Starwood Hotels & Resorts signed the SLS Las Vegas in the single largest addition of hotel rooms to the company's portfolio in history, according to a release. The SLS Las Vegas is owned by Las Vegas Resort Holdings, and its three towers, consisting of over 1,600 guestrooms and suites, reside on the Las Vegas Strip and Sahara Boulevard.
In September 2014, the hotel was acquired by Hilton and branded under the company's Curio - A Collection by Hilton soft brand. Prior to this, the hotel was owned by Stockbridge/SBE Holdings, a joint venture between Stockbridge Capital and sbe Entertainment Group. The property had just completed a three-year, $415-million renovation in 2014. According to a release by the Reno Gazette-Journal, both the SLS Las Vegas and Hilton Worldwide Holdings provided statements on Nov. 5, 2015, that they had "mutually ended" their franchise agreement.
Now, Starwood is rebranding the property under its Tribute Portfolio, converting its 289-room Lux Tower into a W Hotel following another renovation set to be completed in 2016. The conversion to the W Las Vegas will include the addition of a W Living Room hotel lobby, a separate entrance for W Hotel guests, almost 14,500 square feet of W-branded meeting and event space, the Away spa, Fit fitness center and the Wet pool deck and bar.
The hotel's other two towers, comprising 1,324 rooms, will operate as SLS Las Vegas, a Tribute Portfolio Resort. W Las Vegas will be managed by Starwood, while the remainder of the hotel towers, casino, F&B outlets and nightlife venues will continue to be managed by Scott Kreeger, the hotel's president and COO.
The hotel, designed by Gensler in consultation with Philippe Starck, has encountered financial difficulties since reopening in August 2014. The Reno Gazette-Journal reported that the resort lost $35.3 million in the first quarter of this year, and a further $48.7 million in the second quarter. In addition, hotelier Sam Nazarian sold his majority stake in the hotel at the beginning of October, giving up management of the property.