Starwood Resorts Worldwide inked a deal to place a W Hotel at the SLS Las Vegas casino on the north end of the Las Vegas Strip.
Starwood Resorts will take possession of the Lux Tower, which holds 289 rooms, and convert them into W Hotel-branded rooms.
Once completed in September, the W Las Vegas will have a separate hotel entrance and generally operate as a separate entity from the SLS Casino, which used to be the historic Sahara Casino.
Starwood did not say how much it will spend to renovate the tower, but said the move will improve its portfolio and give it a property in the lucrative Las Vegas market.
The partnership should improve business at the SLS, which opened about 1.5 years ago, but this month ended its relationship with Hilton Worldwide Holdings on November 4.
SLS will continue running the casino and the 1,324 rooms in the resorts other two towers, along with retail operations.
Hilton Worldwide partnered with the casino when it opened after undergoing a $415 million renovation after the Sahara closed in 2011.
But the casino has lost money since opening, and Hilton and SLS officials agreed to end the relationship, which gave the SLS access to Hilton’s reservation system and made it part of its rewards program.
While the SLS has formed a new partnership, investor Sam Nazarian received a temporary permit to sell his remaining interest in the casino.
Nevada gaming regulators gave temporary approval of Nazarian’s sale of his 10 percent share to Stockbridge Capital Owners, which is the majority owner of SLS.
Nazarian a year ago obtained a one-year gaming license for the SLS, but the Nevada Gaming Control Board did not allow him to be involved in its operations.
