The Night Howard Hughes Refused to Leave the Desert Inn
9 min read
In late 1966, a famous and famously strange billionaire arrived in Las Vegas in the dead of night, was carried into the Desert Inn on a stretcher, and took over the entire top floor. He told no one he was coming. He intended to stay a few weeks.
The casino wanted those high-roller suites back for the New Year's gambling crowd. The billionaire would not leave. What happened next sounds made up, but it is exactly how Howard Hughes ended up owning more of the Las Vegas Strip than anyone alive, and how he quietly changed what the city would become.
The man on the ninth floor
Howard Hughes was one of the richest men in America and one of the most peculiar. He had been a record-setting aviator, a Hollywood producer, an industrialist who built planes and tools and a fortune. By the mid-1960s he had also become a deeply reclusive figure, withdrawn from the world, obsessive about germs and privacy, surrounded by a small circle of aides who managed his every need.
He came to Las Vegas in November 1966, reportedly arriving by train and brought into the Desert Inn under cover of darkness. He installed himself in the penthouse suites on the top floor and essentially sealed himself off from the world. The windows were covered. The staff was kept at a distance. Hughes ran his empire by memo and telephone from a bed in a darkened hotel room, and almost no one ever saw him.
The Desert Inn was one of the premier casinos of the era, a place where the top suites were reserved for the biggest gamblers, the high rollers whose losses kept the whole operation profitable. And here was Hughes, occupying the best rooms in the house, and he did not gamble. Not a dime. He just stayed.
For a few weeks, the casino tolerated it. He was Howard Hughes, after all. But the calendar kept moving toward the end of the year, and New Year's was the biggest gambling weekend of the season, when the high rollers would come to town expecting exactly the suites Hughes was sitting in. The casino's owners wanted their rooms back.
Buy the hotel
The pressure built. The Desert Inn needed the penthouse for its paying gamblers, and Hughes showed no sign of leaving. He was told, in so many words, that he had to go. For most guests, that would be the end of the conversation. You check out. You find somewhere else to stay.
Hughes had a different solution, the kind only a billionaire can reach for. If the problem was that he did not own the rooms he was living in, he would simply buy the rooms. And the suites, and the casino, and the hotel around them. Rather than move, Howard Hughes bought the entire Desert Inn. The eviction problem solved itself. You cannot evict a man from his own hotel.
It was an absurd way to settle a checkout dispute, and it would have been just a funny story if Hughes had stopped there. But buying the Desert Inn turned out to be the first move, not the last. Hughes had discovered that he liked Las Vegas. He liked owning a casino. And he had more money than almost anyone on earth, sitting in a darkened room with nothing in particular to do with it.
So he kept buying. The Sands, a crown jewel of the Strip, the home of the Rat Pack and Frank Sinatra. The Frontier. The Castaways. The Silver Slipper, which he reportedly bought partly because its rotating neon sign annoyed him and he wanted control of it. A television station. Acres of land. Within a few years, Howard Hughes had spent a fortune assembling one of the largest collections of Las Vegas casinos and real estate anyone had ever held.
The ghost who cleaned up the town
Here is the twist that makes the Hughes story more than a rich man's eccentric shopping spree. His buying binge arrived at exactly the right moment to change the character of Las Vegas, and to change it for reasons no one quite intended.
For decades, the Strip had been built and run with deep involvement from organized crime. The famous casinos had been financed with mob money, skimmed of their profits by mob interests, and operated in a world where the lines between legitimate business and the underworld were blurry at best. The city had a glamorous surface and a criminal undercurrent, and everyone knew it.
Hughes was something genuinely new. He was a legitimate, immensely wealthy industrialist buying these casinos out in the open with corporate money. When a man like Hughes bought a casino, the previous owners cashed out and walked away, and the property passed into the hands of a respectable, if eccentric, billionaire. His spending helped push some of the old mob-connected ownership out of the picture, replacing the shadowy money with clean, visible, corporate money.
That shift mattered enormously. Hughes showed the financial world that a serious, legitimate businessman could own and operate Las Vegas casinos. He helped make the city respectable to big institutional money in a way it had not been before. The era of the corporate Las Vegas, the one we know today, owned by public companies and run like any other large business, traces a real part of its origins to the strange man in the penthouse who would not leave.
Power from a darkened room
The strangest thing about all of this is how Hughes did it. He never walked the casino floors he owned. He reportedly never went out to inspect his hotels or meet his managers or stroll the Strip he was buying up piece by piece. He ran the whole empire from inside his blacked-out penthouse, through a tight circle of aides, by way of handwritten memos and phone calls.
His instructions could be eccentric. He was obsessed with controlling what he could see from his window and with the details of how his properties were run, while remaining completely invisible himself. He became a kind of phantom owner, a man whose name was on everything and whose face no one saw, exerting enormous influence over the city without ever appearing in it.
His political and financial reach grew along with his holdings. A man buying that much of a state's signature industry, employing that many people, holding that much land, becomes a power whether he wants the spotlight or not. Hughes shaped the place from behind a curtain, a recluse who had somehow become one of the most important figures in Las Vegas without ever being seen in it.
It could not last forever. The strangeness that had let Hughes assemble his empire, the obsessions and the isolation, deepened over the years. His health and his grip on his own affairs declined. And eventually, just as quietly and strangely as he had arrived, he left.
Vanishing act
In late 1970, Howard Hughes disappeared from the Desert Inn as mysteriously as he had appeared in 1966. He was reportedly carried out in secret and spirited away from the city, leaving behind the empire he had built from a hotel bed. The man who had once refused to check out finally departed, and almost no one saw him go.
He never returned to Las Vegas. The casinos and the land stayed under the control of his organization for years, and the corporate structure he had helped pioneer kept growing. Hughes himself drifted on, more isolated and more troubled, until his death in 1976, by which point he had become a near-mythical figure, the billionaire recluse no one had laid eyes on in years.
But the mark he left on Las Vegas was permanent. He had stumbled into the city to escape, and ended up reshaping it. His refusal to leave one hotel set off a chain of purchases that helped move the Strip from the era of the mob toward the era of the corporation, from shadowy money toward Wall Street money, from the old Las Vegas toward the new.
It is one of my favorite stories about this town precisely because it is so absurd and so consequential at once. A strange, sick, fabulously rich man got asked to vacate his suite. Rather than pack a bag, he bought half the city. And in doing so, almost by accident, he helped invent the modern Las Vegas. The whole thing started because Howard Hughes simply would not check out.
Frequently asked
Did Howard Hughes really buy the Desert Inn just to avoid leaving?
Essentially, yes. Hughes had taken over the top-floor suites and refused to vacate them when the casino wanted the rooms back for high rollers. Rather than move out, he bought the entire hotel, which solved the eviction problem and began his Las Vegas buying spree.
What did Hughes buy in Las Vegas?
After the Desert Inn, Hughes acquired several major properties including the Sands, the Frontier, the Castaways, and the Silver Slipper, along with land and a local television station. He became one of the largest casino and real estate owners on the Strip.
Why was Hughes important to the history of Las Vegas?
His high-profile, legitimate corporate purchases helped push out some of the old organized-crime ownership and showed the financial world that respectable businesses could own and operate casinos. This helped move Las Vegas toward the corporate era it is known for today.
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