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$51M Buys Atrium Suites for Luxury Repositioning

LAS VEGAS-The buyer, Asia Pacific Capital Co., plans to turn the 202-room hotel next to the Hard Rock Hotel into a four- or five-star boutique property.

By Brian K. Miller | Updated on September 11, 2007

LAS VEGAS-The 202-room Atrium Suites Hotel next to the Hard Rock Hotel on Paradise Road here has changed hands for $50.5 million. The new ownership, Asia Pacific Capital Co. and Financial Capital Investment Co., plans to upgrade the asset to a four- or five-star property called Paradise Boutique Hotel. The principals of the companies are Eddie Chao and Richard Alter, respectively, and are based in Los Angeles. Chao also controls Alhambra, CA-based Candet Properties.

The acquisition and renovation of the four-acre Atrium Suites property is being funded largely by a $66-million loan from Lehman Bros. that was sourced by Xavier Sheid, managing director of Holliday Fenoglio Fowler’s San Diego office. The three-year, non-recourse loan floats over LIBOR; the borrower bought an interest rate cap at closing. Shied did not divulge the loan-to-total-cost ratio on the loan, but tells GlobeSt.com that the borrowers “put up a significant amount of equity.”

“The borrower plans to transform this property into an exclusive, high-quality luxury boutique hotel, which will feature personalized service in an intimate atmosphere with an edgy, modern design and a trendy pool and bar scene that will be the center of entertainment at the hotel,” Shied says. “This concept will appeal to the young, affluent customer who desires up-scale luxury lodging in a non-gaming environment.”

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