Wonder why we’re poor? Here’s the type of thing that happens here.
In 2014, the biggest thing in tourism and historic preservation was the purchase of the derelict Castañeda Hotel in Las Vegas by veteran developer Allan Affeldt, who successfully restored La Posada Hotel in Winslow, Arizona.
The Castañeda, like much of Las Vegas, is a rundown remnant of yesteryear that’s been the object of hopes and what ifs. In 1898 it was Fred Harvey’s first hotel; it closed in 1948. This is a project only “an eccentric investor like me” would want, Affeldt says.
In the hospitality business, you need a certain size to make the investment worthwhile.
“The Castañeda was kind of an enticing project,” he says, but bathrooms are down the hall. To provide modern amenities, a restoration would reduce 45 rooms to 25. “It was hard to justify the investment given the size.”
Also in 2014, Affeldt bought a second historic Las Vegas property, the Plaza Hotel, out of foreclosure. He made improvements and turned it around. (I stayed there before and after. His team worked wonders.)
“I figured maybe by putting the two together, I could make it work,” he says. He needed New Markets Tax Credits and began negotiating with the New Mexico Finance Authority.