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Auction for Las Vegas Strip Real Estate's Diamond Inn Falls through Without Purchaser

The Diamond Inn on the Las Vegas Strip's southern end didn't attract a potential purchaser ready to shell out the minimum $12.5 million during the auction.

SymClub
Jun 5, 2024
2 min read
Newscasino
An aerial view of the shuttered Diamond Inn in Las Vegas. A recent auction for the motel with Strip...
An aerial view of the shuttered Diamond Inn in Las Vegas. A recent auction for the motel with Strip frontage failed to secure a minimum bid.

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Auction for Las Vegas Strip Real Estate's Diamond Inn Falls through Without Purchaser

The auction for the past Diamond Inn Motel, situated in the southernmost section of the Las Vegas Strip, didn't find a purchaser ready to cough up the $12.5 million minimum bid price.

The bidding window was closed last Thursday for the defunct motel by Alabama-based real estate auction firm J.P. King. Auction administrators notified the Las Vegas Review-Journal that significant interest was shown in the 48-bed hotel known for its iconic pink elephant standing outside for many years.

"Several earnest and interested buyers from across the globe were encountered during the auction, and many are still working through the due diligence process," said a J.P. King spokesperson.

Located on 1.36 acres and sporting 237 feet of road frontage on South Las Vegas Boulevard (the Strip), the motel is seated at 4605 S. Las Vegas Boulevard. The site is near the Mandalay Bay Convention Center and Harry Reid International Airport, and is also close to the celebrated "Welcome to Fabulous Las Vegas" sign.

A Diamond in the Rough

The motel is promoted as a "redevelopment opportunity" by the auction organization. The property is zoned for commercial use, with authorization for constructions reaching up to 505 feet (about 36 floors). This means a potential tower can be erected.

Despite limited street foot traffic, it's a prime spot for a casino developer – the motel's 237 feet of Strip frontage outstrip the Paris, MGM Grand, and Venetian casino resorts'.

The southern part of the Strip has witnessed a resurgence in recent years, largely due to the debut of the $1.9 billion Allegiant Stadium. The venue, hosting the NFL Las Vegas Raiders, is a half-mile walk away from the Diamond Inn.

"The Diamond Inn is within walking distance of all major attractions, offering a singular and exceptional investment opportunity for a world-class resort in a prime setting," stated the auction listing. "This site is more than its storied history. It's a development haven for those with vision."

Hotel History

Opened as a motel in 1955, the Diamond Inn has been left mostly as is throughout its existence, though it received a fresh paint job in 2016.

The motel was a hit among budget travelers in Southern Nevada for decades. The Diamond Inn held a 3.2/5 rating on Google. Late reviews, however, criticized the property for bed bugs, roaches, offensive odors, and restrooms requiring repair.

"Not the worst hotel in Las Vegas but darn close," reads a September review.

The motel closed in September 2023 after a 68-year span. The fate of its pink elephant is uncertain.

While the hotel's website claims the elephant was originally part of Disney World, no evidence supports this. The elephant once churned out trumpet sounds, but following a succession of vehicle crashes cited as being triggered by the startling audio feature, county officials demanded the hotel to deactivate the sound mechanism.

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