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Lexi Hotel's Future Uncertain Amid $11.6M Debt and Multiple Liens

The Lexi Hotel's substantial debts and unpaid liens put its future at risk. Can owner Alex Rizk turn the situation around?

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1 min read
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is...
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Lexi Hotel's Future Uncertain Amid $11.6M Debt and Multiple Liens

Alex Rizk, CEO of Pro Hospitality Group, bought the Lexi Hotel in 2022 for $11.9 million. Despite investing $5 million in renovations, the hotel now faces severe financial struggles, with multiple liens and debts threatening its future.

The Lexi Hotel's location near the Sahara Avenue-I-15 interchange lacks direct access from Sahara Avenue, potentially hindering its appeal to guests. Rizk initially planned to transform it into Las Vegas' first 'cannabis-friendly' hotel, but this concept was later abandoned.

In 2024, the hotel began to accumulate debts. It has unpaid water and garbage bills, contractor fees, and room taxes, amounting to an outstanding debt of $11.6 million on a property loan. This could lead to foreclosure. Additionally, there are outstanding liens from contractors for heating and air-conditioning services ($70,635) and plumbing services (around $19,700). The hotel also has an unpaid room tax lien of roughly $30,000, which funds the Las Vegas Convention and Visitors Authority.

Rizk secured a 24-month bridge loan for the hotel but was unable to refinance due to the extended construction timeline and increasing interest rates. The hotel now owes approximately $114,200 in overdue property taxes and about $36,230 in penalties and interest.

The Lexi Hotel's future hangs in the balance due to its substantial debts and unpaid liens. With an outstanding property loan debt of $11.6 million and other unpaid bills, the hotel's survival is uncertain. The owner, Alex Rizk, faces a challenging task in turning around the hotel's fortunes.

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