The Cal Neva Resort & Casino sits shuttered now, but in its heyday, it was a beacon for the glitterati. How it could it not be? The resort and casino, which straddles the border between Nevada and California, in North Lake Tahoe, was once owned by Frank Sinatra and his rat pack pal, Dean Martin.
Even before Sinatra bought the hotel in 1960, it had lore. It’s said that the actress and Hollywood “It Girl” of the time, Clara Bow, visited the resort in 1930 and ran up a gambling debt of $13,000, which in today’s money would amount to around $250,000. As the tale goes, she refused to pay, claiming that she thought the $100 chips she was betting with on blackjack were only 50-cent pieces. Her declination became a national scandal.
John F. Kennedy was known to summer at Cal Neva and, in 1935, an agent for MGM discovered a young talent named Frances Ethel Gumm while she was singing at the resort. Gumm shortly after changed her name to Judy Garland.
Its thread to Hollywood exists still today. The 2018 film “Bad Times at the El Royale,” starring Jeff Bridges, Jon Hamm and Dakota Johnson, was inspired by the Cal Neva, with set designs built to mimic the famed resort’s infrastructure.
Unlike Hollywood, however, not everything at the Cal Neva has been glitz and glamor. In fact, many suspect the hotel of being cursed.
[embedded content]Trouble Ahead
Ol’ Blue Eyes divested from the resort starting in the 1960s; from then on, it’s had a cavalcade of owners, including, at one time, Las Vegas real estate heavyweight Kirk Kerkorian. In 2018, the resort was acquired by Oracle founder Larry Ellison for $35 million, before he sold it in 2023 to Denver real estate company McWhinney for an estimated $58 million.
Like Hollywood, the drama of the hotel came in its intervening years. In 1985, Cal Neva was acquired by real estate developer Chuck Bluth, who renovated and restored the exterior of the main building back to its original look. But as Lake Tahoe fell out of favor as a gambling mecca, the property aged and fell into disrepair. In 2010, it ceased operations.
Three years later, an affiliate of California development company Criswell Radovan acquired Cal Neva from its lender who had foreclosed on the resort. Criswell Radovan intended to restore the property back to its former glory, but by pivoting away from gaming, with a focus more on the outdoor and recreational experience. “We want to change to a lifestyle destination,” Robert Radovan told the Tahoe Quarterly at the time. “You can’t have a successful casino without having a successful resort.”
Criswell Radovan raised some $20 million in equity and lined up $29.5 million in additional financing, ultimately drawing down $19 million of it. Guestrooms were renovated and around 95% of the project was completed. The remaining 5% was where the trouble started. A close to 100-year-old structure has its deficiencies and, in the case of Cal Neva, the city determined late in the project that the entire building foundation and fire life safety system would need a complete overhaul. This resulted in a massive increase in the construction cost that made the project infeasible.
In June 2016, the entity that owned the property filed for Chapter 11 bankruptcy. Initial reports that the company reneged on its financial obligations were untrue. According to court records, the loan was not only repaid in full, but the lender received approximately $9.5 million more than what it loaned on the project. In addition, the contractor and the subcontractors were compensated in full for their work. Meanwhile, the Criswell Radovan affiliate won a judgement against a group of its minority investors.
A New Life
That plot point in the story of Cal Neva is over, and the current owner is hopeful that the curse of the property has been lifted. Current owner McWhinney partnered with Proper Hospitality to convert the Cal Neva as a Proper-branded resort. Proper currently operates hotels in downtown Los Angeles, Santa Monica, Austin and San Francisco. Proper’s website states that the new Lake Tahoe Proper Resort & Casino will open in 2027 with 198 guestrooms, suites and private villas, two lakefront pools, multiple restaurants and bars, a casino and, of course, the historic Frank Sinatra Theater.
“The Cal Neva is one of those rare places that transcends hospitality. It’s an icon of American culture with a deep history and a lasting connection to Tahoe and to many of us who grew up spending time there and still see it as one of the most special places on earth. Reviving a property with this kind of legacy is both a privilege and a responsibility we take seriously,” said Brian De Lowe, co-founder and president of Proper Hospitality.
Redesign of the property is being led by Kelly Wearstler, a sort of celebrity designer, well known in the hospitality space for her past work on the Viceroy Hotels brand. She has also done work for clients such as Gwen Stefani and Cameron Diaz. Wearstler is married to Brad Korzen, who, along with De Lowe, co-founded Proper Hospitality in 2014.
Cal Neva is Proper’s third collaboration with McWhinney. “The Cal Neva deserves a revival that honors its past while making it relevant and inspiring for the next generation,” De Lowe said.
