Historic Cal Neva Lodge on the North Shore of Lake Tahoe sold once again
Submitted by Kelsey Penrose on Fri, 04/07/2023 - 3:57pm
When Larry Ellison, the founder of Oracle Corp., spent $35.8 million in 2017 to buy the Cal Neva Lodge in bankruptcy court, many hoped he'd bring his Midas touch to Lake Tahoe and the aging resort.
Now six years later, the almost 100-year-old resort once owned by Frank Sinatra has been sold again, this time to McWhinney, a leading real estate investment, development, and management firm out of Colorado.
“We are thrilled for the opportunity to craft the next iteration of this one-of-a-kind resort. The acquisition of Cal Neva is a perfect complement to our existing award-winning hospitality lifestyle portfolio,” said Chad McWhinney, co-founder, chairman and CEO at McWhinney. “Our vision is to reimagine and revitalize this iconic resort with deep historic roots into an exceptional experience for guests and the local community to enjoy for years to come.”
The recent purchase by McWhinney signals an exciting new beginning for Cal Neva, with planning underway to reimagine the resort as a modern leisure travel destination while nodding to its storied past, the company said in a press release Thursday.
A website has already been set up for the project, https://www.revitalizecalneva.com/.
McWhinney’s project team, in partnership with The Kor Group, plans to reposition Cal Neva as a Proper-branded hotel as they begin the initial visioning and design for the 13-acre site. They said they look forward to engaging with the local community and meeting with regulatory officials as the redevelopment plan takes shape.
“We believe the approach Proper Hospitality takes with each of our distinctive projects is the perfect fit for such a rare property. We strive to create an experience that is anchored to its location and creates long-term lasting value that supports the local community” said Brad Korzen, CEO at Proper Hospitality.
The Cal Neva has not been open since closing in 2013.
The storied history of the Cal Neva includes Frank Sinatra owning it from 1960-68. Wanting to create a top resort, he added a concert hall, a helicopter pad, and secret tunnels between the showroom and bungalows behind the hotel on the lake. He and celebrities could move about in these tunnels without being detected, including Dean Martin, Sammy Davis Jr., Marilyn Monroe, Joe DiMaggio, Will Rogers, and Peter Lawford (brother-in-law of JFK).
Prior to Sinatra, the lodge was already a hit with the rich and famous of the 1930s. It burned down in 1937 and was rebuilt in just 30 days due to the use of 500 workers. In 1935 an 11-year-old girl named Frances Gumm performed at there before being discovered by an MGM agent. She later changed her name to Judy Garland.
Whinney’s hospitality portfolio includes award-winning and LEED-certified hospitality offerings in Southern California, Colorado, Texas, Massachusetts, and Oregon. They state they create projects with an authentic and visible commitment to art and culture and are committed to sustainable development and care for the environment.
Hayes Barnard, a pioneer in the solar and sustainability business, will be the lead investor in the project.
“We’ve enjoyed being a leading investor in multiple McWhinney hospitality projects, including the Austin Proper Hotel, and believe strongly in their expertise and ability to transform the Cal Neva back to the iconic property it was in the 1920s,” said Barnard.
This project has special meaning to Barnard, who owns a home in Crystal Bay, Nevada.
“Our family has created lasting memories at Lake Tahoe for over 20 years and we are excited to play a meaningful role in restoring the Cal Neva Resort,” Barnard added.
