Hooters cancels sale

Jun 10, 2008 7:02 PM

By David Stratton | Good news for fans of spicy chicken wings and busty, T-shirt clad hostesses: Hooters has scrapped the sale of its Las Vegas hotel/casino.

The owners of the Hooters resort, 155 East TropicanaAve., LLC, announced Monday it was terminating the purchase agreement after the buyer, Hedwigs Las Vegas Top Tier, failed to make a $500,000 payment by June 6.

"The buyer did not make the payment," the company said in a release. "Accordingly the agreement terminated on June 6."

Santa Monica, California-based Hedwigs had paid $5.5 million toward a purchase price of $98 million.

In its release, Hooters said the amounts paid by Hedwigs are "non-refundable."

Hedwigs officials were unavailable for comment at press time Monday.

If the sale had proceeded, Hedwigs planned to renovate and re-brand the 696-room property as an upscale boutique hotel.

According to renderings released earlier this year, the remodeled hotel would have featured a rooftop nightclub, and the cabanas at the pool would have been separated by waterfall curtains and islands.

One of the reasons for upscaling the property was that its recent appeal has mostly been to the lower-end market. Rooms lately have gone for as little as $59 a night and routinely sell for $109 or less, except on Friday and Saturday nights.

Earlier this year, the founders of Hooters sold their 22 restaurants for $55.1 million. They bought the Hotel San Remo Hotel in Las Vegas four years ago for $67.5-million and opened it after a sweeping renovation under the Hooters brand in February 2006.