It’s still closed (last October 14 was the last day of business) and, by all indications, is likely to remain so. The Clark County Assessor’s office lists Blue Moon Resort LLC as the owner; in a Facebook posting at the time Manager John Hessling would only say that the circumstances of its closing were "beyond my control". News coverage was unbelievably scant, although there was some speculation that the land was coveted for a "Project Neon Highway" to downtown.
The Blue Moon had already survived a 2010 bankruptcy proceeding. At the time, Hessling blamed the Chapter 11 on recession-inspired deep discounts offered by Strip hotels, with which the Blue Moon could not compete, able to go no lower than $90 a night. At the time, the Blue Moon’s loans were held by Colony Capital, a fund notorious for its inability to pick good investments in Las Vegas and Atlantic City.
Also, while the Blue Moon was the most "out" hotel in Vegas, notorious for its clothing-optional policy (especially around the pool), it may have become outmoded in a casino-hotel industry that is increasingly open and savvy about marketing to the LGBT customer – with accommodation right on the Las Vegas Strip, on-site weddings, tailored deals, and exclusive night/daylife options, like the long-running Sunday pool parties at Luxor's Oasis, or Tropicana's hosting of Sin City Shootout, the world's largest gay sports competition. Stashed in a corner of town near the intersection of Sahara Avenue and I-15, the Blue Moon had a challenged location that may have ultimately done it in.
As if to cement this conclusion, we heard back from John Hessling just prior to this answer running, and he confirmed the sad fate of the place thusly: "The new owners have left it sit so long without maintenance I would bet it ultimately gets torn down and added to the land next door." An LVA contact at Entourage Bathhouse had the same take on things and told us that he and Entourage were taking over the lead in promoting Las Vegas PRIDE Week this September, a role previously enjoyed by Blue Moon.
As for Hessling, he told he's out of the hotel business altogether and pursuing a "new adventure opening a medical marijuana dispensary and grow house," while transitioning the Blue Moon Hotel website into a gay tourist-info page (on which he recommends Luxor as the place to stay now).
