Rooms there were pretty nice for the price, stayed there in August. I can see closing it down instead of renting them out at $20, your guests will leak out of your hotel downtown, and gamble wherever they want downtown, since there are about 10-12 hotels all really close together there.
The 350 ish rooms there are a drop in the bucket, compared to GN. I could see Goldengate doing the same, even LV club.
$20 rooms might work if you can trap the guests to staying there, and playing there. Otherwise your just a hotel losing money with too cheap rates.
Vegas is dead.