Six years after announcing plans for Atari Hotels across eight U.S. cities, the Las Vegas project is officially dead. A company spokesperson confirmed the deal "didn't come to fruition." The brand is now focusing solely on its Phoenix, Arizona location, which was always slated as the first site.

Originally announced in 2020, the chain faced immediate delays from the COVID-19 pandemic. While the Phoenix hotel was supposed to break ground that year, construction is now expected to begin late this year with a 2028 opening. Other planned cities like Austin, Chicago, and Denver show no signs of progress.

However, the Phoenix project faces its own hurdles. A December press release revealed the company is still trying to raise $35 million to $40 million to fund the "playable destination" for gamers. Securing that capital is now the critical next step for Atari's sole remaining hotel venture.