Greek Isles changes hands
The Greek Isles will remain open -- for now.
The property's loanholders completed a foreclosure and acquisition of the hotel-casino last week. And the new ownership group said Wednesday it intends to keep the property open "while assessing the hotel and casino's future."
Canpartners Realty is the holding company for Los Angeles-based Canyon Capital Realty Partners and Bronx, N.Y.-based Spectrum Group Management.
"We are now focused on assessing the property and developing a plan to move forward," Richard Bosworth, Canyon senior director, said in a statement announcing the acquisition. "We want to make it clear that ownership is committed to keeping the Greek Isles Hotel and Casino open for business as we determine the next steps for the property."
The Greek Isles, formerly the Debbie Reynolds Hotel, has 202 hotel rooms in a 14-story tower on about 6 acres on Convention Center Drive west of the Las Vegas Convention Center.
The property has a restaurant, showroom and a slots-only casino with nearly 90 machines operated by United Coin Machine Co., which has run the casino since 2001 under a lease agreement.
Canyon and Spectrum provided a $56 million loan in 2007 to an investment group to buy the property for $83 million.
GIH-SPE II, a group led by developer Harold Rothstein, defaulted on the loan in August 2008 and filed for Chapter 11 bankruptcy protection in Delaware in April.
Canpartners filed a lawsuit in January asking for a receiver to take over the hotel's operations from Illinois-based hotel operator Mark IV Hospitality.
Rothstein had planned to implode the property in late 2008, replacing it with two towers with 780 hotel rooms, 77,000-square-foot casino and 71,200 square feet of convention, retail and restaurants.
Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
A BRIEF HISTORY
1972 -- The Royal Inn's casino operations are acquired by Michael Gaughan and business partner Frank Toti. They finance the deal using the profits from their dealing school.
January 1980 -- Royal Americana Hotel and Casino is bought by a New York-based food service company Horn & Hordat Co. The company closed the property March 1, 1982, due to poor performance.
November 1983 -- The renovated and family-themed Paddlewheel is opened by an investment group led by board members from Horn & Hordat. It closes October 1991.
June 1993 -- Debbie Reynolds Hotel opens but files for bankruptcy in July 1997. The property stopped operating the casino in March 1996.
August 1998 -- The World Wrestling Federation buys the property in bankruptcy, but a $100 million redevelopment never happens.
July 2001 -- Newly themed Greek Isles opens. Chicago-based Mark IV Realty Group acquired the property from the WWF in December 2000.
July 2007 -- An investment group led by DI Development acquires the property, announces plan for a redevelopment but files bankruptcy 21 months later.
ARNOLD M. KNIGHTLY/REVIEW-JOURNAL
