, which eventually contributed to its swift failure.
The casino portion of the boutique resort occupied 27,500 square feet. Many considered the gambling facility too tiny by Vegas standards and this, too, is believed to have affected its lure to customers not only from Asia, but as a whole.
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