Portfolio grows for Siegel Group

The Siegel Group Nevada has purchased the former Atrium Suites Hotel, and plans to reopen the property in 12 to 14 months.

Siegel and a small private investment group acquired the property, located in the shadow of the Hard Rock Hotel on Paradise Road, in late December. Plans are to partner with a national hotel brand such as Hilton or Marriott.

With this property at 4225 Paradise Road, Siegel Group founder and CEO Stephen Siegel wants to attract conventioneers who want to use their hotel loyalty rewards points, a group largely underserved by his other holdings.

The property, two blocks from McCarran International Airport and 1.5 miles from the Las Vegas Convention Center, has at least 8,000 square feet of conference space.

"Something we don't have in town currently is meeting space, and that hurts us because a lot of people coming to town want to have big meetings and we can't because we didn't have it," Siegel said.

The company is still in preliminary planning and design for this property.

"We closed on it so quick that we really didn't have time to analyze what we want to do. I know in my head what I want to do, but I still need to go through that," Siegel said.

The six-story building, the largest the Siegel Group has owned, is on approximately 3.75 acres of land. Each of the 202 rooms is more than 500 square feet.

The County Recorder's office shows that it was owned by A/P Hotel LLC, which recorded a purchase in September 2007 for $50.5 million. LV Opportunity Fund in July paid $2 million for the property. The property had been closed for large-scale renovations, which never occurred. The Siegel Group paid $4.2 million for the property; the transaction closed Dec. 23.

The Siegel Group was able to close the transaction in five business days.

"We moved and closed this transaction pretty quickly," Siegel said. "I'm known for in the middle of the night going and walking and doing my due diligence on property so the next morning we can execute."

The company estimates that the acquisition will create 200 to 300 new full- and part-time positions. That figure includes construction jobs.

In addition to purchasing the crown jewel property, the Siegel Group completed deals on six other properties and sold eight fourplex apartment buildings in December.

"It's a record for us," Siegel Group business affairs director Michael Crandall said.

The company's portfolio now includes six hotels, 18 Siegel Suites residency hotels, five traditional apartment buildings, a slew of office buildings, land, retail buildings and automotive retail centers.

"I have a lot of people who have invested with me over the years. But I have no partners," Siegel said.

The new hotel also will feature a full-service restaurant, spa and lounge. An indoor/outdoor pool with attached bar will remain open year-round, and rooms adjacent to the pool area may be transformed into cabana rooms.

The Siegel Group's specialty to date has been redeveloping troubled assets in the Las Vegas market, which is what Siegel loves to do.

"This has great bones, it's really cool," Siegel said, referring to the structure of his new hotel. "I'm superexcited about it."

On opening a hotel so close to the Hard Rock Hotel, Siegel said: "I don't think we compete. I think we actually help each other, like we've done with Rumor. I don't think we have a Hard Rock-type property."

Siegel also said this new property won't cannibalize his customers from the 150-room Rumor Boutique Hotel, located less than a half-mile away, because both properties are small.

Contact reporter Laura Carroll at lcarroll@reviewjournal.com or 702-380-4588.