Siegel Group Acquires St. Tropez Hotel for $10.5 Million
September 14, 2009
By Tony Illia
LAS VEGAS – The Siegel Group Nevada has acquired the St. Tropez, a 22-year-old, 150-room all-suites hotel at 455 E. Harmon Ave. in Las Vegas for $10.5 million from Tarsadia Hotels, a Newport Beach, Calif.-based company that reclaimed ownership earlier this summer after previous buyer, MeriStar Hospitality Corp., defaulted on a loan. Montecito Cos. originally built the St. Tropez in 1987.
The eight-building complex, on 4.09 acres, has 5,000 square feet of meeting space, and an outdoor gazebo and pool. Rooms average 500 square feet in size, and feature large living areas, Jacuzzi tubs and private balconies overlooking a landscaped courtyard. Room rates previously ran $98 to $130 a night.
The two-story nongaming hotel closed for repairs and upgrades in July. Siegel is undertaking up to $2 million in improvements, with a planned reopening in October. Tandem Las Vegas is redesigning the rooms, replacing wallpaper, furniture, and fixtures. The property will get new landscaping, paint, facades, and signs. The roof will undergo patchwork repair, air conditioning units will be fixed, and the pool will get a makeover.
“We have big plans for the property, making it a high-end boutique hotel for Las Vegas,” Siegel Director of Business Affairs Michael Crandall said. “The bones of the property are really good. It just needs to be updated. It needs some care and attention.”
Repairs are being addressed during the shutdown; improvements will be made in stages over the next eight months. Planned amenities include a new restaurant and bar, an outdoor event center and a nightclub, as well as concierge and limousine service. St. Tropez will employ 80 people.
“This is a one-of-kind property with its unique layout and irreplaceable location,” Siegel President and CEO Stephen Siegel said. “The nice business model we plan on implementing at the location will be an immediate success once fully executed, despite the challenging hospitality market we are all presently confronted with.”
St. Tropez sits directly across from the Hard Rock Hotel at 4455 Paradise Road, which is finishing a $760 million expansion and upgrade. Siegel hopes to capitalize upon its popular neighbor for overflow business. It will continue operating under the St. Tropez name in the near term.
The acquisition marks the latest addition to Siegel’s growing portfolio in Southern Nevada, which consists of apartments and short-stay hotels. The company specializes in attaining undervalued and neglected facilities and repositioning them. Siegel now has 24 properties in the Las Vegas Valley combining for 3,500 units.