Dive Brief:
- Mortenson Development will break ground next week on a dual-branded AC Hotel and Residence Inn by Marriott, offering a combined 397 guest rooms across a 233,330-square-foot complex adjacent to the Las Vegas Convention Center, the developer announced.
- The new construction property will offer 237 upscale select-service AC Hotel rooms and 160 Residence Inn extended stay suites catering to convention attendees, business travelers, long-stay guests and leisure visitors, according to a news release. The property will also include its own designated meetings and events space for small to mid-sized groups.
- The hospitality project is located in “one of the country’s most active convention and business travel corridors,” according to Mortenson. While Las Vegas resorts saw widespread revenue declines throughout 2025 as a result of dampened tourism, local operators have expressed that group and convention demand is a bright spot for the market going forward.
Dive Insight:
The new dual-branded hotel project reflects Mortenson’s “confidence in the long-term strength” of Las Vegas, as the city “continues to be one of the most dynamic hospitality and convention markets in the country,” Nate Gundrum, vice president of development at Mortenson, said in a statement.
“By bringing AC Hotel 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,” Gundrum added.
The hotel’s proximity to the Las Vegas Convention Center positions it to capture the market’s growing business and group demand, while its location along Paradise Road taps into leisure demand from the nearby Las Vegas Strip and surrounding entertainment hubs, per the release.
The project kicks off after Las Vegas saw significant hotel performance declines in 2025 amid a tourism slump. However, resort operators, including MGM Resorts and Caesars Entertainment, reported strengthening travel fundamentals in the market earlier this year.
During a Q1 earnings call, MGM CEO Bill Hornbuckle said solid group and convention bookings drove his company’s Las Vegas gains in the quarter. Meanwhile, Caesars Chief Operating Officer Anthony Carano said during a separate Q1 earnings call that Las Vegas experienced a “dramatic improvement versus the second half of 2025,” noting a strong group and convention lineup.
Last month, Cvent named Las Vegas the second top meetings destination in North America, following Orlando, Florida. Cvent also listed several Las Vegas resorts, including The Venetian, Fontainebleau, Wynn and Encore, among the top 10 meetings hotels of 2026.
In addition to its flexible meetings space, the new dual-branded Marriott hotel features a fitness center, a coffee bar and retail market, a dedicated Residence Inn lounge with a complimentary breakfast area and a rooftop pool deck with a patio, bar and AC Hotel lounge overlooking the Las Vegas skyline.
Tempe, Arizona-based PK Architects is designing the property, with interiors overseen by Denver-based Wild Muse Interiors. The hotel is slated for completion in summer 2028.
