SpringHill Suites by Marriott Las Vegas Convention Center has new owners. Apple Hospitality REIT, Inc. announced it has completed the acquisition of the 299-room hotel for $75 million, or $251,000 per key.
The hotel opened in October 2009 and is located at Paradise Road in Las Vegas, adjacent to the recently expanded Las Vegas Convention Center. Besides spacious rooms, the hotel features more than 10,000 square feet of indoor and outdoor event space and a rooftop pool with views of the Las Vegas Strip.
The hotel includes a seven-story parking garage and surface lot with a total capacity of 244 spaces. The surface lot is zoned and master planned for future development of more guest rooms.
The hotel is steps away from the gaming, dining and entertainment venues of the Las Vegas Strip.
The “attractive” purchase price was just shy of a 10.7x multiple on trailing 12-month hotel EBITDA, the Richmond, Va.-based Apple Hospitality said in a statement.
“Las Vegas, well known as a premier gaming and entertainment destination, has dynamically expanded in recent years with the arrival of major league sports teams, the Sphere and Formula 1 racing, to capture an even larger segment of leisure travel demand,” said Nelson Knight, president, real estate and investments of Apple Hospitality. “With a strong recovery in overall demand, positive supply dynamics, the recent development and expansion of large-scale entertainment and convention venues and the upcoming Super Bowl LVIII, we expect performance for Las Vegas and for this hotel to continue to strengthen.”
Citing STR, Apple Hospitality said RevPAR for the Las Vegas Strip, NV submarket improved by over 18% in the trailing 12 months ended November 30, 2023 relative to the same period in 2022.
With the inclusion of the SpringHill Suites by Marriott Las Vegas Convention Center, Apple Hospitality’s portfolio comprises 225 hotels totaling 29,900 rooms across 38 states.
The company has two more hotels under contract for purchase:
- An Embassy Suites by Hilton in downtown Madison, Wis. (currently under development) for an anticipated purchase price of $78.6 million. Apple Hospitality expects to acquire the 260-room hotel in mid-2024 after construction is complete.
- A Motto by Hilton (to be developed) in Nashville, Tenn. for an estimated purchase price of $96.7 million. The company expects to acquire the 256-room hotel in 2025, following the completion of construction.
The acquisitions of the two hotels are subject to closing conditions.