Apple Hospitality REIT Inc. has acquired the 299-room SpringHill Suites Las Vegas Convention Center for approximately $75 million, or $251,000 per key.
“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, Apple Hospitality. “In addition to robust leisure demand, the hotel benefits from its proximity to the newly expanded Las Vegas Convention Center, one of the largest and busiest convention centers in the world, and its own indoor/outdoor function space. The attractive purchase price is just under a 10.7x multiple on the trailing 12-month hotel EBITDA. 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.”
The hotel opened in October 2009 and is located adjacent to the newly expanded Las Vegas Convention Center. Amenities include more than 10,000 sq. ft. of flexible indoor and outdoor meeting space, a rooftop pool with views of the Las Vegas Strip and a seven-story parking garage and surface lot. The surface lot is zoned and master planned for future development of additional hotel rooms.
The property is located near the gaming, dining and entertainment venues of the Las Vegas Strip, as well as Allegiant Stadium, T-Mobile Arena, MGM Grand Garden Arena and Las Vegas Ballpark. According to data provided by STR for the trailing 12 months ended Nov. 30, 2023, as compared to the same period of 2022, RevPAR for the Las Vegas Strip submarket improved by more than 18%.
The company also has two additional hotels under contract for purchase:
- An Embassy Suites by Hilton currently under development in downtown Madison, WI, for an anticipated total purchase price of approximately $78.6 million with an expected 260 rooms, which Apple Hospitality anticipates acquiring in mid-2024 following completion of construction.
- A Motto by Hilton to be developed in downtown Nashville for an anticipated total purchase price of approximately $96.7 million with an expected 256 rooms, which the company anticipates acquiring in 2025 following completion of construction.
There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts.
Following the acquisition of the SpringHill Suites Las Vegas Convention Center, the Apple Hospitality hotel portfolio includes 225 hotels with 29,900 guestrooms in 38 states.
