Even though strip clubs go up for sale every once in awhile and the amount of money that is asked for them is usually pretty high, some clubs have gone up for sale with rumored amounts that are stratospheric. For example, Club Paradise is supposedly going for $7 million dollars, Olympic Garden for $12 million, and The Palomino for $15 million. Of course these figures are all heresay and passed along like yesterday’s Enquirer, but hey, usually there is some truth to these things.
Obviously, the clubs would not confirm or deny the prices or even that the clubs were up for sale, but come on? Do they think we were born yesterday? Even if those were just asking prices, some bargaining would still put the price range well above Michael Jordan’s daily salary. Now let’s break things down and see what is actually for sale and whether it’s worth the inheritance your aunt left you. What would you actually be buying?
Well, first of all, the three clubs up for sale are all clubs with alcohol licenses. Why is that important? I’ll tell you. Because the city of Las Vegas is no longer issuing alcohol licenses for adult entertainment clubs. That changes how you look at things pretty quickly doesn’t it? Thus all the new clubs opening nowadays are all nude with no alcohol. Even though nude clubs make their fair share, it’s obvious the majority of the these other clubs profit comes from bar sales. What goes better with a pair of titties than a cold beer?
Secondly, there’s the land. Even though land in Las Vegas is still inexpensive compared to some parts of the US, land by or near the strip is and will continue to be at a premium. Olympic Garden seems to have the upper hand here as they are on the strip. Club Paradise is just a block off the strip, however, rumor has it they don’t own the land. What good is that? Now as far as Palomino is concerned, they are on Las Vegas Blvd, but they’re located past downtown.
Past downtown? And $15 million dollars? Now you’re probably wondering why The Palomino is the most expensive although it’s the farthest club out. Well, simple. It’s the ONLY nude club that also has an alcohol license in Las Vegas. Unique and completely under developed, the place is literally a goldmine for anyone who wants to take the time to market and develop the club.
Now how much do these clubs actually make and what’s the return on investment? Well, let’s just say that a decent nude club without alcohol sales will take in probably over a million dollars a year. Clubs with bar sales will probably at least double that. But $7, $12, or $15 million? When would a club payoff on amounts like that? Well, you have to consider that the clubs that are up for sale are all incredible facilities. They can probably make two or three times the amount any other alcohol club can make across the country. But that would still slate the return on investment to be somewhere after 4 or 5 years.
Still worth it? Look at it this way. Las Vegas has already surpassed the population mark of over a million. It is growing by leaps and bounds. It is also the major convention center and the gambling draws visitors from all over the world. Without any new alcohol licenses issued, the current clubs value continue to rise. A small investment of $7, 12, or 15 million now may seem cheap in 5 or 10 years.