Developers who want to convert the Royal Hotel into a boutique gaming resort say the hotel’s owners broke a lease agreement and listed the property for sale.
Authentic Entertainment Properties in 2010 entered into a lease agreement with Royal Hotel owners Michael Pashaie and David Taban in which the developers invested $3 million into the property to improve its restaurant, lounge, pool, and lobby areas.
The parties agreed to a 57-year lease agreement in May 2013, and Authentic obtained $65 million to begin the conversion into a gaming resort, but Pashaie and Taban changed their minds and backed out of the lease agreement, Authentic says.
In response, Authentic this month filed a Clark County complaint that seeks $100 million in damages from Pashaie and Taban for breach of contract and trying to sell the hotel and adjacent properties for $160 million instead of abiding by the lease agreement.
The Royal Hotel is located on Convention Center Drive about a half mile west of the Las Vegas Convention Center and about a block east of the north end of the Las Vegas Strip.
