Shopoff Real Estate Investments, in partnership with Contour, has acquired a 5.25-acre development site on the Las Vegas Strip. The developer plans to build a 450-room hotel branded and managed by Dream Hotel Group and entertainment venue on the site, which will be located on the south-end of the strip near the Allegiant Stadium and less than one-mile from Mandalay Bay Resort. The location made it an attractive opportunity for the developer.
"It is an iconic location," William Shopoff, president and CEO of Shopoff Real Estate Investments. "We are at the south end of The Strip, which has historically been a little bit ignored. We are also less than a mile from Allegiant Stadium, and that whole area is going to be activated be the stadium and all of the events that will take place there. To be a potential anchor to the stadium made this a really interesting dynamic for us."
In addition to the iconic location and the growth opportunities, the site is also located in a qualified opportunity zone, adding another layer of value. "The site is in a qualified opportunity zone, which gives us a fairly significant advantage for our development capital stack," says Shopoff. "It is general location and then the location in an opportunity zone that got our interest up. We are putting a qualified opportunity fund together to capitalize on the vertical construction. We will be working on that in the coming year."
At 450 rooms, the hotel is considered small by Las Vegas standards. Shopoff plans to design a hotel that will complement the nearby stadium and the other hotels on The Strip. "We will have 450 keys and a number of food and beverage opportunities. We anticipate music venues, a nightclub, a day pool and a club pool and it will have a lot of different niche opportunities," says Shopoff. "Rather than having really big activity spaces, the site will be divided into smaller operational spaces where someone can find their vision of what they want to do for that evening."
In addition, Las Vegas is becoming more of an entertainment destination than a gaming destination, and the hotel will reflect the growing demand for entertainment options. "The entertainment sector is growing at a much faster pace, and people are spending their dollars there," says Shopoff. "We want to compliment but also provide an alternative to the mega-resorts on The Strip. While 450 rooms isn't small, we consider it boutique by Las Vegas standards."
The project will break ground early next year and will open in early 2023.
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Kelsi Maree Borland
