Iconic waterfront Tahoe resort and restaurant changes hands

Over the past few decades, Sunnyside Restaurant & Lodge just south of Tahoe City has become one of the Tahoe area's most iconic waterfront destinations, thanks to its marina and deck with panoramic views of the lake.

And now, after nearly 40 years, the log-and-stone, 23-room hotel on the West Shore is changing hands. T S Restaurants - a group that operates 13 restaurants in California and Hawaii, including Duke's Malibu - will turn over operations to Reno-based Local Food Group, headed up by well-known local chef and restaurateur Mark Estee, both restaurant groups said. T S Restaurants has operated the property since it opened to the public after an extensive renovation in 1987. (The original home on the site dates back to 1908; it was converted into a seven-room lodge and marina in 1946.)

"Sunnyside is a very special place, and it's a special place because Lake Tahoe is so wonderful. It's been an honor for us to be part of the community for the past 39 years," T S Restaurants CEO Jackie Reed told SFGATE. "We're excited for its future. We know the new operator will love and care for Sunnyside just as we have."

She added: "We're sad to not have Sunnyside continue in our family of restaurants but we are also proud to turn it back over to the community. And we're looking forward to celebrating all the memories this summer."

Estee has been called "Reno's restaurant king." He's known for putting 24-year-old mainstay Moody's Bistro in Truckee on the map, as well as operating Liberty Food & Wine Exchange in Reno, Cucina Lupo in Carson City and multiple locations of Great Basin Brewing Co.

"Sunnyside has earned its place as one of Tahoe's most iconic gathering places, and we take that responsibility seriously," Estee said in a news release. "While we're excited about the investments ahead, our approach is rooted in preserving the qualities that made Sunnyside so special. We see our role as caretakers of an incredible legacy, and we're honored to help write its next chapter."

In addition to bringing on Local Food Group, a remodel of the lodge, larger private dining spaces and a kitchen expansion are in the works for the 39-year-old resort. Mike Dumke, president of Sunnyside, anticipates closing the property in October and reopening it in April 2027.

This summer, T S Restaurants also plans to hold several Summer Send-Off activities, such as guest experiences and employee spotlights, to mark its final months of operating the property.

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This story was originally published June 10, 2026 at 7:08 PM.