Jeff Cunningham and Bill Murney of CB Richard Ellis Hotels brokered the deal. At close, the six-year-old hotel at 5152 W. Latham St. was producing 66% occupancy at $59 per room per night. On a annual basis, it was achieving about $1.7 million in gross room revenue.

Cunningham tells GlobeSt.com that he and Murney first got the listing last October, but the owner lost the asset to GE Capital, which held the note. "The property went into this limbo state where we didn't have the listing anymore and it was an open proposal situation," he says. Five other brokers also submitted offers for the asset.

The buyer had been approved by Choice Hotels International and Hilton Hospitality Inc. to operate its hotel brands. "The asset fit perfectly from a price and brand perspective," Cunningham points out. And, he says, Royal LLC also liked the location. "The hotel will be right in the middle of a bunch of new development on I-10 and Loop 101 including the new football stadium and hockey arena," he says. The buyer, looking for more hotel assets in Phoenix, plans to invest another $700,000 in renovations.