Located just off the Strip, The Lexi was once the Artisan Hotel, which became notorious among locals as a late-night hang out that hosted sex parties. But now the 64-room, adults-only Lexi has officially become Sin City’s first weed-friendly hotel.
depending on the night—with rooms on that floor can consume cannabis. No smoking is allowed in public areas, including the bikini tops-optional swimming pool.Ethan Pines for Forbes Because marijuana is still illegal at the federal level, every casino-hotel prohibits smoking cannabis and licensed consumption lounges have been slow to open. So, Rizk, whose company also owns the cannabis-friendly Clarendon Hotel in Phoenix, decided to make The Lexi a marijuana oasis in the Las Vegas desert. The only hitch is that his business model is in an untested area of Nevada state law.
The “gray area,” as Rizk sees it, concerns what is considered a private residence under Nevada law. “What happens inside a guest’s room is the question mark,” Bohner admits. Nevada state laws defines a private residence as “any building, buildings, or part of a building owned or leased by a public or private entity which serves as a private, non-transient residential dwelling unit.” These include single family homes, townhouses, duplexes, condominiums, mobile homes, and apartments.
“By next week, we should close on our first international hotel,” Rizk says, explaining that PHG is closing on a property in Jaco Beach, Costa Rica. The Clarendon’s weed concept helped get its occupancy rate back between 85% to 90%. And a new revenue stream: cannabis brands including local cultivator Mohave Cannabis Co. and former NFL running back Ricky Williams’ brand Highsman, now pay the hotel to sponsor suites.