Silverton president Rob Kunkle poses in front of the hotel-casino Wednesday, July 27, 2022. The Silverton recently announced a $45 million renovation project for the property which is celebrating its 25th anniversary this year.
Saturday, July 30, 2022 | 2 a.m.
An artist rendering shows a Rustic Single room Wednesday, July 27, 2022. The Silverton recently announced a $45 million renovation project for the property which is celebrating its 25th anniversary this year. COURTESY
Other Projects in Progress
The Silverton is closing its 300-room hotel and pool for at least five months as it undergoes a $45 million renovation delayed by the pandemic.
The resort’s casino, aquarium, restaurants and shops will remain open during construction, which starts Monday and is expected to be finished early next year.
“It’s going to be an entirely new hotel and pool experience,” casino President Robert Kunkle said. “We’re going to be a substantially improved product.”
The rooms will be Western-themed with rustic and modern touches, according to the Silverton, which is owned by California-based Majestic Realty Co.
The resort had plans for a major remodel before the onset of the pandemic in early 2020 put the project on hold. The start of the renovation is a signal the off-Strip property has come back strong in the past two years.
“It’s been a nice recovery for all of us in Las Vegas,” Silverton CEO Craig Cavileer said. “We’re ready now. Rather than do it in phases or chunks of rooms, we decided to do it all at once.”
While the Silverton will lose out on hotel revenue for a few months, the resort is in a healthy place financially, Cavileer said.
The property’s EBITDA — earnings before interest, taxes, depreciation, and amortization — margins have been hovering around 40% since reopening after a state-ordered shutdown in 2020. Nevada casinos were closed for more than two months starting in March 2020 to help stem the spread of the coronavirus.
Before the pandemic, the margin was closer to 28% to 35%, Cavileer said.
“We’ve had good operating margin, good return and good customer spend,” Cavileer said. “It’s been really good for us.”
Coinciding with the remodel, the casino is also marking its 25th anniversary. When the Silverton opened in 1997, some people questioned the viability of its location just off Interstate 15 at Blue Diamond Road.
But the area has since grown, including new housing and plans for a nearby $3 billion development with an NBA-ready arena, hotel-casino and amphitheater.
The arena project is backed by California investment firm Oak View Group and is spearheaded by former Las Vegas Raiders President Marc Badain.
Cavileer said the Silverton would only benefit from the arena project. “Certainly, if that project near us comes to fruition, it would be amazing,” he said.
