A historic downtown Palm Springs hotel linked to mobsters and movie stars has been sold to Los Angeles investors for $15 million.
The 57-room Colony Palms Hotel was acquired by real estate developer Michael Rosenfeld and his Woodridge Capital Partners in a joint venture with an affiliate of Oaktree Capital Management.
The hotel was built in 1936 by Al Wertheimer, a reputed member of Detroit’s Purple Gang, which specialized in bootlegging and other criminal pursuits. The Colonial House, as the hotel was then called, had an underground speak-easy and a brothel reached via a secret staircase behind a pantry cupboard.
It was a popular getaway for such Hollywood legends as Clark Gable, Humphrey Bogart and Carol Lombard, among others.
The hotel remained a celebrity magnet under later owners including actress Amanda Leeds Howard and boxing champion Jack Dempsey. Regular visitors included Kirk Douglas, Frank Sinatra, Marilyn Monroe, Howard Hughes and Ronald Reagan.