Atari Hotel Las Vegas Plans Scrapped, Phoenix Focus

The ambitious plan to bring a gaming-themed Atari Hotel to Las Vegas has reportedly been abandoned. Six years after the initial announcement, the company is now focusing its resources on a single location in Phoenix, Arizona.

The Las Vegas deal ultimately "didn't come to fruition," according to a spokesperson. This marks a significant shift from the original vision of expanding the retro-gaming brand into eight major U.S. markets.

The Atari Hotel project was announced in 2020 with grand plans for expansion. The original vision included eight locations across the United States, with Phoenix designated as the first site.

Following Phoenix, the company planned to open hotels in:

• Austin, Texas
• Chicago, Illinois
• Denver, Colorado
• Las Vegas, Nevada
• San Francisco, California
• San Jose, California
• Seattle, Washington

However, the landscape has changed dramatically. Las Vegas is now officially off the table, and there have been no signs of development activity around the other planned locations.

Despite the setbacks, the Phoenix location is moving forward, albeit with a delayed timeline. Construction was originally scheduled to break ground in 2020, but the project experienced delays, largely attributed to the onset of the COVID-19 pandemic.

The current timeline projects a groundbreaking late this year, with an opening now planned for 2028. The project is described as a "playable destination" for gamers.

Additional sites, including Denver, are being explored under separate development and licensing agreements.

The company is putting its focus into the Phoenix site "for the time being," signaling a strategic pivot to a single flagship location before considering further expansion.

Financial hurdles remain a significant factor in the project's timeline. According to a December press release, the company is still in the process of raising capital to fund the development.

The required funding for the Phoenix "playable destination" is estimated between $35 million and $40 million. This fundraising effort is critical for the project to move from the planning phase to actual construction.

The delay from the original 2020 groundbreaking date highlights the challenges faced by the entertainment and real estate sectors in the post-pandemic economy. The company must secure this substantial investment before the late-year construction start can proceed as planned.

The scrapping of the Las Vegas location represents a consolidation of the Atari Hotels brand. Rather than a multi-city rollout, the strategy has shifted to establishing a successful flagship property.

This approach allows the company to focus resources and attention on a single project. The Phoenix hotel is intended to serve as a proof-of-concept for the gaming-themed hospitality model.

While the original announcement generated significant excitement across the gaming and real estate communities, the current reality reflects a more cautious, focused approach to development in a challenging market.

The future of the Atari Hotel brand now rests on the success of the Phoenix development. If the project can secure its funding and open successfully in 2028, it may pave the way for the revival of expansion plans in other cities.

For now, the Las Vegas location remains a concept that did not materialize. The gaming community and real estate investors will be watching closely to see if the Phoenix project can overcome its financial and developmental challenges to deliver the promised retro-gaming experience.