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Off-Strip Las Vegas hotel sells for $50.5M

An off-Strip hotel that opened after the economy crashed has a new owner.

Chicago-based GEM Realty Capital acquired the SpringHill Suites at 2989 Paradise Road, Clark County records show. The $50.5 million purchase closed July 19.

Listing broker Michael Parks of CBRE Group said the sale included the business as well as the real estate.

The 24-story, 299-room property is a half-mile east of Las Vegas Boulevard and across the street from the Westgate. It’s also right near the Las Vegas Convention Center.

The hotel’s rooms, meeting space and public areas are being remodeled, according to Parks. The work was launched by the sellers and should be completed by the end of the year, he said.

Parks said the hotel had been on the market for a few months and drew “a lot of interest,” noting that it’s adjacent to future expansion space for the convention center.

He said its average occupancy rate was just under 90 percent, though he did not disclose average room rates. Moreover, the site includes a 0.65-acre pad that has approvals for a 500-room hotel if GEM wanted to build it, he said.

GEM did not respond to requests for comment.

The seller, Indiana-based White/Peterman Properties, developed the hotel, Parks confirmed. The company could not be reached for comment.

Representatives for Marriott International, which owns the SpringHill Suites brand, did not respond to requests for comment.

The hotel opened in 2009 when Las Vegas’ economy was battered by the recession and initially “struggled like the rest of the market,” Parks said.

He added that the developers would have sold sooner but held on until the market improved.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.

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