RICHMOND, Virginia—Apple Hospitality REIT, Inc. announced the acquisition of the 299-room SpringHill Suites by Marriott 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 of 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 trailing twelve-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 SpringHill Suites Las Vegas Convention Center opened in October 2009. Adjacent to the newly expanded Las Vegas Convention Center, the hotel has amenities including guestrooms, more than 10,000 square feet 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 with a combined total of 244 spaces. The surface lot is zoned and master planned for the future development of additional hotel rooms. The hotel is steps away from the gaming, dining, and entertainment venues of the Las Vegas Strip and near Allegiant Stadium, T-Mobile Arena, MGM Grand Garden Arena, and Las Vegas Ballpark. According to data provided by STR for the trailing twelve months ended November 30, 2023, as compared to the same period of 2022, revenue per available room (RevPAR) for the Las Vegas Strip submarket improved by more than 18 percent.
As previously announced, the company continues to have two additional hotels under contract for purchase:
- An Embassy Suites by Hilton is currently under development in downtown Madison, Wisconsin, for an anticipated total purchase price of approximately $78.6 million with an expected 260 rooms, which the company anticipates acquiring in mid-2024 following completion of construction.
- A Motto by Hilton is to be developed in downtown Nashville, Tennessee, 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 guest rooms geographically diversified throughout 38 states.
