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Investors pay fee for Hooters Hotel buy

LAS VEGAS, Nevada -- The investment group working to buy Hooters Hotel made a $500,000 nonrefundable, nonapplicable fee payment Monday to retain exclusive purchase rights for the property.

Hedwigs Las Vegas Top Tier had hoped to close the deal by Monday, but decided to activate a one-month extensions because of the of late-year downturn in the capital markets.

The investment group will have to make monthly $500,000 nonapplicable payments until June 30 if the deal does not close before then to prevent other parties from negotiating a sale with Hooters Hotel, according to a purchase agreement signed with the hotel's parent company, 155 East Tropicana, last year.

Hedwigs paid $3 million in nonrefundable deposits towards the purchase price in 2007.

Hedwigs principal Richard Bosworth said the lending community will re-evaluate the transaction, which is approximately $235 million with debt, in the first quarter of 2008.

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