FYI-heard the Del Rey just had a fire but not sure if the whole place burned down. There was also news that there was a deal for it to be sold, so curious if this was some kind of insurance scam. Either way, sounds like the end of an era.

Google is your friend.
Sounds like the hotel is open.  I found nothing on line about the Del Rey being sold.

It was sold once, but then taken back by "J" and a couple of the original partners.

Here’s a link to the del Rey being sold.

The article about the Del Rey was spot on -- and also hilarious -- the best article on the Del I've ever read.  And exactly why  my last few times in San Jose I stayed  just up the street at the Sleep Inn.  But there was little reason to go to the Del anyway because (as the article also said) the best talent has migrated to Jaco.  Still, it was fun to people watch the decadent scene there and to take "the walk of shame."  I will miss it.
There's a linked article to a local newspaper that reported the sale.  It's in Spanish but, even with my limited ability to read it I could see the hotel is being totally renovated and will return as a "family oriented" establishment.  The end of an era for sure.  No doubt the business will go elsewhere in the neighborhood, to places like the Sportsmen's Club and other nearby bars.

Perhaps someone who reads Spanish well can tell if the sale is final.

and yes, that is one article obviously written by someone who's spent some time there as opposed to authors who do two days of research and then claim to be experts on the subject.