US: Real estate investment trust (REIT) Apple Hospitality has acquired the 299-room SpringHill Suites by Marriott Las Vegas Convention Center for approximately $75 million.
Located at 2989 Paradise Road, the SpringHill Suites Las Vegas Convention Center opened in October 2009, adjacent to the Las Vegas Convention Center.
It features more than 10,000 square feet of flexible indoor and outdoor meeting space, a rooftop pool, fitness centre, a 24/7 market and onsite restaurant, and a seven-storey carpark.
The acquisition by Apple Hospitality represents around $251,000 per key.
Nelson Knight, president, real estate and investments, Apple Hospitality, said: “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.
“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.”
In addition to SpringHill Suites by Marriott Las Vegas Convention Center, Apple Hospitality has under contract to acquire an Embassy Suites by Hilton which is currently under development in downtown Madison, Wisconsin. The company expects to purchase the property in mid-2024 for approximately $78.6 million.
