Hooters Hotel’s Next Act Now in Canyon Capital’s Hands
- Mar 07, 2012
Hooters Hotel is on track to change hands by March 30 after its principal creditor, an affiliate of Canyon Capital Realty Advisors, was the sole bidder in a bankruptcy sale last month. The affiliate, Canpartners Realty Holding Company IV, offered a $60 million credit bid for the 696-key property located on East Tropicana Avenue.
By announcing the amount of its bid in court two months ago, Canpartners apparently discouraged other prospective bidders, Innovation Partners managing director Matthew Sodl, who marketed the hotel on behalf of its previous owners, told the Las Vegas Review-Journal. Initial projections had placed the property’s auction value at up to $80 million.
Canyon Capital did not immediately disclose its plans for the property, which has undergone numerous branding and ownership changes since opening in 1972 under the Howard Johnson’s flag. As the Review-Journal noted, however, the firm has previously renovated and re-branded ailing properties in Las Vegas.
In 2007 Canyon Capital provided a $56 million acquisition loan for the property then known as the Debbie Reynolds Hotel and Casino. Located on Convention Center Drive, the hotel was renovated and re-launched as the Greek Isles Hotel and Casino. When the owner defaulted on the loan two years later, the asset reverted to Canyon Capital. The hotel has since been re-branded as the Clarion Hotel and Casino.