History
In 1955, Ben Jaffe, an executive of the Fontainebleau Miami Beach, came to Las Vegas and bought a 40-acre parcel at the corner of Las Vegas Boulevard and Bond Road (now Tropicana Avenue). Jaffe aimed to build the finest hotel in Las Vegas, featuring a Cuban ambience, with four room themes for guests to choose from: French Provincial, Far East, Italian Renaissance, and Drexel.
Construction ran over schedule and over budget, due in part to competition for labor with the under-construction Stardust down the road. Jaffe had to sell his interest in the Fontainebleau to complete the project, which finally opened in April 1957.
Jaffe first leased the property to his associate, Phil Kastel. The Gaming Control Board raised suspicions over Kastel's links to organized crime, which were confirmed in May when a note bearing a Tropicana earnings figure was found in the possession of mobster Frank Costello. Jaffe next turned to J. Kell Housells, owner of the Las Vegas Club. By 1959, Housells bought out Jaffe's interest, gaining a majority share in the Tropicana.
In the 1960s, the Tropicana fared poorly from competition with larger hotels like Caesars Palace and the Las Vegas Hilton. Houssels sold out in 1968 to Trans-Texas Airways. Deil Gustafson took control in 1971, but sold a 51% share to chemical heiress Mitzi Stauffer Briggs in 1975. Briggs began construction of the 22-floor Tiffany Tower in 1977.
A skimming operation by Kansas City organized crime members was discovered, and the owners were forced to sell out. Ramada Inns, Inc. bought the Tropicana in December 1979.
A 21-story Island Tower was constructed in 1986.
Ramada spun off its gaming properties, including the Tropicana, in 1989 as Aztar Corporation. Aztar was acquired by Columbia Sussex in January 2007, but Columbia's gaming businesses went into bankruptcy in May 2008.
The Tropicana, which had a $440 million secured loan against it, was bought from the bankrupt company in July 2009 by its creditors, led by Canadian private equity firm Onex Corporation and former MGM Mirage CEO Alex Yemenidjian, who took over as CEO.
The remainder of Columbia Sussex's gaming arm, reorganized under new ownership as Tropicana Entertainment Inc., promptly sued the Las Vegas property, demanding royalties for use of the Tropicana name. The case was settled in August 2011, with the Tropicana Las Vegas receiving exclusive rights to use the name in the Las Vegas region, royalty-free.
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