99% of the “reasons” it was doomed are completely unsupported crap (the characters were creepy), in many cases contradicted by other statements in there story. Supposedly it cost too much, and guests felt claustrophobic, except OH NO, actually it was packed all the time! The decor was nightmare fuel, except Karisima is still using it in Punta Cana.
The reason it closed is Nick wanted to play with other chains and Holiday Inn sued them for it. End of story.