The Haunted Hotel is located by the Vice Beach in central Vice Point. In the early days of the game, the hotel was considered as abandoned and was unnamed. It was known as a place of interest to a small group of myth hunters and eventually faded over the years.
More than a decade after, a user discovered an Easter egg bound to the place. Thus, it was revealed that the hotel is based off the Biltmore Hotel in Miami, Florida. Shockingly, the hotel was abandoned from 1968 to 1987. Vice City is set in 1986, meaning, the game is taking place during the years of the abandonment.
Several myths have been interlinked with the hotel in real life. It was believed that the ghost of Thomas "Fatty" Walsh, a gangster that was shot during a party on the 13th floor, still haunts the location. Fatty was killed on the 13th floor, and 13 is a number commonly associated with bad luck superstition and the paranormal. This is also implied on the hotel in Vice City, slightly supported by the fact that a strange police car is always parked at the hotel's parking lot, most likely spying. Moreover, these ghost sightings escalated, when the hotel was abandoned and became a local urban landmark, further supporting the Vice City scenario. However, due to lack of any technical in-game evidence, this myth isn't confirmed yet.