When the concept of an Atari Hotel was first introduced back in 2020, it felt like the perfect marriage of nostalgia and modern luxury. The idea was to create a 400-room destination where the architecture itself paid homage to the iconic Atari “Fuji” logo, housing everything from virtual reality playgrounds to state-of-the-art esports arenas. Las Vegas was naturally topped as a primary location, with developers searching for several acres near the Strip to build a landmark that would bridge the gap between classic arcade culture and the future of interactive entertainment. Unfortunately, the timing of the announcement coincided with a global shift in the hospitality industry that slowed many major construction projects to a crawl.
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Why the plan hit a roadblock?
The primary reason for the project’s cancellation in Las Vegas boils down to the simple reality of real estate and timing. Representatives for the project recently confirmed that while they spent a significant amount of time between 2020 and 2024 scouting for the right plot of land and negotiating with partners, a viable deal never actually came to fruition. Despite occasional glimmers of hope and mentions of potential sites as recently as last year, the momentum eventually stalled out completely. In the competitive and expensive Las Vegas market, securing five to seven prime acres is a massive undertaking, and without a locked-in location, the financial and logistical path forward became impossible to maintain.
They may be searching for a new home base to kick start this project
While the news is disappointing for those hoping to stay in a neon-soaked Atari tower in Vegas, the brand is not giving up on its hospitality dreams entirely. The developers have decided to consolidate their efforts and focus on a flagship location in Phoenix, Arizona. This project has seen much more concrete progress, including the acquisition of land in the city’s entertainment district and a fresh round of millions in investment. The Phoenix version is taking a slightly more realistic but still visually striking approach, featuring a “breezeway” made of programmable LEDs and a smaller, more boutique-style room count that pays tribute to the year Atari was founded.
What’s next for this gaming hotel?
If you were looking forward to a gaming-themed getaway, you will have to wait a bit longer and look toward Arizona instead. The Phoenix Atari Hotel is currently on track to begin construction toward the end of 2026, with an estimated grand opening planned for late 2028.

