Minneapolis-based Mortenson Development is breaking ground on a $150 million hotel project adjacent to the Las Vegas Convention Center, slated to open summer 2028. The dual-branded property will encompass both AC Hotels and Residence Inn, offering 387 guestrooms across 233,300 square feet. It’s set to rise at 2989 Paradise Road, adding to the bustling mid-Strip accommodation options.
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A New Kind of Vegas Hotel
In a departure from the casino-centric nature of Las Vegas, Mortenson’s latest venture won’t feature a gaming floor. Instead, the development will cater to business and extended-stay travelers. Amenities will include a fitness center, retail market, coffee bar, and flexible meeting spaces. The property’s rooftop pool deck, complete with a patio bar, promises impressive views of the Las Vegas skyline. Still, “By bringing AC Hotels and Residence Inn together under one roof, we’re creating a property designed for how people travel to Las Vegas today and where the market is headed,” said Nate Gundrum, Mortenson’s VP of development. The project banks on the city’s ongoing appeal as a top convention and hospitality hub.
Market and Regulatory Context
Las Vegas remains a dynamic market, with the Las Vegas Convention & Visitors Authority reporting 150,151 hotel rooms as of April. Average occupancy hit 83.1% that month, paired with a nightly rate of $190. However, tourism numbers are slightly down — visitor volume decreased by 0.2% compared to the previous year. The project’s proximity to the convention center aims to capitalize on the city’s convention-driven economy. Mortenson is no stranger to high-profile projects in Sin City. The company helped construct Allegiant Stadium, home to the NFL’s Raiders, a $1.9 billion project that debuted in 2020. Currently, it’s involved in developing the Las Vegas Athletics Major League Baseball ballpark at the former Tropicana site.
Uncertainties and Future Prospects
Whether the non-gaming model will successfully draw the business crowd remains to be seen. Still, this isn’t the first casino-free offering in the area, but competition is fierce. Still, moreover, the downward trend in visitor numbers could pose a challenge. Still, the backing of brands like AC Hotels and Residence Inn — part of the Marriott International portfolio — is a major vote of confidence. Next steps for Mortenson include finalizing construction plans and securing necessary permissions. The development’s anticipated completion by 2028 aligns with Las Vegas’s broader infrastructural expansions and could further reposition the Paradise Road corridor as a business travel hotspot.
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