Siegel Group to Replace Shut Las Vegas Hotel With Apartments

The Siegel Group has moved forward with plans to replace a defunct hotel in Las Vegas with 480 “flexible-stay” apartments.

The locally based developer led by Stephen Siegel is in its “final stages” in obtaining permits to demolish the Atrium Hotel and build the six-story complex at 4255 Paradise Road, the Las Vegas Review-Journal reported, citing the CEO.

The developer is waiting for the completion of road work by Clark County. Siegel said he hopes to take the next steps by the end of this year and to “start as soon as we can.”

Siegel bought the shuttered 202-room hotel in 2012 for $4.2 million. The hotel, bought by Los Angeles investors in 2007 for $50.5 million in a deal financed by Lehman Brothers, fell into foreclosure during the 2008 recession.

In 2019, the Siegel Group announced plans to redevelop the boarded-up hotel, replacing it with a Siegel Suites near the now Virgin Hotel, north of Harry Reid International Airport. Siegel Suites offers flexible deals for furnished apartments at weekly or monthly rates without long-term leases, according to the brand’s website.

Siegel had hoped to move quickly — and that was five years ago. Now he’s waiting on Clark County to do some improvement work on nearby roads and washes.

A Clark County spokesperson said the county is going to reconstruct a wash and close an existing channel tunnel that are both near the Atrium Hotel site. It will also widen Paradise Road between Harmon Avenue and Sands/Twain Avenue.

There are no specific start dates for these projects, but the county hopes to start them in “the next few years,” the unidentified spokesperson said.

The Siegel Group, founded by Stephen Siegel in 2001 in L.A.’s San Fernando Valley, owns commercial and residential properties, including apartments, hotels, offices and shopping centers, across the U.S., according to its website.

In February, Siegel picked up nearly a half block of bar and restaurant buildings at 517, 523 and 525 Fremont Street, and 100 South Sixth Street, in Downtown Las Vegas for $11 million.

In 2022, Siegel bought 10 acres on and near the north Strip for $75 million, the company’s first purchase along the casino corridor, according to the Review-Journal.

— Dana Bartholomew