The off-Strip, 826-room Westin hotel in Las Vegas Sold for US$195.5 million to Highgate
Date: September 2018
Location: East Flamingo Road, Las Vegas, Nevada, USA
Name: The Westin Las Vegas – four star
No. of Keys: 826
Seller: Fortress Investment Group. The hotel originally opened in 1977 as the Maxim. The property was sold in 2002, and Fortress acquired it through foreclosure in early 2016.
Buyer: Highgate with a further investment coming from investment firm Cerberus Capital Management also partnered on the deal.
The sale comes amid a slight dip in visitor volume in Las Vegas this year but is the latest in a string of off-Strip hotel deals as the broader economy gains speed. It also came after the Westin replaced its casino floor with a bar and restaurant called Jake & Eli, increased its meeting-room capacity by 20 percent and implemented other upgrades.
Other hotels near Las Vegas Boulevard that have sold since last year include the former Rumor for $18 mil- lion; the 24-story SpringHill Suites for $50.5 million; the 14-story Renaissance Las Vegas for $177.9 million; and the 1,500-room Hard Rock Hotel, which, according to a source, sold for about $500 million.
Highgate also partnered on the Renaissance purchase. Highgate, headed up by Mehdi Khimji, is an industry-leading investor and manager of hospitality assets.
Started some 25 years back, with offices in New York, Chicago, London, Dallas and Seattle, Highgate is a major hotel player in gateway markets, such as New York, San Francisco, Boston, Miami, Key West and Waikiki, and an expanding presence in key European markets.
They operate 100+ hotels and approximately 30,000 rooms around the world, with a diverse portfolio representing everything from legacy brands to bespoke lifestyle and independent hotels.
Price: US$195.5m
Prie per Key: US$236,683
THPT Comment: About 24.7 million people visited Las Vegas this year through July, down 1.2 percent from the same period last year, according to the Las Vegas Convention and Visitors Authority. This compares with total overseas visitors to a country like, say India – with just 5 million!
First Seen: Las Vegas Review Journal