The same month the Siegel Group acquired the Travel Inn, developer Greg Covin tied up the Gold Spike, saying he would acquire the property for approximately $16 million and invest an additional $10 million in a renovation of the property. Instead, he acquired the asset and flipped it to Siegel and Tippins, who were willing to pay a $5-million premium in order to assemble the full half block, increasing the long-term value of both assets.

"We paid a lot of money but with the renovation and the renewed energy and what we will bring to the table in the way of marketing and promotion, we will create a lot of value," Siegel says. "In the long run it's worth it."

Built in the 1980s, the Gold Spike had a very loyal clientele until the owner that preceded Covin made changes that included the removal of the table games, Crandall says. That combined with deferred maintenance prompted regulars to drift toward El Cortez, a similar budget-oriented hotel in Downtown that recently underwent a renovation.

"We want to win their business back," he says.

The Gold Spike will be renovated over the next 12 months. At the top of the list is the casino area, which will get new flooring, a new bar, a stage for live music, a pizza place and more. The lobby area will include a new check-in area, remodeled bathrooms and a new promotions booth. The exterior will be fully refurbished, the surrounding sidewalks and parking areas will be improved and new signage will be added, including a large video board similar to the one recently added to the El Cortez. The hotel rooms also will be renovated with new windows, new paint and carpet, new fixtures, etc.

Unlike Covin's plans, the property will remain open during the Siegel Group's renovation with room rates ranging from $65 to $80 per night. A third-party will operate the Gold Spike casino until Siegel and Tippins can a license to operate the casino on its own, a process that could take a year or more.