Although it opened to much fanfare, it struggled from the start because The Dunes was at the then-southernmost part of the Strip. The hotel frequently had to borrow money, and even the Sands Hotel lent its executives to help out, as well as bringing in numerous famous celebrities and entertainers such as Frank Sinatra's surprise appearance dressed as a sultan. In the late 1960s, Morris Shenker bought an interest in the Dunes and became its Chairman of the Board. In 1970, there were unrealized rumors Howard Hughes would buy into the hotel.